Category: retail

Posted on in retail

The impact of economic conditions on the retail market and different consumer segments

Different factors are driving a lot of retail behaviour at the moment, impacting the different segments’ behaviour from how they feel about retail, their shopping behaviour as well as their engagement with loyalty programmes.

Using its Eighty20 National Segmentation, Eighty20, a consumer strategy, analytics and research business, analysed the retail market ánd four consumer segments.

Table of contents:

  1. Mass Credit
  2. Middle Class
  3. Heavy Hitters
  4. Students and scholars

Consumer segments

1. Mass Credit

There are close to 10 million people in this segment, who are responsible for about R637bn in annual expenditure. With an average age of 36, their average personal income is just over R5,175 per month. About 80% of the segment have retail store accounts and 17% own a credit card.This segment is in survival mode, shopping less frequently and opting for bulk deals. Their decision on bulk buying deals is impacted by loadshedding. This segment is also downgrading brands, with cheaper options are being added to their shopping carts. The Mass Credit market is less loyal to retailers, as finding the best deal is crucial.


They are visiting malls less frequently and are extremely focused on comparative shopping. Loyalty programmes have become a huge part of their shopping behaviour and they are affiliated to almost every loyalty card. Loyalty programmes are a means of financial relief and they find themselves reliant on all notifications for the best deals via SMS, social media or apps.

2. Middle Class

Family Walking Along Street With Shopping Bags

There are close to four million people in this segment, who are responsible for about R754bn in annual expenditure. Their average age is 40 and they have a personal income of around R14,591 per month, with a household income of nearly R25,000. They hold roughly 30% of all home and VAF loans in South Africa, but only 20% by value.

This segment is feeling the pressure of the current economics as well as the safety and security of the country. The Middle Class is also opting to do a lot more online shopping as it’s more convenient.These customers are shopping for smaller baskets – less luxuries and more essentials – careful to account for loadshedding in their product choices.
Online shopping is viewed as highly convenient as they don’t need to leave home, they are getting the best deals which saves them both time and money. They value Pick n Pay Smart Shopper, Checkers Xtra Savings and other loyalty programmes, especially those with fuel partnerships.

3. Heavy Hitters

There are close to three million people in this segment, who are responsible for about R1.5tn in annual expenditure. This segment makes up the wealthiest 5% of the country. Two-thirds of this segment is made up of families, with an average age 44 and an average personal income of R45,512 per month.
This segment holds more than half of all home loans and VAF in South Africa, but 76% of home loans and 69% of VAF by value. Growth in these credit products has been low at 11% YoY.
Overall Heavy Hitters are conscious about their spend and are increasingly planning and budgeting their expenses. This segment is prioritising groceries, with luxuries or treats coming in second.
This segment views big shopping centres as a huge temptation – so the focus is increasingly on planned shopping trips within proximity to where they reside.Big shopping malls are still popular for end-of-season sales and entertainment. They also love loyalty programmes where there is a cross-pollination of retail and fuel.


4. Students and scholars

There are close to eight million people in this segment, who are responsible for about R82bn in annual expenditure. Their average age is 18, with an average personal income of just over R2,100 per month. This segment has very little credit – mainly retail and unsecured – with the rate of new defaults double the overall population.
With fewer responsibilities and expenses this segment is not feeling the pressure as much as their older counterparts. They prefer in-store shopping to buy the best products as opposed to online app deals, not price-sensitive deals.
In terms of loyalty, the fuss-free ones like Seattle Coffee are a winner as it requires very little effort and spending per unit is low.
There are close to three million people in this segment, who are responsible for about R1.5tn in annual expenditure. This segment makes up the wealthiest 5% of the country. Two-thirds of this segment is made up of families, with an average age 44 and an average personal income of R45,512 per month.
This segm

Pressure on the consumer

Many factors are putting pressure on the consumer. This is best observed in the sharp increase in credit default over the last six months.

Particularly worrying is the increase in default for home loans and VAF. Together these two types of credit account for more than 70% of total loan balances.

“It is evident that the current economic landscape has impacted the frequency of shopping trips, basket size as well as a key focus on prioritising essential grocery items.

“Comparative shopping and bargain hunting is driving a lot of retail behaviour at the moment, with retailers needing to be smart with their promotions, ranging and online presence to attract additional and retain existing spend,” says Steve Burnstone, CEO at Eighty20.

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://shop.shopshipshake.com/shop/register/business

This article originates from: https://www.bizcommunity.com/Article/196/168/240887.html

Posted on in e-commercce, retail

New rules for plastics and packaging in South Africa

The South African Bureau of Standards (SABS) is introducing new certification regulations for plastics in South Africa, as it moves to clamp down on packaging that makes vague claims of being “environmentally safe”.

