3 factors impacting online shopping in SA, and how to address them during lockdown

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Article by Semona Pillay on BizCommunity

As of 22 May 2020 South Africa is on day 56 of lockdown. The extended lockdown has negatively impacted numerous businesses, employees, overall consumer spending and the economy in general.

To alleviate the pressure on the South African economy, government has introduced a ‘phased approach’ to lifting the lockdown which imposes less stringent measures per phase. However, this phased approach poses larger risks to already increasing Covid-19 numbers; 15,515 confirmed cases, 7,006 recoveries and 264 deaths in South Africa.

Despite the phased approach at lifting the lockdown, South Africa might never be able to ‘go back to normal’, especially in terms of retail which currently contributes 15% of South Africa’s GDP.

This presents an opportunity for retailers and consumers to adopt a ‘new normal’ – online shopping. In South Africa however there are numerous aspects that affect whether consumers will be able to accept the ‘new normal’ and determine the strategies that online retailers need to implement to accommodate their consumers. These include:

1. Recession

As expected, global lockdowns have had a negative impact on economies. According to Larry Elliot, economics editor for The Guardian, “the world should prepare for a coronavirus global recession”. South Africa is not exempt from this recession, and it should also be noted that Fitch Ratings downgraded the country to ‘BB’ status. This means that outside investors are not keen to invest in South Africa, and this could lead to further job losses.

Despite efforts from the South African government to introduce a ‘phased approach’ to re-establish the economy by lifting the stringent measures of lockdown, many businesses have closed down as they cannot reap lost profits.

2. Data access

Data access has been an ongoing issue. Ever since the SONA address in 2006, successive presidents of South Africa have suggested numerous strategies. Fourteen years later, consumers have only recently begun to experience reduced mobile data costs, following a directive from the President and the Competition Commission to mobile operators to reduce their data costs.

What’s more, obtaining a new spectrum licence to increase and improve internet connectivity was proposed in 2018, yet the Independent Communications Authority of South Africa (ICASA) is yet to conclude this process. This means that consumers in rural or remote areas still struggle to connect to the internet.

3. Digital literacy

According to a white paper written by Sefton-Green, Marsh, Erstad and Flewitt, digital literacy can be defined as “a social practice that involves reading, writing and multimodal meaning-making through the use of a range of digital technologies”.

The assumption on which this definition is based is that you would need first to be literate in order to have digital literacy. But South Africa has around three million people who remain illiterate. That can be attributed to poor schooling systems, an inability to afford to attend school, and dropping out of school. Most of these individuals are from no-income to lower-income earning segments. Thus they are further disadvantaged in not being able to use the internet to purchase online.

With these factors in mind, what can retailers and marketers do to remain #MarketingFit and to encourage all South Africans to shop online during a national lockdown?

To address the issue of a recession:

• Focus on value-offering packages of essential products that consumers need to buy even during a recession.

• Offer sales promotions, discounts, or value bundles for non-essential products to encourage consumers to buy them and so maintain their standard of living.

• Offer mobile data vouchers to customers who buy certain products or whose purchase amounts to a specific total.

• A large number of consumers are sceptical about providing their credit card details online, and most lower-income earners still use cash. So online retailers could offer a cash-on-delivery option.

To address the data access issue:

• Host competitions on TV and radio with mobile data bundle voucher giveaways or vouchers from the retailer. Airtime can also be given away when purchases are made.

• Optimise websites and mobile shopping applications with ‘light’ versions that require minimal data access by reducing the amount of rich content that requires more data.

• Partner with mobile service operators to offer free access in rural areas for a specific period of time. USSD technology can also be used to give away free data with spend on groceries.

To address the digital literacy issue:

• Constantly communicate with consumers via platforms that are available at home. In a lockdown, consumers might not be exposed to outdoor advertising, or be able to buy newspapers and magazines. Retailers can use TV and radio advertising to target lower-income earners, and social media for those who have access to and use the internet regularly.

• Use technologies presented by the 4IR, including artificial intelligence, to make the online purchasing process easier – for example, using technologies such as Siri or interactive chatbots on retailer websites to guide the purchasing process.

• Using voice-enabled settings on online stores for those who struggle to read content, so that consumers can hear and speak their prompts instead of reading and typing.

• Use virtual reality to create a 3D image of the store and its aisles to mimic the physical outlet, and so make the online shopping experience easier.

