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Bryce Carter
Geraldine Torres De Alba
July Crawford

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Do consumers experience buyers remorse in your country?

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Do consumers experience buyers remorse in your country?

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When you buy goods or services from a salesperson who comes to your door or into your house, you have 10 days from the day you get the written agreement to cancel it. This legislation is in effect in the majority of provinces, including Ontario, British Columbia, Alberta, and Quebec.

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We've all been there - we swipe our credit card or sign on the dotted line to complete a long-coveted (or impulse) purchase only to realize a minute, a day or a week later that we've made a mistake. Either the purchase doesn't meet our expectations, we realize we can't afford it or we decide that money would have been better spent elsewhere.

Thankfully in a great many cases, company policies and provincial laws protect us from having to live with the regret of hasty or misinformed decisions. Collectively known as Buyer's Remorse Rules, these regulations provide a cooling off period for consumers to reconsider their purchases and ensure they fit within their budgets and meet their needs.

Understanding Buyer's Remorse Rules

The most basic buyer's remorse rules are the one's you encounter when you purchase a product at a retailer with a return policy. You generally have a prescribed timeframe, typically 30 days, to reassess your purchase. If the product doesn't fit the intended use or isn't what you expected, you can return the item for a full refund.

It's important to use this time to consider any purchase and decide whether it fulfills your intended need. Was it something you required, or did you buy it on impulse? If it's the latter, and you determine you truly can't afford it, there's still an opportunity to reverse the transaction.

Buyer's Remorse Laws

It's important to understand that retail return policies aren't the only buyer's remorse rules you'll encounter. In fact, each province has specific legislation governing the cancellation of contracts you enter; though these are typically not as well-known, and vendors will likely not disclose this at the point of sale.

Below are some common buyer's remorse laws in the province of Ontario. In each case, the cooling-off period varies, and you must submit your cancellation in writing - either by email or registered mail.

Purchases from door-to-door salespeople

When you purchase products or services from a salesperson at your door or in your home, you'll have 10 days from receipt of the written agreement to cancel it. This law exists in most provinces, including Ontario, British Columbia, Albert and Quebec.

Advance payments for fitness or gym memberships

If you prepay for personal development services such as a gym membership, you have 10 days from signing the contract to cancel for a full refund. While the same in B.C., Nova Scotia's cooling off period is only five days, so it's important to know what the rules are in your jurisdiction.

Payday loans

Payday loans are usually of small value and generally due on your next payday or the following. In many provinces, including Ontario, British Columbia and New Brunswick, you have two days to cancel the contract without any penalty.

Purchasing a newly built condominium unit

You have 10 days from receipt of the fully signed purchase and sale agreement or the disclosure agreement (whichever comes later) for a newly built condo to terminate the purchase agreement. In other provinces, such as B.C. and Manitoba, the cooling off period is only seven days.

Purchasing a timeshare

Buyer's remorse laws governing timeshares are slightly more involved, but similar to newly built condominium units. You have a 10-day cooling off period from initial sign up to cancel without reason. You may also terminate the agreement within a year if you do not receive a copy of the contract in writing or if the contract is missing key information required by the Consumer Protection Act.

Protect Yourself

Each province has its own buyer's remorse laws which apply to different services and products. Before you enter into any contract, check with your consumer protection agency to learn what they are and how they operate; it could save you from issues or regrets in the initial states of the agreement. If you act in a timely manner, the law may be on your side - allowing you to cancel and save a substantial amount of money.

Life-Changing Debt Solutions

If you're suffering from buyer's remorse and unsustainable debt from one or more purchases, know the feeling doesn't have to be permanent and you are not alone. An MNP Licensed Insolvency Trustee may be able to connect you with Life-Changing Debt Solutions and the financial fresh start you deserve. During a Free Confidential Consultation, they will review your financial history, explain your options and help you make the best choice for your unique situation. Whether you qualify for bankruptcy, a Consumer Proposal or one of several other options, they can help you get on track to defeating your debt for good.

