Tag: festive season

Source: Supermarket & Retailer

The global retail sector is in an unprecedented state of flux and as the end of the year approaches, Nielsen has identified a range of evolving consumer groups as well as four Holiday/Festive consumer behavioural resets related to this crucial holiday period.

Nielsen Retail Intelligence MD for Sub-Sahara Africa Kelly Arnold comments; “As the end of the year approaches, upcoming festivities are going to look very different for consumers depending on where they live, what restrictions they face and how COVID-19 has changed their spending habits. However, the reality is that the ‘golden quarter’, the crucial holiday trading period is already underway and with the continued spread of the virus and ongoing restrictions, this year’s festive period will be unlike any other.

Evolving consumer groups

Against this backdrop Nielsen has identified five different consumer groups that indicate how financial and physical restrictions could manifest leading up to the festive season:

  • Constrained and restricted consumers have suffered income loss as a result of COVID-19 and have less money to spend and also have less freedom to physically congregate and shop for their holiday needs due to local restrictions to travel, business openings and social interaction. As a result of limited physical shopping, they may have less opportunity to shop around for the best deals and assortment.
  • Constrained but free consumers have also suffered income loss and are likely to have a savings mindset as they prepare for the festive season but because they have no physical restrictions, they will have more freedom to celebrate with others and to seek the right products and price points to suit their needs.
  • Cautious middle consumers have not yet been impacted financially and their celebrations are not limited by local physical restrictions. They are more likely to be cautious spenders and may prioritise occasions and gift giving with only those closest to them.
  • Insulated but restricted consumers have not been financially impacted by COVID-19 but festivities will be impacted by local physical restrictions. Smaller gatherings may curtail normal spending and encourage self-indulgent celebrations. Financial flexibility will drive these consumers to splurge in some ways to compensate for experiences that are no longer possible (e.g. travel).
  • Insulated and free consumers have also not been financially impacted by COVID-19. While their social interactions may not be restricted, their typical celebrations may be affected by those unable to be with them this year. These consumers are likely to spend the most freely and to exhibit pre-COVID-19 holiday behaviour.

New purchase behaviours

To help chart the behaviour of these consumers, Nielsen has also identified four emerging patterns to help predict the drivers of pandemic purchase decisions in future. When applied to the context of the many upcoming holidays and year-end festivities, these reset patterns now highlight some important new behaviours that could emerge this season:

  • Basket reset – holiday spending and gifting will be refined based on what and who are considered essential for each consumer. This will require retailers and manufacturers to redefine what’s festive and capitalise on the broadened assortment of what consumers might consider “giftable” this year. From a necessity that can no longer fit the budget, to a product that has been harder to get in stores this year, there will be big shifts in what defines a “gift”.
  • Homebody reset – gatherings will be smaller and more intimate with many planned at the last minute. This might see the introduction of so-called ‘Single-Serve Celebrations that cater to needs for convenience, health and budget consciousness by offering serving sizes and packages conducive to small or socially distanced gatherings.
  • Rationale reset – consumers will spend more on themselves, prioritising self-care this year. Retailers might then look to engage with empathy and recognise the trade-offs consumers will need to make. There is also scope for just-in-case solutions that cater to consumers who may be waiting to see whether they are able to physically celebrate a festive occasion or not.
  • Affordability reset – online shopping will power more holiday consumer behaviours than ever before creating a need to convert impulsivity. With limited physical touch-points with consumers, it’ll be vital to create spontaneity, even in an online environment.

Within this new Festive framework Arnold points out: “It’s clear that celebrations are going to look very different for many consumers depending on where they live, what restrictions they face and how COVID-19 has impacted their purchasing power. Despite the diverse global spectrum of holiday celebrations, COVID-19 has forced many consumers to re-think their holiday plans in similar ways, based upon known levels of virus-related constraints and this will have far-reaching consequences for both brands and retailers.”

Five DStv scams to avoid this Christmas

By Tom Head for The South African

If you’re a subscriber to the network, take note. At least five major DStv scams have been identified this year: here’s how to play it safe.

‘Tis the season to be cautious, folks. There are a myriad of DStv scams waiting to trip-up some unsuspecting victims this Christmas. The network have confirmed that a number of schemes have already been detected, and bosses have raced to warn South Africans about the dangers they face.

