Real Estate Investor Magazine South Africa February 2014 | Page 36

RETAIL TRENDS

BY AMBER MOORE

Consumer Buying Behaviour
Where, why and how do people shop?

T

he past year has not been a kind one
economically and many households are
struggling. The economic down turn has
a direct impact on how people shop, why they shop
and where they shop. With circumstances unlikely
to change drastically this year, we take a look at how
consumer buying behaviour has changed.
One of the things that has certainly altered in years
gone by is the way people interact with brands. No
longer are brands the trusted figures they once were.
People have less money to spend are less forgiving
of brands today, this leads to people listening to
their peers when it comes to comparing brands and
products. Ad campaigns may get them into the store
but customer reviews, feedback and social media is
what gets them to the check out till.
What this essentially means for retailers is
that they are having to interact more with their
customers, to listen to them and earn their approval,
because their approval translates into more
customers buying their brand.
The advent of the technological age has ensured
that people can compare brands and products in
seconds on a number of devices such as smart phones,
Apps, iPads and tablets. Brands that do not have a
significant web presence will suffer.
Technology is now providing the personal touch
from brands to their customer base, in South Africa
8ta installed touch-activated windows in its stores,
enabling customers to browse the retailer’s catalogue
throughout the day and night and free cans of BOS
Iced Tea were released from a Twitter-activated
vending machine in exchange for a tweet.
The economic downturn has dented the pockets
of South Africans, and many are starting to cut
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February 2014 SA Real Estate Investor

back on certain items. 53 percent of those surveyed
said they have cut down on dining out, and a large
number of respondents said they are now spending
less on entertainment items such as music and CDs
(47%), magazines (45%), DVDs and videos (44%),
and books (42%).
“It’s clear a vast majority of people are under
financial stress and have had to either cut down
on certain items or cancel them off their budget
completely. This trend is likely to continue as
global economic growth remains subdued, and
the effects of stagnant growth are felt in the local
economy. The survey has indicated a majority
of consumers have been spending less on items
they consider luxuries. It is important to note that
consumers do not necessarily consider an item as
luxury on the basis of the price tag, some consumers
consider clothes a luxury while others see perfumes
or jewellery as luxuries, hence it is more product
rela