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Buyer's Remorse Laws Can Help You Stay Out Of Debt

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We've all been there - we swipe our credit card or sign on the dotted line to complete a long-coveted (or impulse) purchase only to realize a minute, a day or a week later that we've made a mistake.

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Do consumers feel Buyer's remorse in Australia???

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Do consumers feel Buyer's remorse in Australia???

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As said earlier, Australians love to shop more indoors and also in the research below "Under the Australian Consumer Law, the customer is only entitled to a refund or replacement for a major problem with a product covered by consumer guarantees", Australians and New Zealand won't really have that much of a Buyer's remorse and also as comparable to the United States and also how
they would want to purchase items and help the companies selling products. "Instead, shoppers should consider spending those hard-earned dollars on experiences and outings – like an overseas holiday, or concert tickets. One in four respondents said they can’t go without event-based experiences, such as nights out with friends, going to the theatre, heading to a sporting match or eating out at a restaurant."

https://www.consumer.vic.gov.au/products-and-services/business-practices/store-policies/change-of-mind
https://thenewdaily.com.au/finance/consumer/2018/12/27/australian-shopping-best-buys/

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Gabrielle Gowen
Brandon Lowe
Dione Munnings
Matthew Costello

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4) Do consumers experience buyers remorse in your country?

Since France is so big with consumption and consumers purchasing products, they are worried about the quality and sustainability of said products. It is said that France has went through changes for consumption and is trying to improve and reduce the impact of it. "the French feel concerned about “responsible consumption” and claim that they have changed some of their practices and 13% say they are doing everything possible to reduce the impact of their consumption. This includes a growing interest in "sustainable" products: organic, local, natural, without parabens or preservatives" (santandertrade.com).
Therefore, consumers in France are likely to have buyer's remorse often if the quality of their product is not sustainable. https://santandertrade.com/en/portal/analyse-markets/france/reaching-the-consumers

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Buying Behavior in Australia by Shashwat Sreenivasan, Leah and Joemar

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Buying Behavior in Australia by Shashwat Sreenivasan, Leah and Joemar

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What else should we know about your country's buying behavior?

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What else should we know about your country's buying behavior?

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A lot of Australians love to go grocery shopping on a regular basis and the gender division is almost even on consumers on grocery stores. Men are at 46%, while women stand at 54% of consumers at grocery stores. When it comes to retail shopping in Australia though, women have a large majority of those shoppers at 70%, while men are only at 30%.
https://www.mmaglobal.com/research/consumer-behaviour-research-australian-shoppers-adnear

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How do consumers in your country typically make purchase decisions (impulse buying or planned / do they conduct research)?

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How do consumers in your country typically make purchase decisions (impulse buying or planned / do they conduct research)?

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In Australia, more than half of the consumers purchase items on a regular basis, go off of impulse and buy things without research. This number is around 62%, and if their is a big discount, that number rises from 62% to 77%
https://www.wmegroup.com.au/blog/impulse-buying-psychology-behind-sales/

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Do consumers in your country prefer to shop online or at brick-and-mortar stores?

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Do consumers in your country prefer to shop online or at brick-and-mortar stores?

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Consumers in Australia, in a normal year (without covid), would rather shop in a brick and mortar store than online. Around 79% of them would rather shop in person due to an enjoyable atmosphere.
https://insidesmallbusiness.com.au/marketing/australian-shoppers-prefer-a-brick-and-mortar-store-over-online

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What else should we know about your country's buying behavior?

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What else should we know about your country's buying behavior?

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Canadians make 156 shopping trips a year on average and pay $8,645 a year through all fast-moving consumer products (FMCG) outlets, which include food, pharmacy, mass merchandisers, and warehouse club shops. Not all provinces, though, are made equal.

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There are a multitude of factors that influence the way we shop and what leads us to make a purchase. Where consumers live is one of many factors that affects how much we spend, what channels we spend in, and how much we spend in each trip.