At the moment, consumers who have been sceptical about buying online might feel as if they have no other option. But there are numerous strategies that retailers and marketers can implement to encourage consumers to purchase online. Over time, this may alter consumer behavior, as consumers who were sceptical about buying online would experience the benefits associated with online shopping.

Retailers could, therefore, use the national lockdown to their advantage by trialing these online strategies, which would also promote an overall increase in online retailing in South Africa.

Covid-19: Short-term pessimism, long-term optimism

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Article by Rowan Leibbrandt on BizCommunity

This too shall pass. And once it has, we will need small-, micro- and medium-sized enterprises (SMMEs) more than ever to boost our flailing economy, drive innovation and create jobs.

Fortunately, we’re a nation of natural-born entrepreneurs – just look at the recycling industry in South Africa with over 80% of recyclables collected by informal waste pickers. These people are literally creating work from waste, and we can learn a thing or two from them. Call me an optimist, but I firmly believe that we can overcome this and create opportunity on the other side.

That said, as businesses we clearly need to navigate the current coronavirus-infested waters first, and this isn’t something any of us have experience in. We’re in what looks more like a wartime economy than any of the recessions and credit crises we’ve seen before, and most of us are learning on the job. It’s at unique times like these that we compete against unfolding events rather than other businesses.

It’s in that context, and in the spirit of collaboration, that we’ve been asked to share some of what we’re trying. I need to add an important disclaimer though: while we’re doing our best to figure this out, and these are the things we’re trying, they’re by no means the holy scripture on business management. We’re not experts, just entrepreneurs trying to survive.

Some of what we’re doing was suggested to us by more experienced people whose opinions we value, and some just seemed sensible to us when considering our particular set of problems. In any event, here’s what a drinks startup is trying to do to make it through lockdown, when everyone seems to really want a drink but it’s illegal to buy any!

1. We’re trying to manage how we feel about this emotionally

Trying to separate the short-term from the long-term seemed to give us some clarity of thought. And we consciously change gears between the two depending on what we’re debating – we call it being pessimistic for the short-term and optimistic for the long-term.

So, we’ve scenario planned for the worst, but we are also planning an aggressive bounceback when things somewhat begin to normalise (whatever that will look like).

2. We’ve identified which parts of our business are the most critical to our survival

In our type of business, we essentially have three types of assets – our receivables (which are basically out of our control now), our brands (which are in hibernation) and our people (who are our organisational muscle). We quickly drew the conclusion that our people had to be our focus.

We’re doing everything that we can to allow us to continue to pay salaries in our worst-case scenarios. And we’ve treated agencies, consultants, and small suppliers in the same way – essentially as extensions of our team. We think this makes business sense, and it makes us feel good about ourselves which isn’t something to take lightly in these stressful times!

3. We’re spending a lot of time on the phone

A lot of people who owed us money were simply not paying. We received a handful of calls from people who took the time to explain to us their particular situation and tried to give us some confidence as to when they thought they would be able to resume payments.

We were so impressed by these customers that we decided to do the same, and to use this opportunity to relationship-build by demonstrating that we are a different type of business.

Our aim became to outperform other creditors in terms of clarity and communication about how we were planning to resolve the situation. My business partner and I called all our creditors personally, shared as much information as we could, and committed to coming back to them with a payment plan to normalise our account once we know we may resume trading.

What we’ve learnt is that most suppliers understand the crisis we’re all in, and what they really want is a debtor that is transparent, has some sort of plan, and doesn’t just disappear.

We also talk to our bank every two to three days. Within the first week of lockdown, we took them through our scenario planning and how we will be addressing the various pinch points. Then we explained how we intend bouncing back. In this case, we felt that it would be best to be available and to over-communicate. It was a huge amount of work, but we’re glad we did it.

I think this has been one of the most important things I’ve learnt in this crisis: pick up the phone and keep talking to everyone who is important to your survival. Let’s hope it helps us get through it all!

4. We’re being optimistic about the long-term

All drinks companies will lose 6 weeks of sales (maybe more) so we are anticipating that everyone will be super defensive on the other side. SA will be unexciting for the multinational companies, and there is unlikely to be the same level of brand investment as there was before.

