media update's David Jenkin was in attendance on day one of the conference. 

The importance of the Township shopper market

The opening speaker at the Marketing Mix event, hosted by managing director Terry Murphy, delved straight into the heart of the matter and sought to dispel misconceptions. Gill Mkhasibe, managing director of The Mkhasibe Group, spoke on the results of a recent multi-township shopper survey. She began by highlighting a point many marketers are already aware of – that township shopping patterns have been changing in recent years.

This has been driven by the emergence of shopping malls and chain stores in townships and their broad success has demonstrated just how much money consumers in townships have to spend – far more than is commonly perceived.

Mkhasibe explained that many consumers were unsatisfied with the lack of variety in spaza shops, the poor levels of hygiene and customer service, and they desired better standards. Online shopping has also been blossoming in townships. Mobile devices are the tool of choice for a growing number of 20 to 30 year-olds to purchase non-consumable items, such as clothing, that aren’t otherwise easily accessible.

Authentic engagement, foreign operators and the importance of data

Siya Metane, better known as Slikour and managing director of SlikourOnLife, spoke about his experiences progressing from an artist to a marketer. He stressed the importance of authentic engagement with culture on the part of brands - points illustrated in his documentary film, Brands Doing Dope Sh!t. “The equity of the mass black market is in culture,” he said, “Culture is a story, a narrative, and many South African brands are missing that narrative.”

Amr Sheikh, national chairperson for the Somali Community Board of South Africa, spoke about the Somali community and sought to dispel misconceptions. Somali nationals make up a huge portion of South Africa’s spaza shop operators (80% to 90% of spaza shops are foreign-operated, a figure cited by Mkhasibe), and are, therefore, a key port of call for marketers in townships.

Reut Agasi, senior consultant at Eighty20 Consulting, gave a data-focused breakdown of township markets and South African consumers more broadly. Her presentation focused on employment levels, spending power and lending activity. She unpacked the way in which living standards have largely improved with a rise in earnings, but, in terms of transformation, much work remains.

A historically lonely market

Kabelo Kale, managing director of Keys Communications, spoke next. His tone was frank as he explained how township dwellers were historically a lonely market that, for years, were ignored. When stagnant markets sought expansion, he said, consumers were “put in boxes” by outsiders who didn’t understand them. The key to understanding township communities, he explained, was through the understanding that they are families, bonded through hardship and struggle.

Brands or marketers need to become a part of that family, and, to do that, they need to assist in those struggles.

He explained the concept of Asset Based Community Development, making use of the community’s facilities and giving back to that community as far as possible, in exchange for access to that market.

Chris Cockrane, managing director of Xpertek Contact, and Raymond Buckle, CEO of SilverstoneCIS, then spoke about their digital marketing activations in township shopping malls, such as that of Alexandra Mall, which opened on Thursday, 30 March. Free Wi-Fi is used as an engagement mechanism and, as customers enter the space, they are able to opt-in, with the incentive of a chance to win airtime, the platform acts as a passive consumer data collection funnel.

The Generation Next study

Mokebe Thulo, portfolio manager at HDI Youth Marketeers, unpacked the findings of their annual survey into South Africa’s youth market, the Generation Next study. A panel of students from township areas, ranging in age from 18 to 22, were then questioned about their perceptions. Some key insights for marketers included such points as how honesty in brand messaging is vital, how mobile is central to daily life, how influencers can be seen as more credible than celebrity endorsements, how visual advertising can make the biggest impact, and the importance of being concise and relevant, especially with video.

When asked what brands can do beyond advertising that township youth would appreciate, one panellist answered, “provide an experience, something they might never have seen before.”

A wrap up of day one

Concluding the first day of the conference, Bongani Chinkanda, business and strategy director at Elevator, gave some insights into branding for township markets citing case studies. He explained that not all township dwellers are impoverished and so brands make a mistake by fragmenting their brand story, with different messaging in areas perceived to be affluent. He urged a fundamental change of thinking.

For more information, visit www.marketingmixconferences.co.za. Alternatively, connect with them on Twitter using the #MMX hashtag.

Read more about what happened on day 2 in our article, Day two of the Township Shopper Marketing Conference advances understanding of mass-market.