Canadian consumers make, on average, 156 shopping trips annually and spend $8,645 per year across all fast-moving consumer goods (FMCG) channels, which include grocery, drug, mass merchandisers, and warehouse club stores, among others. However, not all provinces are created equal.

Ontarians make fewer trips (152 per year) and spend 4% less than the average Canadian, with only $8,295 in annual FMCG purchases. Comparatively, their Albertan counterparts spend the most with $9,448 in annual purchases. But while consumers in Alberta are the biggest spenders, they are making fewer trips than the average consumer, with only 144 shopping trips annually.

How do consumers in Alberta spend more while also shopping less? They spend more each time they are in the store. During individual shopping trips, Albertans spend 18% more than the average Canadian, making their total basket worth $66. For retailers and manufacturers, that's a big basket to capture. But the right marketing techniques are important, as they have fewer opportunities to engage Albertan shoppers through in-store influences (e.g., promotions, price checking, merchandising, flyer, out of stock, etc.). Focusing marketing efforts on stocking up and bulk purchases could be a way to convince these shoppers to grow their baskets even further.

With FMCG shopping behavior varying across the country, retailers and manufactures need to adopt an action plan they can adjust for across the country's varying regions. One size does not fit all. Marketers can improve the effectiveness of their efforts if they develop and implement strategies that align with each region's distinct consumer shopping habits and preferences.

For example, on the other side of the spectrum from Alberta are consumers to the East (Quebec and the Maritimes), who spend only $52 per shopping trip. However, while these basket sizes are small, both have grown over the previous year, rising 2% in Quebec and 5% in the Maritimes. To better understand how location can drive shopping behaviors, we dove deeper into the consumer habits of the Quebecois. From languages spoken at home and work to the most visited retail channels, consumers in Quebec have distinct shopping preferences compared to the rest of Canada.

From Gatineau to Chicoutimi and Montreal, consumers in Quebec shop less in Mass Merchandisers than the rest of the country. On average, Quebec households have fewer members, which likely has a direct impact the number of shopping trips and dollars spent in these large-format stores. Compared to their neighbours to the West, Quebec households have fewer children. In fact, 79% of Quebec households having no kids, compared with 69% in Ontario. Furthermore, more households in Quebec are one-member households (32% in Quebec vs. 25% in Ontario). With fewer household members, they are more likely to have smaller homes. Shoppers' living conditions and whether or not they have room to stock up and store products influence what (and how much) they buy.

Adding to Quebec's differentiation is language, with 79% of the population's first language being French. Additionally, 71% of Quebecers only use French at home. Retailers and manufacturers looking to make a splash in the Quebec market should consider regional French language campaigns that will resonate with French-speaking consumers.

Quebec is a distinct province in Canada, but not the only one with regional differences. Regardless of the market(s) you are trying to 'win' in, get to know the cultural and regional characteristics that may affect consumer shopping behavior.

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Purchasing behavior characteristics across Canada - NielsenIQ

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There are a multitude of factors that influence the way we shop and what leads us to make a purchase. Where consumers live is one of many factors that affects how much we spend, what channels we spend in, and how much we spend in each trip.

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3) What else should we know about your country's buying behavior?

The average age of an ordinary ecommerce consumer in France is 35 to 49 and then followed by 25- to 34-year-olds. Online French buyers are usually sharp when it comes to tech and are confident in shopping online. While shopping French customers appreciate respect with clear info and swift delivery.

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How do consumers in your country typically make purchase decisions (impulse buying or planned / do they conduct research)?

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How do consumers in your country typically make purchase decisions (impulse buying or planned / do they conduct research)?

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They include all factors, the physical factors, social factors, and the reason you're buying that. It also depends on the buyers mood on whether they will purchase it or not.
https://2012books.lardbucket.org/books/marketing-principles-v1.0/s06-consumer-behavior-how-people-m.html

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by Nick Connett

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by Amalia Gonzalez, Hannah Hilal, Aryana Mack, and Calla Williams.

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What else should we know about your country's buying behavior? 

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What else should we know about your country's buying behavior? 