We’re trying to think of ways that allow us to emerge from this and be on the front foot while everyone else is on the back foot. We’re considering ways for us to recover quicker and move faster when we bounce back, enabling us to gain more ground in the categories we’re in, than we would’ve been able to under normal circumstances. It’s hard, but we think we have some good ideas…

We’re trying to stay convinced that if you can survive something like this, you definitely come out stronger – almost by definition. If you can get through an erratic currency, intermittent electricity supply, very nearly running out of water, and now corona, you can’t tell me you won’t have a pretty impressive business at the end!

Having to grow in this challenging environment forces businesses like ours to build the kind of muscle we wouldn’t have to build if we were operating elsewhere. Compare doctors who have trained in South Africa with those who trained in Sweden, for example. The same is true of startups we think.

I think that may be enough opining for one day. I know many companies our size (and maybe us too) won’t survive this crisis we’re going through, and we aren’t downplaying the sadness of so many people losing their jobs and their livelihoods. While we’re trying to be thoughtful and positive in our response to what are undeniably some pretty big challenges, there is no certainty in any of this, and we know we don’t have all the right answers.

That said, we decided to start a business here because of the enormous opportunities SA offers, and as far as we’re concerned those haven’t gone anywhere. We plan still to be around in a few months to go after them!

Pepkor donates over R2m towards Covid-19 relief

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Article on BizCommunity

South African retailer Pepkor is supporting the fight against Covid-19 through a number of initiatives, including donating a portion of senior leadership’s salaries to relief efforts and having its clothing manufacturing division produce face masks and surgical gowns.

Pepkor, which owns Pep, Ackermans, Tekkie Town and John Craig, has the largest retail store footprint in southern Africa with more than 5,400 stores operating across 11 African countries.

R2m towards Solidarity Fund

“Pepkor realises the responsibility of business to contribute to the efforts to alleviate the impact of Covid-19 on South Africa and its citizens. We are fortunate to have a wide footprint that allows us to reach our many consumers who have loyally supported our brands over many years, and are therefore able to contribute to various causes throughout the country,” says Leon Lourens, CEO of Pepkor.

“The Pepkor executive and non-executive board members have agreed to make a remuneration sacrifice of 30% over a period of three months which together with the salary sacrifice of the Pepkor executive committee enables Pepkor to make a donation of R2m to the Solidarity Fund. Additionally, the rest of the proceeds from this will be used to donate approximately 100,000 meals through other feeding schemes which distribute to the needy and hungry throughout South Africa.”

This is in line with President Ramaphosa’s call for unified action and to support the fight against the pandemic. “The business leaders of South Africa have to step up and take the lead to help protect the needy from the devastating impact of Covid-19. So many people in South Africa are suffering now and we trust that this contribution will make a difference in the lives of those who need it most,” Lourens said.

50,000 face masks produced per day

Pepkor’s Parow-based clothing factory, Pepclo, has started manufacturing cloth face masks and surgical gowns in reaction to the significant increase in demand. The factory expects to make approximately 50,000 cloth masks per day and can scale this up significantly should the current demand remain. The masks are washable and meet government specifications with a back envelope in which replaceable filters can be secured.

“We will donate 50,000 masks to government and Pepkor will also manufacture and supply its own employees with masks for personal and work use. The health and safety of our manufacturing staff is a major focus during this time and strict safety and hygiene guidelines will be followed in the factory to ensure their safety,” Lourens said.

Pepclo will start manufacturing protective surgical gowns for hospital staff, once government has confirmed fabric specifications and Pepkor has procured these materials.

Donations towards food security

Pepkor has also set up functionality across its store base for voluntary donations from customers to The Do More Foundation, which feeds thousands of families in resource-poor communities.

“Once we are fully operational, customers can donate R2 or R5 at the till points across our footprint of more than 5,000 stores. These funds will go towards feeding the many hungry children and families in our country during these desperate times,” Lourens said.

Pepkor also donates to a number of other non-profit food distribution organisations to support the needy and hungry people in South Africa. “Pepkor is committed to assisting the South African people and government in the fight against COVID-19 and will continue to provide support where we can during this critical time for our country,” Lourens said.

Woolworths rolls out drive-through click and collect shopping service

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Article found on BizCommunity

Following a successful pilot at the Durbanville Food Store last week, Woolworths is rolling out a new contactless, click and collect drive-through shopping service to an additional 14 stores across South Africa in the coming days.

The new convenient shopping service means that Woolworths customers will have the option to do their grocery shopping without having to leave the comfort and safety of their cars.