Dr Sadhvir Bissoon, the acting CEO of the Bureau, said that the new regulations expressly caution against vague environment claims such as ‘environmentally safe’, ‘environmentally friendly, ‘earth friendly’, ‘non-polluting’, ‘green’, ‘ozone friendly, ‘plastic free’ etc.

“Manufacturers that wish to claim their plastic packaging are degradable need to subject the packaging to the relevant testing and certification requirements,” Bissoon said.

The newly published standard is listed as the South African National Standard (SANS) 1728. Under the new standard, packaging and plastics will have to bear new labels identifying the type of plastic they’re composed of, and whether or not they are degradable.

“Degradable plastics include but are not limited to biodegradable, compostable, oxo-biodegradable and water-soluble plastics,” said Bissoon.

SABS said that consumers will need to learn to recognise the correct markings and to be aware that any product that claims to have biodegradable plastic packaging needs to be verified according to the standard, which is aligned with global requirements, said the CEO.

SANS 1728 further requires that the plastic material used in the packaging must be presented on the packaging, using a material identification code from 1-7, and contained in a triangle.

  • 1 = PET (polyethene terephthalate)
  • 2 = PEHD (High-density polyethene)
  • 3 = PVC (Polyvinyl chloride)
  • 4 = PELD (Low-density polyethene)
  • 5 = PP (Polypropylene)
  • 6 = PS (Polystyrene)
  • 7 = all other materials (e.g. ABS, PLA, SAN, etc.)

The new standard brings South Africa more in line with international practices, the SABS said.

According to the World Wide Fund for Nature (WWF), South Africa generates 2.4 million tons of plastic waste every year.

“This means that every South African contributes about 41kgs of plastic waste per year, and about 14% is recycled,” said Bissoon.

The South African Bureau of Standards (SABS), together with other national standards bodies and standardisation forums, continue to work to provide standards and guidelines for environmentally friendly production and processing of plastics and plastic products.

Recycling signs on products are important as they inform consumers about how to properly dispose of the product, reducing waste and promoting sustainability.

Should the plastic packaging be of a degradable nature, it will be indicated below the triangle, as illustrated below (extract from SANS 1728):

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://shop.shopshipshake.com/shop/register/business

Reference : https://www.supermarket.co.za/news-article.asp?ID=13799&CatTags=8-Going%20green

Posted on in retail

Easter retail expectation for 2023 in SA

According to new research by the Bureau of Market Research (BMR), South African retailers are forecast to ring up additional retail sales value of R908m for the 2023 Easter season, down from the R923m in extra sales generated over the same period in 2022.

However, the forecasts reveal strong revenue generation opportunities for agile retailers that capitalise on consumers’ demand for sweet treats and discounted essentials.

The research, conducted on behalf of fintech funder Capital Connect, reflects the financial strain consumers are taking in a difficult economic climate. For retailers to boost profits, they will need to think outside the box to benefit from the Easter peak trading season, says Capital Connect.

Retailers in pharmaceutical and medical goods, cosmetics and toiletries are forecast to be among the winners, with additional Easter sales of R113m, up from R89m in 2022. Retailers in textiles, clothing, footwear and leather goods are also expected to do well, with additional sales value jumping from R155m in 2022 to R236m this year.

Retailers in pharmaceutical and medical goods, cosmetics and toiletries are expected to benefit because they have diversified their product and service ranges to include groceries, appliances, gifts, sweets and confectionery, clothing and footwear and even spa services. General dealers, by contrast, are coming under pressure from increased competition and consumers cutting discretionary spending.

General dealers are expected to take a knock from a decrease in consumer confidence, with additional sales value for this sector expected to drop from R346m over the 2022 Easter period to R278m this year. Specialised food, beverages and tobacco retailers will see additional sales value dip from R296m in 2022 to R226m this year.

Despite the fall in additional retail value forecast for general dealers, they are still forecast to claim around 30% of additional sales for Easter 2023. Food, beverages and tobacco retailers are expected to obtain only 9% of total retail expenditure during 2023, but are projected to claim 25% of total additional sales during Easter 2023.

Extended Easter sales period

Says professor Carel van Aardt, research director at the BMR: “Retail sales for Easter 2023 are forecast to hold up relatively well, given high levels of consumer financial vulnerability and low levels of consumer confidence. Despite the economic pressures they face, consumers are still interested in what they could gain from Easter sales this year.

