IF CONSUMERS DON’T SPEND, SA ECONOMY WON’T GROW : ANALYST

IF CONSUMERS DON’T SPEND, SA ECONOMY WON’T GROW : ANALYST

CAPE TOWN – A consumer analyst that says if consumers don’t spend, the South African economy won’t grow.

Rod Salmon addressed the Absa Consumer Conference in Cape Town on Tuesday.

Consumers have tightened the purse strings amid tough economic conditions.

Barclays Africa’s Salmon says that consumer spending makes up 60% of South Africa’s GDP.

“If we have low spending, we’re going to have low growth. We need a manufacturing base to grow this economy and help it to transform from a developing economy to a developed economy.”

Managing Director at mass market researcher Foshizi, Lebo Motshegoa, says that retailers can survive the economic slump by understanding the culture of their target market better.

“When it comes to messaging, retailers we have a one-size-fits-all approach, which is problematic. By actually just assuming that just because it appeals to the top end, it will also appeal to the low end or vice versa is actually flawed.”

He adds that the informal sector is a perfect example for struggling retailers of how to understand a client base.
Ilze-Marie Le Roux / EWN
(Edited by Zamangwane Shange)

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Adekunle Owolabi
Adekunle Owolabi 637 posts

Adekunle Owolabi studies democracy, human rights, public opinion, political behavior, civil rights and policy aimed at improving the human condition, with a focus on African countries.

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