Market Research Wrap: The elusive upper 30% income segment of SA
Cheryl Hunter (research at marklives.com)’s weekly wrap of the latest market and consumer research:
- Getting the right data
- Wine exports up
- Gigs and side hustles
‘You can(‘t) always get want you want’
Over the next few weeks, WhyFive Insights will be sharing a selection of insights from the 2018/19 BrandMapp survey, including what’s worrying the youth; why banks should be nervous; the future of money; the rise of Uber; and SA exit strategies. This week Brandon de Kock, WhyFive Insights director, explains why ‘you can(’t) always get want you want’ in research.
by Brandon de Kock. When it comes to finding the right data for the job in South Africa, Mick Jagger’s words certainly apply. Then again, “If you try sometimes you might find/You get what you need!” As always, strategists with brands aimed at the top 30% of income earners will probably not find what they need in the data offered by the recently released ‘AMPS replacement’ studies.
In a nutshell, establishment surveys (ES, PAMS etc) aim to paint pictures of the entire 40m adult consumers in the market. They rely on old-fashioned, face-to-face methodology and are obliged to find representative quotas. So, when it comes to the bottom 70% of the market, they do an excellent job: perfect if you’re selling maize, soap or anything else that resembles ‘low unit cost and high volume’.
But, if you’re trying to sell goods and services into more sophisticated consumer segments, the sample sizes aren’t viable and the practical value of the data is cloudy, to say the least. This ‘sophisticated’ segment we’re talking about takes home (and spends) about 80% of total income in the country, but they’re a minority in establishment survey data.
Simply put, the 25 000 plus people surveyed annually fall into that elusive upper 30% income segment of SA — that’s only 12.5m adults who live in households earning more than R10 000 monthly income but it’s the 12.5m who have meaningful disposable income.
The BrandMapp study offers a comprehensive view of those customers — their demography, their needs, their perceptions and behaviors and their brand usage across more than 1 800 filters. It’s a sophisticated interrogation of a sophisticated audience using sophisticated methodologies. And if you serve this market, you can actually get what you want.
For more, go to WhyFive Insights.
Wine exports increase; local demand down
Wine exports have seen a surge in volume, making up the majority share of the total volume share for 2017 as international demand for wine has increased tremendously over the past few years. This is according to a new BMi Research report, “Wine in SA — Feedback Report”.
The weak rand exchange rate has made the export trade more attractive for local producers. It’s also believed that certain parts of Europe experienced a bad harvest which has led to a rise in imported wine from South Africa.
Locally, the wine industry performed below par, as the volume declined compared to 2016. The only region that recorded a growth in volume for the base year was Gauteng. Lower disposable income, due to the weak economy, may be one of the contributing factors to the reduced demand for wine in the on-consumption channel, as consumers may be going out less often than previously.
The poor performance of the category may also be attributed to cheaper alcoholic beverages that offer greater value for money than wine. Wine has also had to compete with other alcoholic beverages, such as beer, which saw an increase in volume for the same period.
The industry selling-price increase in wine far exceeded annual CPI. It’s said that the drought has been a major driver of the price hike, as many vineyards are situated in the areas that have been hit the hardest. This has had a knock-on effect on production costs.
For more, go to BMI Research.
An analysis of the gig economy
A new Market Data report examines the fast-growing “gig” economy. Gigs, or short-term, part-time jobs, have become more popular among US consumers who want to diversify their income streams, with technology playing a big part as mobile apps and online platforms make it much easier to connect with customers and get paid quickly.
The report examines the evolution of gig work, its pros and cons, the reason that demand has risen among young and older workers, average earnings, and profiles of leading gig work sectors (ride sharing, temporary staffing agencies, food delivery services, personal coaching, home rentals, freelancer platforms).
Competitor profiles are provided for: Airbnb, Uber, Lyft, Door Dash, Postmates, GrubHub, Instacart, Fiverr, Upwork, Udemy, Coursera, the personal coaching industry, temp-help staffing industry, and more.
Buy the report at Market Research.
Cheryl Hunter (@cherylhunter) has written for the South African media, marketing and advertising industries for more than 15 years. A former editor of M&M in Independent Newspapers and contributor to Bizcommunity, AdFocus, AdReview and the Ad Annual, she has also produced for various television networks and currently consults on communication strategy and media liaison. She now does the new weekly “Market Research Wrap” column for MarkLives.com.
— One subscription form, three newsletters: sign up now for the MarkLives newsletter, including Ramify headlines; The Interlocker, our new monthly comms-focused mailer; and Brands & Branding, launching