AI won’t replace market research. But it will expose weak strategy
Much of the broader conversation around AI in market research assumes conditions that do not consistently exist across many African markets, writes Soyinka Witness.
CONSUMER TRENDS
Optimism and ‘conscious consumerism’ among key African trends – study
By our African Marketing Confederation News Team | 2024
Latest Ipsos Global Trends report reveals a stark contrast between African consumers’ optimism and general global scepticism.
As the world grapples with economic uncertainty, inflation and the cost of living, African consumers are charting their own course, maintaining a sense of optimism and demonstrating unique perspectives on brand loyalty, environmental consciousness and digital engagement.
These insights come from the latest Ipsos Global Trends study, which surveyed consumers across 50 countries – including several African nations.
The study reveals a contrast between African optimism and global scepticism. While only 44% of global respondents express optimism about their country’s future, close to 6 in 10 (57%) online African respondents maintain a positive outlook.
This optimism, however, is tempered by financial prudence. A total of 85% of African respondents emphasise the importance of saving for an uncertain future. This cautious approach to finances suggests a population that has learned to hope for the best while preparing for challenges.
African consumers are more optimistic. Photo: Kriss L from Pexels
“These results paint a nuanced picture of African consumers. While they maintain a positive outlook, they’re also pragmatic about their finances. This combination of optimism and caution creates a unique consumer landscape,” comments Busisiwe Mahlaba, Client Officer at Ipsos in South Africa.
Africans are willing to pay more for brands that act responsibly
Africans are more likely to choose brands that match their values, with 82% of Africans reportedly choosing brands that reflect their personal values, compared to 70% globally. Moreover, 77% of Africans are willing to pay more for brands that act responsibly.
“African consumers are increasingly using their purchasing power to express their values,” Mahlaba explains. “This trend towards conscious consumerism is particularly pronounced in Africa, outpacing global averages.”
The study also sheds light on the perception of global versus local brands. Interestingly, 57% of Africans believe that global brands make better products than local ones. However, 72% of African respondents to the online survey said they are willing to pay more for locally produced products.
“This presents a complex landscape for both international and local businesses to navigate,” Mahlaba notes. “While there’s a belief in the quality of global brands, there’s also a strong desire to support local production. Successful brands will need to find a way to bridge this gap.”
African consumers are leading the way when it comes to trying new things. A total of 62% of African respondents say they are usually the first among their friends to try out new things, compared to a global average of 46%.
“This willingness to embrace new products and experiences presents an opportunity for innovative brands in the African market,” Mahlaba notes. “However, it’s crucial to remember that these same consumers are value-conscious and increasingly concerned about social and environmental responsibility.”
You can download the full report here.
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