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People in Japan have been for the longest time predictable where they are going to make their purchases. They eschewed low-priced goods, liking the higher-end stores, because they are willing to pay the higher prices for good quality of products. But now they are looking towards saving more money instead of saving more time.
https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the-new-japanese-consumer#

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Do consumers experience buyers remorse in your country? 

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Do consumers experience buyers remorse in your country? 

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Yes, it is believed that people in Japan do in fact experience buyers remorse. Even while most do great research into what they are going to buy, sometimes they will miss deals or buy something which they feel remorseful about later.
https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the-new-japanese-consumer

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 How do consumers in your country typically make purchase decisions (impulse buying or planned / do they conduct research)?

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 How do consumers in your country typically make purchase decisions (impulse buying or planned / do they conduct research)?

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Japanese consumers tend to do more research and look for more quality good and are very brand loyal in a general sense.

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Reaching the Japanese consumer - Santandertrade.com

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Japanese consumer: consumer behaviour in Japan, marketing opportunities, consumer profile and his purchasing power, recourse to consumer credit and household consumption expenditure.

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Patrick Baker
Brandon Hill
Jack Middleton
Xavier Perez

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Do consumers in your country prefer to shop online or at brick-and-mortar stores?

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Do consumers in your country prefer to shop online or at brick-and-mortar stores?

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Retail in South Africa: 77% of consumers prefer online shopping to avoid crowds in-store.

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Published on 2020/12/02 by Sonia Navarrete

The retail industry in South Africa began to feel the pressure to meet profitability long before the COVID-19 pandemic hit our shores. The country was already in a recession, consumer spending was declining due to growing levels of unemployment and moving to an eCommerce model.

With one of the highest COVID-19 infection rates on the continent, the pandemic has raged war on the economy with GDP dropping even further 2020. The country's unemployment rate is at an all-time high rising to 30.8% in the third quarter of 2020 compared to 23.3% in 2019.

In addition, the retail industry in South Africa is also facing a change in shoppers' behaviour due to social distancing and staying safe at home. These variables have no doubt placed an enormous burden on retail businesses. They are needing to take an adapt-or-die approach to their survival.

To help brands better understand the trends at play, we asked over 1,000 consumers how the pandemic is changing the way they shop. The results show interesting insights. For example, how respondents discover new online shopping sites, and 51% of them using Social Media to purchase. (*see below for the full survey methodology).

Before the pandemic, retail businesses in South Africa were taking a slow and steady approach to digital transformation, but this has been accelerated dramatically as the pandemic rages across the globe forcing people to adapt to new ways of living.

In this article, we will reveal shoppers' preferences to help brands consider their online offering and adjust if necessary, in order to retain or boost sales.

Offering better eCommerce shopper experiences can set businesses apart from intensifying competition. One of the best indicators for shopper experience, is monitoring abandoned basket rates. It creates awareness of minor disruptions to their eCommerce experience that is resulting in them disengaging from and trying another site.

Food, drinks and fashion are the items most purchased online by South African consumers

It might sound obvious, but one of the first steps to becoming a successful retailer is knowing what your customers want to buy. The results of the research reveal that when looking at items that buyers are interested in purchasing online, there is an almost even split across consumable goods with fashion, food and beverages leading by a small margin.

When it comes to the world of online retail, it's not as simple as knowing what products to stock - you also need to know how customers prefer to interact with eCommerce platforms. Based off insights into the platforms consumers make use of when shopping online, the results suggest that it is critical merchants have multichannel functionality, with an even split across both desktops (PCs and laptops - 51%) and mobile devices (tablets and smartphones - 49%) that consumers make use of.

The results of the surveys show that mobile browser dominated the mobile shopping experience at 28% with a further breakdown as follows:

Fulfilment options are another important factor when it comes to attracting, converting and retaining customers. This is particularly relevant now when many people feel anxious about visiting public spaces.

Sixty percent of respondents said that they enlist the delivery option at least 1-2 times per week when shopping. The main reason, from 77% of respondents is to avoid contact with crowds in-store.