It isn’t just the technophobes and boomers that are getting duped by the sophisticated rouses, either. These DStv scams have caught-out people across the board. But what do we need to look out for?

The gift card phishing scam
Customers receive an email informing them that they’ve won a cash gift card or huge sums of prize money from a MultiChoice competition. However, targets are then asked to provide personal details in order to claim the prize. It’ll be for a competition you definitely didn’t enter, so please, don’t hand any of your information out.

The “final notice” SMS scam
Some DStv customers have received an SMS claiming to be from DStv demanding payment for a DStv Explora account. It threatens action if payment is not made today and includes banking details. However, the network do not send such crudely-worded communications. You can contact them to find out the status of your account if you feel unsure.

Recruiting for social media jobs
There are dangerous scams disguised as recruitment ads for MultiChoice. One of the most popular ones offers applicants the chance to be driven to an interview. MultiChoice does not offer such a service, under any circumstances. Use the Afrizan website to verify any offers.

The DStv Premiem upgrade scam
Opportunists are contacting customers – via email or telephone- and offering them DStv Premium for a fixed once-off fee per yea, where the customer pays the fee directly to the scammer. Customers are asked to disregard such offers, and they are asked to refrain from letting a third-party upgrade an account for them.

Say no to installation offers
Don’t let your desire for a festive bargain cloud your common sense. If someone offers you a discounted DStv subscription at a once off payment, treat this with suspicion and check it with the network. Anyone offering “free package upgrades” or “free DStv for life” in a cut-price deal will be trying to rip you off.

How to avoid these DStv scams
The network have issued the following statement, advising consumers on how they can stay safe this year:

“There are usually tell-tale signs that can help you spot if something is a scam. Like receiving an email or SMS from us claiming that you’ve won a huge prize for a DStv competition you never entered, and for which you must either pay a fee or verify yourself by sending personal details – sounds too good to be true? It probably is.”

“MultiChoice will never request your personal details via email or SMS – please do not hand over your personal information to anyone claiming to be from DStv. Always check the email address and emails containing spelling and grammatical errors. MultiChoice only use one domain for emails (multichoice.co.za).”

By Tia Frapolli for The NPD Group

The holiday season presents consumers with a perfect opportunity to get in touch with their creative side – a behaviour that bodes well for the US office supplies market.

Several arts, crafts, and traditional supplies categories that require creativity and offer an experience will be among the top industry performers this holiday. And, we know from NPD’s Holiday Purchase Intentions Survey that experiential gifting is not only trending with consumers, but set to grow over last year. In fact, the survey found that four out of 10 consumers plan on giving these types of gifts this year.

When it comes to the craft-related categories, consumer shopping behavior indicates a preference for discovering and purchasing these products in-person as opposed to online. Specifically, NPD data shows that acrylic paints, paint brushes, specialty note cards, and canvases all have a very low penetration in the e-commerce channel. In fact, over 95 percent of purchases in each of these categories are made in-store.

Tied to such products, we expect that popular holiday craft activities will include ornament decorating and homemade holiday décor. In addition, as spending time with friends and family is top of mind during the holidays, we expect the ever-popular canvas painting parties to continue to grow this season, and there are the sales numbers to show for it—canvas sales have grown by 20 percent over the past year.

Coinciding with the maker’s movement and popularity of hand lettering, this season we also expect to see a rise in holiday card making with custom lettering. A variety of writing instruments used for this activity are already seeing growth; collectively, sales of gel, porous, and fountain pens as well as dual, ultra, and extra fine color markers have grown by 8 percent leading up to the holiday season.

Without a doubt, consumers let their creativity shine during the holiday season, and this presents a favorable opportunity for the office supplies industry to get in on the action.

Pressure on retailers may lift in Q4

While there is no outright good news for retail, analysts say the last quarter of 2017 is unlikely to plunge the sector to new lows.

“The interest rate cut and lower inflation numbers should see conditions improve for consumers on the balance,” says Old Mutual investment professional Meryl Pick.

“There may be a lag and the improvement could be muted to begin with. We may see a marginally better fourth quarter compared with last year.”

The South African Reserve Bank surprised markets with an interest rate cut of 25 basis points in July. In the same month, inflation fell to its lowest level since November 2015.