“It is interesting to note that the Easter sales period seems to be getting longer each year, in much the same way as the Black Friday promotional period has. During 2020, consumer interest in the Easter season was strong for 35 days from 8 March 2020 to 12 April 2020. This year, we’re expecting to see this interest last for as long as 46 days, meaning retailers will enjoy foot traffic for a longer period.”

Gerhard le Roux, national head of capital growth at Capital Connect, adds: “The new research from BMR reflects a few important megatrends which should make retailers sit up and pay attention. It’s clear that retailers across the board are diversifying to maintain and grow revenues, which means that every retail SMB needs to be flexible and innovative to get their share of the Easter profit pie.

“Furthermore, consumers are becoming ever-more price sensitive and continue to reduce spending on luxuries. Pricing strategy and specials are more important than ever to remain relevant. Finally, the BMR forecasts that consumers will expect to be able to shop when, how and where they please – whether that’s in-store, online or click-and-collect.”

Tips for retailers

Capital Connect shares the following tips for retailers to thrive this upcoming Easter:

  • Diversify product ranges to offer more choice and compensate for consumers cutting spending on certain luxuries;
  • Extend store hours to maximise opportunities to win business;
  • Use loyalty cards and rewards schemes to encourage repeat purchases;
  • Use discount-oriented marketing and door-buster specials to entice consumers into stores;
  • Give consumers an experience in the store, such as Easter treats in the coffee shop, an Easter bunny for kids, or cooking and baking classes to prepare a five-star Easter family meal, to give them a reason to visit.

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://shop.shopshipshake.com/shop/register/business

Reference : https://www.bizcommunity.com/Article/196/168/237297.html

Posted on in Build your business, retail

Six Wholesale Strategy Tips for Retail

Wholesale is a significant source of sales revenue for many retail brands. Bulk selling products can help your business distribute your items to new regions and sell to customers it might not be able to reach otherwise.

Wholesale is also a widely used and ever-expanding sales technique. According to the US Census Bureau, wholesale inventories reached $932.9 billion in December 2022, while the global wholesale market is expected to grow to $65,613.18 billion in 2026, at a compound annual growth rate (CAGR) of 9.1%. 

Not sure where to start with your own wholesale strategy? Learn how to give your business a boost and increase sales revenue with these wholesale strategy tips for executing and managing bulk selling customer relationships.

What is a wholesale strategy? 

If you want to sell your products to other retailers in the hopes of growing your brand faster, a wholesale strategy is a must. But what does it entail exactly?

Wholesaling products typically involves selling larger quantities of products at a lower price than you’d sell them directly to consumers via your website or brick-and-mortar store.

The wholesale buyer then sells your products to its customers via its retail store or other sales channels. 

Developing a wholesale strategy can help you build brand awareness faster than if you only sell products via your website, at events, or via one retail store location.

If your margins are too low, it will be impossible to survive. 

1. Define your target market

The first step in creating a wholesale strategy is deciding to whom you want to sell. Do you envision your products sitting on shelves at department stores, specialty retailers, discount stores, or online shops? What kind of wholesale vendor makes sense both for your business and your own target customers?

Look at the type of items each store carries and make sure your products fit their mix. If you sell denim, you don’t want to spend time prospecting potential wholesale clients that only sell swimsuits.

2. Set your sales goals and budget

Creating quarterly sales projections can help you stay focused and work toward your goals. It can also help you understand what you can afford in terms of operating expenses—the saying that it takes money to make money is accurate when it comes to growing your brand and increasing sales revenue.

How many units are you hoping to sell each quarter? What is your forecasted quarterly sales revenue, and what will you have to spend to reach those goals? A few things you might consider budgeting for include:

  • An independent sales representative (or multiple representatives who cover different regions)
  • A showroom that works with various retailers in your target market
  • Trade shows focused on building relationships with your target market
  • An in-house sales representative to help drive your wholesale marketing efforts

Be sure to crunch the numbers and understand how much revenue you need to bring in to cover your operating expenses and still make a profit.

3. Manage your customer relationships

Existing and prospective customer relationships can be tracked with a spreadsheet or a third-party customer-relationship manager (CRM) like SalesForce or Insightly.

A spreadsheet can include the following columns:

  • Store Name
  • Buyer Name
  • Email Address
  • Website
  • Phone Number
  • Address
  • Status (the last time you followed up and next steps to be taken)
  • Notes

4. Create a website

Even if you don’t plan to sell your products directly to consumers, creating a simple website with your branding, logo, and product photos and descriptions will make it easier for potential wholesale buyers to get familiar with your brand. And if you also sell DTC, use Shopify to manage all your sales channels—online, in-store, and wholesale—from one place. With the Shopify Plus plan you can set up a wholesale channel where buyers can submit their orders for you to review, or they can pay for their products at the checkout within your wholesale store.