Many, about 49% said they like the convenience of online shopping and delivery as it saves time and hassle of having to do this physically. It is likely we'll see this trend continue post-pandemic.

One in five people did not use online delivery at all before COVID-19.

It is also critical to understand the frequency of online shopping, with a majority (55%) preferring to do this once to twice a week. This is followed by 22% who shop 3-5% a week and only 17% who said they did not use this method of shopping at all.

72% of South African shoppers prefer goods delivered to avoid contact with crowds in-store

Apart from the convenience and time saved, COVID-19 is clearly a factor. 72% stating they prefer to either pick up or have items delivered in a manner that allows them to avoid contact with crowds in-store.

While it appears, the pandemic has been a factor in motivating some people to use in-store or pick-up point delivery for the first time, the data suggests most will continue to do so after the pandemic is over. When asked about the likelihood of this occurring, 34% responded "highly likely" and 50% "likely".

Identifying shopper pain points

Beyond general preferences relating to device and fulfilment options, there are a range of issues that are highly likely to turn consumers off a brand. Effective inventory management should be a priority for businesses, as respondents rank "out of stock products" as their top pain point (61%).

Of course, some issues are outside of the merchant's control. Over six in 10 shoppers report that the inability to touch, feel or test products is a major issue for them when using eCommerce services. Implementing effective returns and refunds processes, however, should go some way to addressing this.

In addition, the results suggest that the accuracy and volume of the product information on-site are especially important. Over half of the respondents complained about the quality of products not being as described. Another 50% had encountered what they felt was misleading product photography and descriptions.

Retail in South Africa: 58% of shoppers are keen to try technologies like VR/AR

When asked what they would like to see improved, it appears that investment in innovative next-generation functionality is something the South African consumer love the idea of. 58% are keen to try new emerging technologies such as VR and AR, or virtual changing rooms, with only 6% saying adding this option would have a detrimental effect on their shopping experience.

The one thing most shoppers want to see is a greater focus on the basics, such as webpage loading speed, real-time stock checking or a smoother checkout experience. 81% said this would have a positive effect, 17% neutral and only 2% negative.

57% of people identified delayed or slow delivery as a challenge relating to eCommerce. And the research also found some circumstances in which respondents were prepared to wait. Over half (69%) confirmed they would be happy to wait longer for their orders if it was guaranteed products were both sourced and delivered sustainably.

Online retailers should refocus their attention on improving the core features and functionality that users expect as standard. With trends pointing towards fast adaptation of emerging technologies as well as a growing commitment to sustainability, they must be prepared to adapt too.

As the eCommerce space becomes increasingly crowded, it may be the crucial element that differentiates them from the competition. It can also mean meeting the changing needs of their market in these new and unprecedented times.

Looking for eCommerce software? Check out our catalogue

* Data for the GetApp SA Customer Experience Survey was collected in October 2020 from an online survey of 1,000 respondents that live in South Africa.

The survey data used for this article comes from 1,006 participants who qualified to answer. The information in this article corresponds to the average of all surveyed participants.

The criteria for participants is consumers who have made an online purchase in the last 6 - 12 months.

This article may refer to products, programs or services that are not available in your country, or that may be restricted under the laws or regulations of your country. We suggest that you consult the software provider directly for information regarding product availability and compliance with local laws.

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Retail in South Africa: 77% of consumers prefer online shopping

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Published on 2020/12/02 by Sonia Navarrete The retail industry in South Africa began to feel the pressure to meet profitability long before the COVID-19 pandemic hit our shores. The country was already in a recession, consumer spending was declining due to growing levels of unemployment and moving to an eCommerce model.

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4) Do consumers experience buyers remorse in your country?

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3) What else should we know about your country's buying behavior?

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2) How do consumers in your country typically make purchase decisions (impulse buying or planned / do they conduct research)?

Impulse buying is more uncommon of French Citizens and more logic is applied to thing before purchasing them. They do a decent amount of internal and external research along with though on whether the item is worth it or not.