“During these last few weeks, we have been focused on putting in place all the necessary precautions to safeguard the wellbeing of our customers and employees during the Covid-19 pandemic. We have seen an unprecedented increase in demand for our online offering during this crisis. Since the start of the lockdown, we’ve increased our capacity by over 50% but demand remains sky-high. As an example, for the Easter period, we opened up almost 2,000 additional delivery slots which were taken up in a matter of hours,” said Liz Hillock, head of online and mobile at Woolworths.

The click and collect trial service is due to launch in the following stores: Kyalami, Fourways Mall, Morningside, Broadacres, Linksfield, Farramere, The Club, Waterkloof, Ballito Junction, La Lucia, Greenacres, Palmyra Road, The Sanctuary, West Coast Mall and Plattekloof Village.

Scaleable solution

“Click and collect is a great way to scale, because it also means we don’t compromise on our difference and core qualities, that being our rigorous cold chain to keep your favourite Woolies food fresh. We’ve also integrated the service into our website, and by taking a few extra days to do this rather than a manual standalone solution, means the correct catalogue is shown for the correct store, all pricing and discounts apply, and payment is processed safely online with zero contact.

“Customers simply arrive at our store during the chosen collection window, and our assistants will greet you at the allocated click and collect parking bays and bring your groceries to your boot,” explained Hillock.

“As we roll out and refine our processes, we will open up more slots and capacity for the service.”

Covid-19 will bring about a Retail Apocalypse

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Article by Howard Saunders on BizCommunity

 

Currently we all speak from a position of absolute ignorance. No one can truly know what the outcome of this pandemic will be, nor when the virus will pass or if it will ever be defeated. Even if a vaccine is developed in the next few months it’s clear that we will forever mark this moment as one of seismic significance. From now on we will talk of pre- or post-C19.

If there’s anything positive to be wished from this, it’s that perhaps this is the socio-economic reboot we’ve all been yearning for. It’s almost biblical. The developed world has become increasingly guilt-ridden, hysterical even, over its impact on the planet, and steeped in doubt as to mankind’s purpose upon it.

In short, we grew to despise humanity and believed humans were responsible for all the planet’s ills. We became fully signed up Malthusians! Our new gods utterly despised us (Greta, Attenborough) and believed robots would do our jobs better than us.

Pre-C19 we grew hysterical over every social injustice, inherited privilege or innate bias we could hunt down or dig up. Put simply, we now have something more urgent to fret about, namely survival.

In the long term, we will learn to pull together more and it may well set our ship on a clearer course. In the short term, however, we must not underestimate the catastrophic effects it will have on twenty-first century life. Thousands of shops, pubs, restaurants, bars, cinemas, galleries and venues will close down for good.

There’s no question the retail apocalypse has arrived. Unemployment will soar as fast as our incomes decline. Nations will focus on feeding their own, rather than exports, meaning we’ll become accustomed to buying locally produced, seasonal food. Yes, globalisation died in 2020.

We’ll learn how to cook again, bake bread and home-brew. We’ll take on more DIY, learn to knit, sew and play instruments. Our renewed sense of mortality will see many of us writing diaries and journals again. In short, we’ll live simpler, dare I say more austere, lives.

As social animals the restrictions on social activity will be our greatest challenge. Months on end without family gatherings, nights out, holidays, celebrations, parties, festivals and sporting events will hit us harder than we can imagine.

But when, finally, we do emerge from this storm, consider how much we will cherish those ordinary, yet beautiful, social interactions we took for granted only a couple of weeks ago. It’s the hugs and the handshakes that give humans their humanity.

Very soon we will understand that retail and hospitality were never really about buying more stuff or filling our bellies. Our industry is all about human engagement and post-C19 I expect shops and restaurants to welcome us more warmly and sincerely than at any time since the festive period.

Sadly, as C19 proliferates, we are unlikely to be dancing and hugging in the streets as in 1945. Masks and visors will become standard dress, and restaurant staff will be obliged to wear protective gear for insurance purposes. Tables will be widely spaced and prices will have to rise accordingly. But with unemployment at 30% very few will be able to afford the luxury of dining out, so it will feel like a return to the 1960s.

