Peri-­‐Urban  Research  Report  2014  A  snapshot  into  the  digital  habits  of  the  South  African  peri-­‐urban  consumer  

Purpose  of  the  research  •  Provide  a  snapshot  into  the  life  of  this  key  market  

•  BeBer  understand  their  digital  reality  

•  Allow   marketers   to   beBer   plan   campaigns   using   accurate   insights  into  this  important  populaDon  segment  

•  IdenDfy   key   psychographic   consideraDons   that   inform   purchasing  decisions  

Who  is  the  peri-­‐urban  consumer?  •  Residing  in  townships  on  the  outskirts  of  Johannesburg  and  Cape  Town  •  Employed,  but  with  aspira@ons  to  improve  economic  posi@on  •  Currently  between  LSM  4  and  8  

•  Tech  savvy  with  80%  on  at  least  one  social  network  •  Most  have  a  Nokia  or  Blackberry  with  aspira@ons   to  own  an  Android  or   iPhone  

device  •  Spend  between  R100  –  R300  in  pre-­‐paid  air@me    monthly  •  Spend  a  lot  of  @me  commu@ng,  which  is  a  key  occasion  for  mobile  internet  access  

 How  was  the  survey  conducted?  •  Combina@on  of  quan@ta@ve  and  qualita@ve  research  •  Quan@ta@ve  data  was  collected  by  Instant  Africa  using  field  workers                on  mobile  phones  •  Data  interpreta@on  was  completed  by  Quirk’s  Strat  team  

Struggling  to  make  ends  meet  •  The  median  monthly  salary  in  South  

Africa  is  R2  800  (£153)  

•  S o u t h   A f r i c a ’ s   p e r i -­‐ u r b a n  consumers   are   largely   earning  around  this  figure.    And  they  spend  10%  -­‐  20%  of  this  on  airDme!  

•  There   is   a   high   dependence   on  micro  lending  

The  mobile  landscape  •  There  are  currently  40,7  million  ac@ve  mobile  numbers  in  South  Africa,                more  than  the  adult  popula@on  •  Less  then  30%  have  access  to  the  internet  at  work  •  83%  of  ac@ve  numbers  are  pre-­‐paid  

 

•  Consumers  will  have  numerous  numbers  from  mul@ple  carriers  in   order   to   capitalise   on   the  various  promo@ons  

•  87%  of  South  Africa’s  Facebook  traffic   is   generated   through  mobile  phone  

•  From  2012   to  2013  mobile   search  in  South  Africa  grew  by  167%  

 

 

eCommerce  •  Historically  peri-­‐urban  consumers  have  not  had  access  to  bank  accounts  •  Most  don’t  have  a  credit  card  and  this  has  limited  the  uptake  of  eCommerce  •  Age  rather  then  income  has  been  the  main  differen@ater  among  those                who  shop  online  •  Many  South  African  eCommerce  sites  now  accept  cash-­‐on-­‐delivery  and                click-­‐and-­‐collect  payment  op@ons  to  be]er  cater  for  this  market.  

Low  cost  communicaDon  •  Mxit  a  local  messaging  service  sDll  

holds  a  large  market  share  

•  Unsurprisingly   WhatsApp   has  made   significant   inroads   into   this  very  cost  conscious  market  

•  Concerns  around  the  cost  of  data  have   lowered   the   uptake   of   apps  like  Instagram  and  Pinterest  

OpportuniDes  for  brands  •  Desire   to   engage   in   Social   Media   is   restricted   by   hardware   and   costs   rather   then  

know-­‐how  or  desire.    Therefore,  providing  access  (and  asking  something  in  return)  is  a  key  opportunity.  

•  Transit   Dmes   are   important   occasions   to   create   engagement   via   uDlity   /  entertainment.  

•  As   the   cost   to   connect   decreases,   the   peri-­‐urban   consumer   will   increase   their  interacDon  online.  Brands  who  are  able  to  deliver  a  message  that  resonates  with  this  communiDes   aspiraDonal,   and   opDmisDc   mind-­‐set   will   enjoy   the   greatest   organic  reach.    

•  There   is   lots   of   room   for   clever  mobile   commerce   and   fulfilment   innovaDons   –   eg.  USSD  ordering,  mobile  payments,    container  depots.  

Thanks