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1) Do consumers in your country prefer to shop online or at brick-and-mortar stores?

France is a country the is bigger in the online shopping area rather than more brick-and-mortar stores despite those kind of stores still having success within france.

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Do consumers in your country prefer to shop online or at brick-and-mortar stores?

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Do consumers in your country prefer to shop online or at brick-and-mortar stores?

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Japanese E-commerce is booming with many people shopping online with sites such as Rakuten, Amazon, and Yahoo. An interesting fact is that more people in their mid to late 40s online shop than people in their early 20s!

People in japan also conduct research on whatever they are buying, which in turn would lead to less buyer's remorse in the long run
source:
https://apglobaltalent.com/japan-consumer-insights/

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 Do consumers in your country prefer to shop online or at brick-and-mortar stores?

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 Do consumers in your country prefer to shop online or at brick-and-mortar stores?

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Customers in Canada prefer to shop at brick-and-mortar stores rather than online. One of the reasons why is because they can look and touch the merchandise before purchasing the item.
https://www.retailcouncil.org/press-releases/myth-busting-study-shows-canadian-consumers-still-prefer-bricks-and-mortar-stores-but/

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How do consumers in your country typically make purchase decisions?

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How do consumers in your country typically make purchase decisions?

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They are heavily cautious when buying things since they are suffering from economic inflation.

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Over the past decade, more than three and a half million South Africans have been lifted out of extreme poverty. As of 2015, the country's consuming class grew to encompass about nine million households, accounting for $191 billion in private consumption. Yet, despite this expansion of the consumer pool, private consumption in South Africa has been growing at a fairly subdued annual rate of 2.8 percent over the past five years and a mere 1.6 percent in the past year-slower than Africa's other major economies.

South African consumers are under tremendous financial pressure due to higher prices (inflation has averaged 5.4 percent over the past five years, edging up to 6.4 percent in 2016) and low real growth in wages (averaging 1.3 percent in the past five years). To buy what they need, many South Africans have had to dig into savings or make purchases on credit.

Our recent survey of 1,000 South African consumers confirms that most of them are indeed concerned about their financial prospects and thus holding back spending. Almost 70 percent of respondents said they worry about imminent job loss. More than half said they are living paycheck to paycheck. No surprise, then, that they are cutting back on spending, delaying purchases, and shopping around for the best deals.

The South African survey was part of our global survey involving more than 22,000 respondents from 26 countries (see sidebar, "Our survey methodology"). Our aim was to understand how consumers feel about their financial prospects and how these sentiments are affecting their buying behavior. The insights we gleaned carry important implications for consumer-goods companies and retailers doing business in today's challenging South African market.

Concern and caution

Most South Africans are making cautious financial decisions. Slightly more than half of survey respondents said they are finding it harder to make ends meet than they did a year ago, and 55 percent said they live paycheck to paycheck (Exhibit 1). More than 60 percent agreed that their precarious financial situation is causing them to delay purchases or cut back on spending.

This pervasive sense of financial instability in South Africa stands in stark contrast to the rising confidence of consumers in certain parts of the world. The majority of consumers surveyed in mainland China and North America, for instance, expressed no concern about job loss.

Even if their financial situation were to improve, South African consumers wouldn't necessarily loosen their purse strings. Survey respondents said that if their income were to rise by 10 percent, they'd spend only about 22 cents of every additional rand; the rest would go into savings and toward paying off debt. Among consumers who said they'd spend a portion of their extra income, most-60 percent-would buy everyday necessities. More than 40 percent said they'd allocate some of the money to clothing and home goods.

Four traits

The survey responses brought to light a set of behavioral shifts among South African consumers. These shifts, to some extent, are also evident in other parts of the world, especially in emerging markets. Collectively, they underscore the challenges and opportunities that consumer-focused companies will face in the near term. Companies doing business in South Africa would do well to keep in mind the following four traits of today's South African consumers.

