STRATEGIES
“Conversely, premises, which are available to
rent, are usually more centrally situated and while
• People are all brand conscious: While poverty is
obviously a barrier to growing brands, income has little
Some tips to help you create the right rural
reatil centre
• Interact with the community: Township and rural
shopping centres are the quintessential “market squares”,
where people naturally gather to trade, meet, interact,
etc. They are the natural centres of communal life.
Retailers should entrench themselves, their brands and
their offerings by becoming involved in communal life,
finding ways of making their goods and services relevant
and being seen to be socially active and responsible.
large units are perhaps scarcer than smaller units,
the rental rate is certainly more cost effective than
building. This is combined with the advantage
of repairs and propert y rates remaining the
responsibility of the landlord,” says de Lange.
T hink out of the box: T here a re abundant
opportunities in township and rural areas. In
areas sometimes less than a couple of hours away
from urban centres, or closer, communities are
often starved for formal retail offerings. Before
discounting expansion into these areas look closely
and talk to companies who understand the locations,
dynamics and market opportunities in township and
rural areas.
• Be appropriate in what you offer: People in
township and rural areas are seeking convenience
i n shopping, value for money and cultural relevance.
Rural shoppers may live far from the bright lights,
bearing when it comes to buying brand-name products.
Research shows that in the township consumer’s mind a
brand-name product has to be far superior to a no-name
knock-off. Research shows that brand-name products
are viewed as liberators.
• View informal traders as an opportunity: Often a
barrier to entry for retailers is the personnel to operate
and manage shops in outlying areas. There are many
experienced local traders who have been informally
plying their trade in the area for a while.
RESOURCES
JHI
but they are just as savvy as urbanites.
32
Commercial Handbook 2013
www.reimag.co.za