South Africans strategise to combat rising costs

-O+A11ES%85* - South Africans across the board are tightening their purse strings, with per cent of consumers changing their F0C* (fast-moving consumer goods) shopping habits, according to the Consumer OutlooN 2 2 , a 1I4 7hought /eadership report.

Forty-four percent of South African consumers feel they are in a worse financial position this year compared to a year ago, and of those respondents,

2 per cent say that increased costs of living are to blame for their recent financial struggles.

Sixty-two per cent of the respondents said that they are worse off due to the economic slowdown, while per cent of them had Mob security concerns.

Consumers are also downgrading from premium to mainstream or value products, with

per cent switching to lower-priced options.

=aN +aeri, 0' for 1I4 in South Africa, said that their data shows consumers are becoming increasingly proactive and creative in their strategies to reduce costs.

+aeri said that consumers are also using mobile channels to find better deals and shopping at stores that offer loyalty points.

Revealed

7he consumer report also revealed that consumers are optimistic that their finances will improve, with per cent of consumers believing that their financial situation will be better by the end of 2 2 . +owever, 2 per cent of consumers thinN that their financial state will be worse. Increasing food prices is a maMor concern for consumers over the next six months, with

per cent saying that they have only enough money to cover food, shelter, and the basics. Forty-six percent of South African consumers are closely

/isette IMssel de Schepper, Chief Economist at the %E5, says this implies that only a third of the retailers surveyed are satisfied with tracNing the overall cost of their basNet of goods.

7hirty-nine per cent of consumers are choosing to buy brands that are on promotion as a saving strategy, while per cent have stopped buying certain products to focus on Must the essentials.

Another saving strategy that consumers are using is bulN buying.

Forty-eight per cent of consumers are stocNing up or buy in bulN when their preferred products are on sale or promotion, while per cent of consumers are buying larger pacNage si]es.

Forty-six per cent of consumers are doing more of their shopping at discount or value stores, while per cent are shopping online to get better deals and save on transport money, and per cent shop at stores where they can use loyalty points to manage their spend.