To cope with rising prices, almost 40% of South African consumers shop more frequently at cheap retailers, and 48% believe private-label goods are a good substitute for recognized brands.
Food prices in August are up 8.2% over the previous year, exceeding the overall inflation rate for the economy and putting additional pressure on household budgets already tightened by high transportation costs and other price rises.
According to the research, to survive the cost of living crisis, 99% of consumers have altered how they shop for fast-moving consumer products, spending 34% of their money on whichever brand is on sale and 46% on necessities.
Budgeting, value, and trade-offs will be continuously strengthened in the coming year, according to NIQ South Africa Managing Director Zak Haeri.
The longevity of private-label goods, commonly called “store brands,” was also noted in NIQ’s Mid-year Consumer Outlook 2023. Many customers are using these brands to cut prices.
With intentions to expand the market, food manufacturers and retailers are experiencing considerable sales volumes for their own-label and value-tiered items.
