Issued by: UCT Unilever Institute of Strategic Marketing


These findings form part of the latest research by UCT Unilever Institute of Strategic Marketing and TNS Research Surveys into SA's black middle class, commonly referred to as Black Diamonds^TM. The Black Diamond^TM studies are widely recognised as the definitive research into SA's growing black middle class and the latest study dispels many myths about their current status quo.

In the 12 months since the last study was conducted, black South Africans who are categorised as middle class now number three million people, representing a 15% growth rate since 2007, says Professor John Simpson, Director of the UCT Unilever Institute.

Despite dire predictions that this sector of society is facing a financial melt-down due to debt pressure, the opposite is true, reveals Simpson. “The most astounding evidence of their financial resilience can be seen in a 39% increase in spending power - from R180 billion in 2007 to R250 billion this year,” explains Simpson.

Rudo Maponga, Black Diamond^TM Research Manager at TNS Research Surveys, says while it may appear that there has been a slowdown in this market's growth in terms of number of people, (from 30% in 2007 to 15% in 2008), this fall should be seen in context. “We are working off a bigger base, which means that growth will inevitably slow in percentage terms. What's also significant it is that despite the downturn, their spending power has continued to grow, which suggests that this segment is also becoming wealthier,” she says.

Black Diamond^TM Women
The main focus this year's study was on the role of women and how their economic empowerment is affecting traditional gender roles in Black Diamond households. Of particular interest to local business is that Black Diamond women represent over 40% of all female consumer spending power - an estimated R120 billion.

According to UCT Unilever Institute's Professor Simpson, Black Diamond^TM women are becoming a force to be reckoned with. “Due to economic empowerment, many women respondents revealed that their earning power had a significant impact on decision-making when it comes to making purchases - not only for purchases such as grocery shopping, which one may expect, but with regard to much larger purchases such as household appliances, investments and cars,” Simpson added.

The study also investigated changing consumer mindsets and the impact this was having on buying behaviour, explains Maponga. “Almost half of the women interviewed for the study said they earned over 50% of the household income, whilst over 80% said they were the main household decision-maker when it came to the majority of purchases. This is resulting in a shift in gender roles,” she says.

There appear to be several factors responsible for this shift. The research indicates that these women are different in that their aspirations are higher than their mothers and grandmothers. Democracy and the accompanying legislation have given women the opportunity to be more ambitious and have paved the way for women to choose from a vast array of careers which were just not available to black South African, especially women, during apartheid.

The UCT Unilever Institute and TNS Research Surveys will be holding Black Diamond 2008 seminars in Johannesburg, Durban and Cape Town in the last week of October. For more information visit www.unileverinstitute.co.za.

Visit our PRESS OFFICE: The UCT Unilever Institute of Strategic Marketing (established 1999) is a non-profit organisation based at the University of Cape Town, School of Management Studies. The Institute is largely funded by the Unilever Foundation for Education and Development.- more....

[13 Oct 2008 11:26]

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