We’ll learn about ourselves

The coming months will teach us a lot about ourselves. We will learn how to work remotely, how to replenish essentials online, how to write, read and entertain ourselves (We’ll also learn that bulk buying makes no sense.) Social media will undergo a much-needed reset as we become more sensitive to the vacuousness of posts and tweets that scream little more than fatuous mundanity or misplaced self-puffery. Our media will mature to reflect the age.

The global move into cities will reverse. We will have learned how to work remotely and, more importantly, what we really want from work. Cities will lose much of the thriving lunchtime market along with most of the fast-casual brands. Cities will become less about work and much more about play as we head back to the city in the evening for the choice of restaurants and the entertainment.

Celebrity culture will undergo a much-needed correction too as our moral and social hierarchies turn upside down. Hollywood will be humbled enough to stop its finger-wagging and lecturing. The BBC will follow too, if it survives.

These next few months are a period of contemplation not just for us but also for brands. Any brand waiting to bounce back to market post-C19, revved up like bloody tiger will have got it wrong. Advertising, as we currently understand it, finally died in 2020. Brands, like humans, must rethink their roles and their purpose. Legacy brands will either die or back out quietly.

Post-C19, we will expect our brands to be philanthropic, sponsoring, partnering, teaching and incubating on behalf of the local community. Brand values will shift away from self-indulgence, luxury, celebrity and narcissism towards more fundamentals such as family, home, friends and wellbeing.

Cultures don’t usually adhere to the tidy chronology of the decades. The 60s didn’t properly begin until 1964, for example. But the new age that lies ahead really did begin in early 2020. Expect everything to get a reboot, from our lacklustre music, inane superhero movies and even our egotistical urban ‘starchitecture’.

2020 is a mighty test for us all. When we do come out the other side we are sure to be more appreciative of simple pleasures, and a little more content with life on Planet Earth. Perhaps 2020 is the year of vision after all?

The One Club launches free global Covid-19 Jobs Board

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Article found on BizCommunity

The One Club has announced the launch of The One Club Covid-19 Jobs Board, a free service to support the industry during the global pandemic by connecting job seekers around the world with agencies, design studios, production companies and brands looking to fill open positions.

The free service is open to the entire industry, including individuals at all levels of experience in all departments looking for full-time and project work, freelance assignments and internships. One Club membership is not required to participate.

Any agency, studio, production company or brand around the world can submit postings for immediate openings, as well for job opportunities expected in the future once the pandemic is over.

While economic instability has led some firms to tighten budgets and reduce workforces, others are still looking to fill positions. Upon learning last week of openings from some One Club corporate member agencies, Justin Epstein and Louis Geist, who head up the club’s Membership department, quickly created a simple form for posting openings. The form links to a page listing all job openings.

The team then contacted other corporate member agencies and offered the platform as a free service for them to list openings. In just a few days, The One Club Covid-19 Jobs Board had more than 180 job openings posted.

“We needed to act quickly to help people whose jobs have been affected by the pandemic, and this was the easiest, fastest way to connect people with job openings,” said Epstein, One Club corporate member and chapter manager. “It’s a simple, no-frills platform that can make a real difference for both parties.”

“The One Club’s mission is to support and celebrate the creative community,” said Kevin Swanepoel, CEO of the global nonprofit organisation.

“Everyone knows about the ‘celebrate’ part, with programs like The One Show. This new jobs board is an example of the ‘support’ we can offer to the industry, acting as a conduit to connect the global community with job opportunities.”

Capitalising on recession

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Article by Ian Rheeder, BizCommunity

South Africa’s economy has seen better days. With the addition of the coronavirus outbreak, the current state-of-affairs is not looking promising. Exploiting this recession may be the only strategy for survival.

Since 1994 South Africa has had three recessions (2008, 2009, 2018 & 2019). On average, a ‘recession’ lasts for two years, follows a boom and is generally defined as two quarters (6-months) of a consecutive falling GDP. This has placed many companies, individuals and investors in a tough position because profits are dwindling, and the cost of living has skyrocketed.

The only way to survive is to exploit this downswing to maintain your growth strategy. So, to cushion those sectors that are in “recession”, I’ve arrived at the strategic perspective that marketing strategies during turbulent times are not much different from boom time strategies. The difference is that these strategies need be so much more polished when your sector’s growth is in decline. Why? Because the proverbial ‘pie’ exists, it is just smaller. Finding success in a recessionary climate is quite credible; you just have to think out-of-the-box and not lose sight of success..