Having a website also makes it easier for potential wholesale buyers to find your brand through Google search, making it a great tool to help you grow your wholesale business. 

5. Find buyers and connect with them

There will likely be a countless number of potential buyers for your product, so start with a list of your top 10. From there, working in increments of 10 or 20 at a time will make the task less daunting.

As you work through the first 10, you’ll learn more about what approaches get you the positive response you want and which ones don’t.

Follow these steps to find and approach potential wholesale buyers: 

Step 1: Who do you want to connect with?

You may already have a list of stores you want to sell to, but there are a few easy ways to expand that list:

  • Create Google Alerts that notify you of stores or boutiques that carry products similar to yours. For example, if you want to find boutiques in New York City that carry eco-friendly activewear, you can search “Eco-friendly Activewear Boutique New York City.”
  • Check your competitors’ websites for lists of the retailers they work with (also known as a “stockists” page) and use those names as leads (see Step 2 below for a how-to).
  • Walk or drive around your neighborhood and surrounding area looking for stores that might carry your product. Hand out business cards and request contact information for the store’s buyer so you have a name to follow up with.

Step 2: Survey your network for connections

Before you start reaching out to buyers, see if you know someone who knows or has a connection with anyone on your list. You can start by searching the buyer’s name on LinkedIn and looking for common connections.

You also can send prospective buyers a direct message or email letting them know you’d like to connect and share more about your brand. Some retailer websites will list contact information, but you may have to settle for a general mailbox if the buyer’s address isn’t listed publicly. Be sure your subject line includes “ATTN: Buyer,” the store name, and your brand name to make conversations easier to track.

Another option for prospecting smaller retail stores is to interact with their social media channels like Instagram and Facebook. In many cases, small boutique owners manage their own social media. Spend a few days or weeks engaging with their content, and send them a direct message introducing yourself—this might help you make a warm introduction versus a cold email that comes out of the blue.

When you’re ready to send emails out to buyers, you can start with a template similar to this one:

Hello [buyer name],

My name is [insert your name]. I’m the founder of [link your brand name]. I found your shop on Instagram [link your Instagram]. Thank you for getting back to me and providing me with your email address.

I’ve been following you for a while and love your product assortment. I’m hoping to connect with you to share more about my brand—I think your customers might like it.

[Include a quick brand bio—three sentences at the most—and tell the buyer why your brand is different.]

I have attached our line sheets for your review and would be happy to tell you more about [your brand name] over the phone. Do you have availability this week or next?

I’d also be happy to send you a few samples of our bestselling styles for review if you’re interested.

Please feel free to call me at [your phone number] if you have any questions.

All my best,

[your name]

Step 3: Be persistent

The most powerful tool in your wholesale strategy is persistence: You’re going to get many rejections before, during, and even after you get a yes. Self-promotion can be difficult, but if you stick with it and continue to follow-up with buyers, you should eventually start to see your hard work pay off.

If a buyer isn’t interested immediately, it doesn’t mean they won’t be interested in the future.

If they say no but you truly believe your product would make a great addition to their store, you can respond with the following email:

Hello [buyer name],

Thank you so much for getting back to me to let me know you’re not taking on new brands at this time. If it’s OK with you, I’d love to keep in touch and share my new product launches with you as they occur.

If anything should change on your side, please feel free to email or call me at [your phone number].

All my best,

[your name]

Include the phrase “Follow Up” in your subject line—it alerts the receiver that you’ve attempted to connect before, and should result in more responses.

6. Get on the road

Once you’ve connected with retailers, see if you can make appointments with a number of buyers in the same region to show them your products in person. Pack up your samples and schedule time to meet with each retailer you’d like to build a relationship with—this is sometimes referred to as “road sales.”

Attending trade shows is another good way to meet buyers on the road. Be sure to make connections with buyers before a show, and to follow up after.

If you’d like to cover an area broader than your immediate region, you can look into hiring outside sales representatives.

Moving forward with your wholesale strategy

An important takeaway for any customer acquisition strategy is to build relationships. If people feel a connection to you and your story, they will feel a connection to your brand, and they’ll want to support it. Using the wholesale strategy tips listed above will help you stay organized so you can focus on nurturing customer relationships and achieving your goals.

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:  blog.shopshipshake.com. If you are interested in cooperating with us. Please register on: https://shop.shopshipshake.com/shop/register/business

Reference : https://www.shopify.com/ph/retail/wholesale-strategy-for-retail