1. They proactively search for savings.

Consumers are reducing their spending in a variety of ways. Seventy-five percent of South Africans agreed that they're "increasingly looking for ways to save money." More than half said they are tightening their belts by comparing prices, seeking out sales and promotions, delaying purchases, and shopping at several stores to find better deals. In addition, they're changing their eating habits-in particular, eating at home instead of dining out and cooking from scratch more often.

Would you like to learn more about our Consumer Packaged Goods Practice?

2. They are brand loyal-but only if the price is right.

Three out of every four South African survey respondents said they've modified their buying behavior when it comes to their favorite brands. Many haven't abandoned their preferred brands but are shopping around to find retailers that sell these brands at lower prices. Some are also purchasing in smaller quantities, waiting until the brands are on sale, or buying only with discount coupons (Exhibit 2).

3. Once they trade down, they might not go back.

In the survey, 21 percent of South African consumers, compared with only 12 percent of consumers globally, reported trading down-that is, buying cheaper brands or private-label products instead of their preferred brands. Among consumers who traded down, 36 percent opted for private-label products. The most vulnerable categories (those with the highest trade-down rates) were pasta, bottled water, and household-cleaning supplies, perhaps indicating that some branded products in these categories may not have differentiated themselves enough and thus don't stand out in the minds of South African consumers (Exhibit 3).

Many consumers who traded down didn't regret it; they were satisfied with the less-expensive options. Indeed, 57 percent of those who traded down said they intend to stick with the less-expensive option and not return to the brand they bought previously. That said, 43 percent of down-traders in South Africa (compared with 31 percent of down-traders worldwide) expressed a desire to go back to the more-expensive brand they used in the past. This suggests that the value brands and private-label products available in the South African market have room to improve with regard to quality. It is perhaps also a testament to the powerful allure of aspirational brands for South African consumers.

A small fraction of South Africans bucked the trade-down trend: 5 percent decided to upgrade their purchases in certain categories-in particular, alcoholic beverages and cosmetics. This indicates that higher-end brands in these categories can thrive even in a depressed economy, so long as they can persuade consumers that they are worth the price premium.

4. They shop across channels and find value at discounters.

Another important change in spending habits has to do with where people shop. South Africans claimed to have shifted a considerable fraction of their spending toward modern retailers and away from the small independent retailers collectively known as the fragmented trade or informal trade. Indeed, South Africa's modern retail trade continues to grow at the expense of the fragmented trade, as big-name retailers expand into more local markets and as more consumers demand the breadth of products and low prices that large modern retailers provide. In particular, consumers' search for value has driven a channel shift to discounters and hypermarkets, where consumers expect to find lower-priced offerings (Exhibit 4).

Implications for consumer companies

In light of these consumer behaviors, what actions should consumer-goods companies and retailers take in South Africa? How can they best position themselves for future success? In our view, they would do well to consider the following imperatives. Some of these are applicable to companies operating both in South Africa and elsewhere in the world; others are specific to the South African market.

At every price point, get credit for value

With many consumers seeking savings opportunities, companies must give consumers solid reasons to choose their product or store over alternatives. Our research shows that the perception of value for money is by far the biggest factor influencing South African consumers when they consider a brand or a retail store, make a purchase decision, and decide to become loyal to a brand or store. Our research also shows that value perception is informed by more than just low prices. Getting credit for value requires companies to pull several levers-for example, consistent value communication across all consumer touchpoints, price investments in the items that consumers are most likely to shop around for, and targeted promotions.

Products don't necessarily have to be in the lowest price tier, but any price premium needs to be explicitly linked to well-defined benefits. That means emphasizing not just the emotional attributes of a product but its functional benefits as well-reminding and reassuring shoppers about the particular features that make the product worth its price. Consider the success of salon-quality hair-care brands: consumers feel they're getting good value for money, even though the salon-quality brand might be twice as expensive as their old shampoo brand.