Inflation, as recorded by the consumer price index, dipped to 5.1% in June, from 5.4% in May.

Pick says despite this encouraging data, retailers had indicated that trading conditions would remain tough for the rest of 2017.

Cratos Wealth portfolio manager Ron Klipin says there was good news for retail shares at their current prices.

A year ago, Pick n Pay’s share price was trading at about R80.76. The share currently trades at about R62.84.

Mr Price Group was at about R228.50, but has since fallen to about R175.66.

“Looking at retail counters, prices are becoming more attractive and may see some buying because of the value they offer at these prices. But the conditions in the sector itself aren’t great,” says Klipin.

Klipin says there was a lack of confidence in the market and the economy, while household incomes were under pressure.

“There are a lot of pluses and minuses and anything could change the balance. There is still a possibility for a downgrade, but the lower level on inflation appears to be a positive aspect.”

In clothing retail, Pick and Klipin says Mr Price Group and TFG were best placed to survive the economic environment.

In food retail, Klipin says Shoprite would fare best, being affordable for most consumers. The retailer’s African operations would also help support it.

By Colleen Goko for Business Day www.businesslive.co.za

The South African Council of Shopping Centres has reported some welcome festive season growth coming out of the country’s malls and retailers at the end of 2015, notwithstanding tough trading conditions in local markets.

Amanda Stops, CEO of SACSC, notes that recent figures from Statistics SA show retail sales increased at 3,9% year-on-year for November 2015. This is much higher than expected.

Plus, updates from retailers themselves also reveal sales growth for the final months of the year, including Truworths, Woolworths, Massmart, The Foschini Group and Shoprite.

The council’s own review of festive trade taken from a sample of the country’s shopping centres shows a trend of growth in turnovers, despite shopper numbers generally remaining unchanged from 2014.

“Of course, there were outperformers that far outstripped this with significant growth in sales and shoppers. However, these were the exceptions and often the result of a major extension or upgrade taking place at a centre,” says Stops.

“There were also some underperformers, mostly in communities particularly hard-hit by economic strife.”

Stops says the country’s shopping centres play and important role in the festive season and most worked hard to create a festive spirit for shoppers at the end of a tough year, serving up all the ingredients needed to support retailers’ sales and spread a little cheer among South Africa’s hard-pressed consumers.

“Many shopping centres began their year-end campaigns in November, dressing up in beautiful festive décor, helping shoppers by offering longer opening hours, presenting fun seasonal entertainment, offering big competition prizes and, of course, the all-time favourite attraction of photos with Father Christmas,” says Stops.

There were also many less glamourous preparations to ensure a pleasant shopping experience, even at the busiest times. This included increased cleaning, security and parking support. Fostering a safe festive season in places where many South Africans gather, there was also increased visible policing from the SAPS at shopping centres across the country.

Trends show South Africans left shopping to the very last minute, according to Stops. “The 23rd and 24th December were the busiest shopping days at many malls. However, several shopping centres, especially those in seaside cities, showed peak shopping and parking on Friday, 19 December,” she points out.

“Interestingly, some malls are also telling us the US retail phenomenon of Black Friday made a blip on sales charts at the end of November,” says Stops. “It was the first year the local retail sector took part in the retail event in any meaningful way, and it will be interesting to see if this trend continues in 2016.”

Stops reports the value for money and having an enjoyable experience were at the top of shoppers’ wish lists for the 2015 festive season.

Family and community were two strong themes at the country’s malls this festive season.

“Many families get to enjoy precious time together during the holidays, so many shopping centres place a strong emphasis on providing attractions for children and adults of all ages to enjoy,” says Stops.

With the season being a time for giving, community projects are also at the heart of most shopping centres’ festive campaigns. “Many shopping centres partner with local charities for a gift-wrapping service to raise funds to boost good work in their communities, or collect gifts for the disadvantaged.”

The SACSC is the official umbrella body of all involved in shopping centres, including: owners, developers, managing agents, brokers, professionals, retailers, marketers, service providers, financiers and researchers. It was officially launched in 1991 to advance the retail and retail property sectors of South Africa.

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My Office News Ⓒ 2017 - Designed by A Collective


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