Cash-strapped consumers continue to embrace private retail brands

By our News Team | 2022

There has been a 27% increase in positive price perception of in-house brands over the past year, industry expert says.

Private brands have grown significantly in the South African market, both in sales and customer confidence, with 98% of local customers buying private brand items, 64% of whom purchase them every time they shop.

Perceptions of the quality and value of the private label are shifting too. When compared with last year’s Private Brands survey by international retail specialist Daymon, there has been a 27% increase in positive price perception of private brands, a 10% increase in quality, and a 4% increase in the view of consumers that private brands better suit their needs.

Private Brands

Photo by Pixabay

In an article published on the Trade Intelligence website, Roelien Havenga, Director of Business Intelligence for Africa and Latin America at Daymon, says that private brands are no longer being seen as the low-cost option, but as a value brand. Two key factors driving this are increased affordability and increased quality.

From a retailers’ perspective, a private brand can be a key driver in getting customers into the store. The benefits to retailers are threefold:


Having a differentiated offer from competitors stocking the same national brand.


This differentiation may lead to loyalty as customers know they can buy this brand only from this specific retailer.

3.Margin Management

As the private brand sits within the retailer, they can more easily determine the affordability and margin of the product.

“For South African customers surveyed, who mainly focus on price (62%), there are a few key factors to consider, primarily that their base decision is driven by price,” Havenga says.

“They prefer to buy the lowest price on the shelf and constantly look for promotions. [However], this is not necessarily [true] in all categories, especially where categories have a solid brand presence and high brand loyalty with well-known national brands. 

“Customers are increasingly brand agnostic, driven by better-priced and quality products outside of national brands, and it is here where private brands will continue to win.”

Read the full article here.

Dr Kin Kariisa

Group CEO - Next Media

Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

  • Other current and previous roles played by Dr Kin Kariisa:
  • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
  • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
  • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
  • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
  • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.