Invest in advanced revenue-growth-management (RGM) capabilities

Through investments in robust RGM solutions and analytical talent, leading companies arrive at data-driven answers to critical questions such as these: What role does each brand and each pack size play in the assortment? How, if at all, does that role differ by channel and by geographic region? Which promotions are most effective, and why? Based on such insights, companies devise granular strategies for their brands, portfolio, pricing, and promotions and tailor these strategies to each channel, customer segment, and geographic region.

Using advanced RGM analytics, a South African consumer-goods manufacturer discovered the pivotal role that smaller pack sizes play in owning the opening price points. In addition, RGM analytics enabled the company to boost the effectiveness of its promotions-it not only doubled the return on its promotional investments but also improved consumers' perception of the affordability of its products.

Be thoughtful about channel strategy, especially with regard to the informal trade

Saving, scrimping, and...splurging? New insights into consumer behavior

As large modern retailers expand across South Africa, they put more pressure on CPG manufacturers to increase promotional spending and trade discounts, eroding manufacturers' profits. Ironically, many manufacturers themselves are contributing to the channel shift from informal to formal retail by paying insufficient attention to the informal trade. For instance, manufacturers often provide informal retailers with an inferior offering when it comes to product, promotions, and in-store investment. By contrast, CPG companies that serve the informal trade in a distinctive but cost-efficient way-providing customized pack sizes, regular consumer promotions, and an appropriate level of in-store investment-are rewarded with higher sales and margins. For CPG companies that don't have the scale to serve the informal trade directly, effective third-party-distributor management can allow them to reap the benefits of a direct-sales system without incurring the full costs of serving many small outlets themselves.

Be crystal clear about who your target consumer is, and define a truly differentiating value proposition

Instead of trying to appeal to the generic "consumer," the most sophisticated companies gain a thorough understanding of the various consumer segments and microsegments, as well as the factors that drive buying behavior in each: What attributes does each microsegment value the most in a specific category? What will consumers in these microsegments pay for, and what don't they care about? Delving into these questions requires gathering data from multiple sources-including transactions, consumer research, and social media-and harnessing the power of advanced analytics.

Retailers, for their part, must give consumers compelling reasons to shop their stores. Winning retailers don't try to differentiate themselves in every possible dimension, but rather in only one or two. Apparel retailer H&M, for example, built its reputation on its ability to offer fast fashion at highly attractive prices. Although other retailers have since entered the fast-fashion fray, H&M's stores globally and in South Africa still attract long shopper queues.

Bifurcate your portfolio; avoid getting stuck in the middle

As South African consumers trade down and selectively trade up, companies whose portfolios consist primarily of midtier products might have little to offer. Such companies could consider developing a low-priced offering aimed at down-traders and mass consumers; companies that play in categories with high trade-up rates might also consider developing a premium offering. In these product-development efforts, a design-to-value approach and skillful management of portfolio complexity will be essential to achieving profitable growth.

Companies can learn from the experience of a beverage manufacturer that captured growth in China by establishing a "price ladder" to encourage trading up within its brands. The company launched a series of progressively more-expensive offerings, from value to core to premium and finally to superpremium. It also consistently raised the price ceiling through innovation-for instance, introducing an "artisanal" beverage that came in a sleek container with a distinct shape, color, and design. That product sold at five times the retail price of the brand's core offering. The result of this clear pricing hierarchy: double-digit increases in net revenue and significant market-share growth.

CPG companies and retailers in South Africa will most likely continue to face low levels of consumer spending and an increasingly competitive landscape for at least the next several months. To win in this environment, companies must relentlessly sharpen their focus on delivering exactly what the customer wants at the lowest possible cost, even as they seek to build strong brands and position themselves for future growth.

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Over the past decade, more than three and a half million South Africans have been lifted out of extreme poverty. As of 2015, the country's consuming class grew to encompass about nine million households, accounting for $191 billion in private consumption.

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Do consumers experience buyers remorse in your country?

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Do consumers experience buyers remorse in your country?

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Yes, buyers remorse is a feeling which is quite common in South Africa

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What else should we know about your country's buying behavior? 

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What else should we know about your country's buying behavior? 

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They have very different buying practices due to inflation.