Businesses can consider the following strategies during these tough times:

1. Segmentation, targeting and positioning (STP Strategy)

Imagine dating the wrong customer segment, only to find out after years of servicing, that it was a waste of time? Rather target satisfied and attractive opportunity segments instead of low return “headache” segments.

For example, the construction sector is contracting (-5.9%) but finance is growing (+2.7%). Alternatively, consider dropping non-profitable, slow-paying, unsatisfied customers in these segments, or raise their price to “milk” them. Furthermore, consider withdrawing from weak segments where your competitive unique selling propositions (CUSP) aren’t valued much, and target segments you can dominate with your CUSPs after the recession.

2. Attack and/or attack-proof

Keep doing your research as some companies with strong financials will see this tough economic climate as an opportunity to attack. This is what is exciting about a recession – it’s an opportunity to exceed your targets, as many competitors understand that sometimes ‘the tree of economic freedom needs to be nourished with a battle’. But beware of counter-attacks. Rather go unnoticed by flying below the radar. Red Bull, for instance, did this by first “stealing” Coca-Cola’s shelf-space, and could now do a frontal-attack and launch a Cola.

3. Marketing mix strategies

Product: See the recession through your customers’ eyes. Due to competitive forces, buyers may have developed a new shopping-list of wants; the basic-product (i.e. car) for instance may not be as important now as the expected/augmented-product (i.e. value-added guarantee, after-sale service, and/or interest rates).

Your product-life-cycle may have also become stale, and now requires a few revitalised features to regain its growth trajectory (i.e. the VW Citi Golf just needed a name change and GT-stripes). Withdraw your weak low-profit margin/slow-moving ‘dogs’ that are likely to fail, and research and revitalise new economy ‘question-marks & recession-stars’. Also known as “fighter-brands.”

Price: Also, during a recession, customers ponder longer on decisions to sacrificing their budgets. Dropping your price may seem attractive, but it comes with the challenge of struggling to increase it at a later stage, so at least attempt to maintain your prices.

Recent research by Nielsen in South Africa (2019) shows that price discounts only lifts sales temporarily and hurts brand equity over the long-term. Rather emotionally differentiate and charge a premium. If your product is the low-price leader, then aggressively emphasise your penetration pricing, as low price is a relevant recession CUSP.

Promotion of your brand: Calling on your most valuable and loyal existing customers has superior results versus finding new ones. They are also the easiest to cross-sell and up-sell to and get you free word-of-mouth referrals. Consider a key account management (KAM) mindset – when you see a strategic client, don’t just pop-in and sell, but be a management consultant and enthusiastically assist them with their business model.

Research shows evidence that in a recession, the marketer who’s share-of-voice (SOV) is larger than their share-of-market (SOM), is likely to grow market share. However, you still need a great share-of-experience (SOE)—customer experience management (CEM) is always key.

During a drought, some will thrive and exploit the fragile. Sometimes the fragile may be the industry leader; so, if you are the leader, you need to understand how you will be attacked. Know how to cushion an attack. Those who survive natural selection will be stronger, more experienced and will improve their DNA. Lastly, never forget that constantly implementing a small series of changes, results in a big transformation.

Panic buying in the wake of Covid-19 underscores inequalities in South Africa

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Article by James Lappeman, BizCommunity

Pictures of empty shelves and long queues have pervaded all forms of media in South Africa over the past few days. These scenes are not unlike those in other parts of the world as many consumers succumb to panic buying, in fear of running out of toilet paper – among other essential items.
Many authors have covered the reasons for panic buying and all behaviourists would agree that this is not a new or unexpected phenomenon. But the way it plays out in a country as economically unequal as South Africa accentuates the gap between the haves and have-nots.

Who wins and who loses from panic buying?

Of course, there is a first-mover advantage in getting to the front of the line. This behaviour is what often triggers a rush on the stores in the first place. But in a country that is not actually experiencing a famine or toilet paper shortage, the losers are those who cannot afford to stock up should the need arise.

While inequality exists everywhere, wealthier economies have a population base that is generally more capable of stocking up their homes when needed. This is also true of South African households in the upper middle class and at the top end.

The majority of consumers in South Africa are, however, unable to fill up a trolley in the best of times, let alone to finance a serious stockpile.

