The truth about the black consumer market

The 28-man delegation visited a number of local businesses, community-based development projects and the Attlyn Shopping Centre, chatting with emerging business leaders, local movers and shakers and role players, shop managers, and ordinary members of the community to see for themselves and assess the realities on the ground on Wednesday 24 January 2007.

Four decades of racial discrimination created an unequal and unjust society in South Africa, where most of the people - black, powerless and moneyless - lived in the margins of society, while the bulk of wealth and financial resources lay in the coffers of a relatively small and white population.

Soaring spending power

But extensive research has just shown that some black people now have a soaring spending power and disposable income - and lots of it! The rise of two million 'black diamonds' (snob black middle class) among the 21.9 million black consumers is living proof of this social revolution. Dr Azar Jammine, chief economist with Econometrix, has also acknowledged that a couple of black LSMs have systematically jumped in the last few years, with no indication of stopping.

However, for some conservative marketers and advertisers - mostly white - townships are still the bastions of poverty, crime and grime where nothing good comes out of them. As a result, most of them have lost touch with the realities on the ground.

"Because of our sad past, most marketers and advertisers have lost touch with the black market, not knowing that serious changes are taking place in the lives of these people," Maphai told Bizcommunity.com in the sidelines of the tour.

Full of optimism

"We at the SABC Radio, talking to over 19 million people every day, we have come with this unique programme that will shed a light about the misunderstood, negatively stereotyped black consumer market. And this is just the beginning of a long and aggressive campaign," he said, full of optimism.

Atteridgeville is a relatively neat, calm and intellectually-minded township with a population of just over 200 000 people. It is also a home of black achievers such as Constitutional Court Judge Digkang Moseneke, Telkom CEO Papy Molotsane and former South African Olympics medal hopeful Sydney Maree. No wonder why the literacy rate is about 70%.

"The question marketers should be asking themselves is which brands will this market be buying when they are certified black diamonds?" Maphai wondered. "As basic consumer trends repeatedly indicate, consumers buy brands they have an affinity with. Brands should begin building relationships with market now to guarantee a place in their cupboards and tables and, most importantly, in their hearts."

The Truth Campaign Programme was launched by the SABC Radio in Joburg in June 2006 and in Cape Town in August 2006. It consists of trips to well and lesser known townships around SA, during which delegates get to socialise with various communities, visit people's homes to see actual product stages, media consumption highlights and short Q&A presentations from small and large business owners and seeing how the retail environment works.

Valuable experience

Asked to comment about the tour, Zakiyah Khan, Standard Bank marketing manager (personal and business banking), said: "I am really impressed. This is a very valuable experience, which makes you get rid of all these negative assumptions about the market and gives you a better insight. It also helps you get a general idea about these people's needs, dislikes and likes.

"We cannot keep assuming. We must go out there and find for ourselves so that we can market in the right language, style, strategy and with the appropriate product.

"Let's not undermine the influence the communities have on each other. Communities are likely to believe each other than believe in the bank. So if you go into this kind of market, make sure that you make a good impression," Khan concluded.

For more information on how to be part of the Truth Experience Tour, email or call +27 (0)11 714 7387.