South Africa by numbers

While there are different ways to segment a population of 58 million people, the UCT Liberty Institute of Strategic Marketing has used the National Income Dynamics Survey to paint a picture of the South African consumer landscape. The scope of this article does not allow a full explanation of how this segmentation was derived, but a few phenomena are notable from the graphic.

South Africa has roughly 58 million people living in 17 million households. About 1,000 households are added to this number every day. South Africa has a very high number of young people – almost half of its population is under 24.

If we divide the country by household income (that is, all the earners in the household combined) as shown in the graphic, then 7 million would fall into the category of middle class and above. That means 50 million people are living in households below the level needed to support a middle-class lifestyle. These 50 million people are likely to be using public transport and public health care and living with very little financial margin.

As one goes into the ultra-poor and survivor category, households regularly run out of food before the end of the month. A hallmark of living in this kind of household is a dependence on social grant income and a food shortage by the third week of the month. In addition, most poorer households live at least one taxi ride away from the closest supermarket and pay for extra seats on the taxi if purchasing more than a few bags of groceries. The one time of the year when stockpiling is more frequent is during the festive season (December) when carefully negotiated expenditure is made using savings from group schemes called stokvels.

When panic breaks out

Behavioural economists use many cognitive biases to explain why panic shopping occurs. Most commonly cited are phenomena like loss aversion, the bandwagon effect and probability neglect. These reactions to the initial run on essential groceries create a panic contagion that ignores logic. There is no food or toilet paper shortage and shopping is allowed to continue during this kind of state of emergency. Nonetheless, the week of 16-20 March 2020, saw a massive panic shopping spree marked by daily shortages in many categories.

Times of crisis accentuate the gap between the privileged and the rest. When the stock market dips, the wealthy have reserves to buy more shares and multiply their wealth in the long run. When a health crisis hits, the wealthy have access to medicine and private health care and can often navigate around work restrictions.

The poor, however, are not as fortunate. Even in the UK, the vulnerable are the losers as panic buying surged in early March. Workers on short term contract and freelancers globally are experiencing financial setbacks as this kind of work dries up. Germany has pledged 40 billion euros in aid to freelancers.

South Africa has freelancers in multiple industries but also the informal economy (and millions of households) hinging on micro enterprises like street vendors, spaza shops and taverns. These enterprises (many based on commuter populations and school children as their markets) are not registered businesses and unlikely to get any financial relief from the government. This form of enterprise does not have a “work from home” option as proposed by employment experts. These features of the informal sector are the same globally.

The social media posts comparing wealthy consumers lining up outside wholesalers and the poor lining up to catch a taxi home are anecdotal, but also somewhat symbolic of the realities in South Africa. The pictures of panic buying don’t reflect the average South African. They depict the average wealthy South African.

Many in the middle class may say they too are under financial pressure. This is true. But they are still in the privileged minority.

What does this mean?

The Covid-19 pandemic will eventually pass, as have other flu pandemics in centuries gone by. The fact that we were able to monitor this one globally in real-time is a possible turning point for the way such events are handled in the future.

The exact outcome of the pandemic in terms of its duration, fatalities and impact on the South African economy will eventually unfold.

In the meantime, the country is once again faced with the reality that it has a long way to go before the edges of inequality soften and the ‘average’ household may also participate in the next spree of panic buying – whenever that may be.

Pick n Pay introduces special shopping hour for pensioners

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Article found on BizCommunity

Pick n Pay will open all its supermarkets and hypermarkets an hour earlier every Wednesday for the exclusive use of elderly customers who need to shop for their groceries and essentials. The decision comes in response to requests from the retailer’s online community to ease the impact of the Covid-19 outbreak on vulnerable citizens, as stores become chaotic due to panic-buying and stockpiling.

The initiative will start tomorrow, Wednesday 18 March 2020, and stores will be open exclusively for customers over the age of 65 years from 7am to 8am. Customers should have a valid ID to enter the store during this time.

“A special shopping hour for pensioners was a great suggestion by our online community and we very quickly worked with our stores to make this a reality,” says John Bradshaw, retail executive: marketing at Pick n Pay.

“All our actions are focused on supporting the wellbeing of our customers. We know that the coronavirus is more of a threat to older people, and it is thus especially important that our older customers limit the number of times they are in busy spaces as much as possible. This dedicated shopping hour for our elderly customers will give them exclusive use of the store.”

Every Wednesday, all Smart Shoppers over the age of 60 will also earn double points in-store. Customers can claim this voucher at the Smart Shopper kiosk or mobile app provided they have updated their Smart Shopper profile with their date of birth.

Under Armour reveals its vision for sportswear in 2020

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Article by Lauren Hartzenberg, BizCommunity

Under Armour (UA) has grown to become a respected name in global athletic apparel, despite launching decades after many of its primary competitors, including Nike, Reebok and Puma. US-born Kevin Plank founded the company in his grandmother’s basement in the mid-90s, and created the first UA product, a moisture-wicking compression T-shirt designed to keep athletes cool and dry.

Today, the sportswear brand retains its keen focus on performance-enhancement, with a product range spanning apparel, footwear and accessories for men, women and kids. Innovative developments in textile design has resulted in athleticwear trusted to improve endurance and performance, and aid in recovery.

Under Armour South Africa recently hosted a Tech Summit in Cape Town, showcasing its latest product technology and the collections at the forefront of its strategy in 2020. These were some of the highlights:

HOVR Machina: UA’s popular connected running shoe mixes the speed of a racing shoe with the comfort of a long-distance trainer, and now it comes with real-time Form Coaching. This new feature provides personalised guidance, helping runners better manage their risk of injury and improve their performance.

Runners can also measure their foot strike angle and ground contact time, offered in a post-run analysis, to give them deeper insights into their form. Users can access this data using AU’s MapMyRun app.

Rush: UA’s Rush line of apparel is made from special fabric infused with 13 minerals (created in collaboration with Celliant), which recycles the body’s energy during performance. The intention is to provide the same benefits as an infrared sauna.

The Rush technology captures the heat energy released from the body, recycles it and returns it to the body. This recycled energy is said to increase temporary localised circulation, promoting improved strength and endurance, and powering tires muscles.

In 2020, UA is introducing Rush Seamless, a line of garments that are form fitting but with fewer seams to improve breathability.

Recovery: UA claims the bioceramic pattern printed on the inside of its Athlete Recovery apparel uses the body’s energy to increase the amount of oxygen reaching the muscles, helping to restore them faster.

In addition to faster recovery, the technology is said to promote better sleep, reduce inflammation and regulate metabolism. UA’s Recovery apparel is made using super soft materials for maximum comfort, and is available in Sleep, Travel and Compression collections.

Infinity Bra: This one-piece, injection-moulded sports bra is described as UA’s fastest-drying yet. The injection follows a figure 8 (infinity) pattern to offer adaptable support during exercise, as the company discovered that in addition to moving up and down during movement, breasts also move from side to side and in and out.

The bra is available in light, medium and heavy support.

Meridian Infused Leggings: These leggings were designed to address the dryness and itchiness one can feel during and after working out, due to moisture evaporating from one’s skin. UA created a responsive textile that’s embedded with quiospheres, which it says are essentially encapsulated moisturisers that activate as soon as the leggings are put on.

UA claims this is all thanks to a bacteria called Antarcatine, which produces glycoproteins that help retain water. In a nutshell, the latest iteration of Meridian Leggings combines UA’s softest fabric with moisturiser properties.

Tribase Reign 2: With greater grip, stability and flexibility, UA’s Tribase gym shoe was designed with high intensity workouts and CrossFit training in mind.

The updated Tribase Reign 2 has a larger external heel counter, more rubber traction, and a stretchy knit upper to secure the foot comfortably. The improved grip and durability, helped by the full-rubber outsole that wraps up the sides, is especially handy for training involving rope work.

The Only Way is Through brand platform

Under Armour’s local team also used the Cape Town event to announce the launch of the company’s new global brand platform, titled ‘The Only Way is Through’.

UA states that the campaign was created to bring to life the value of momentum; how momentum through work helps athletes push themselves to be better than what they thought possible, and how Under Armour technology is supporting those athletes constantly in search of incremental change.

The platform launch includes a 90-second anthem, supported with additional content throughout the year, including spotlight pieces on athletes exploring their “through” moments. It taps into the personal stories of celebrated athletes like NBA star Steph Curry, Olympic gold medalist Kelley O’Hara, NFL legend Tom Brady and Olympian Michael Phelps.

The Only Way Is Through will run across broadcast, online, out-of-home, and social media platforms with a focus on key global sport and cultural moments in 2020. Experiential activations will take place in major cities, and there will also be an eight-episode The Only Way is Through podcast presented in partnership with iHeartMedia.