Page 9 - HGR March + April 2019

NEWSLINE 7
Brand trends for 2019: winning
consumer trust in a toxic climate
From data breaches
to fake news to state
capture to corporate
failures, issues of trust
and transparency ruled
the headlines in South
Africa and the rest of the
world throughout 2018.
As we move into 2019, the central
challenge brands will wrestle with is that especially Generations Y and Z, prefer
of embracing new roles and business
models that build trust with consumers
and drive mutual value for company and
consumer.
Here are some of the trends we expect
to shape the year based on insights from
our consumer research, including the GfK
Consumer Life 2018 study*:
1.Consumers are keeping the faith
2018 was a turbulent year on the
geopolitical front, from Donald Trump’s
divisive presidency in the US to populism
in Europe to the ongoing Brexit saga, to
the trade row between the US and China.
In South Africa, a heated debate about
land reform and revelations about the
depth of state capture during the Zuma
years have dominated the news.
Little wonder that the Oxford Word
of the Year 2018 is ‘toxic’ — we are
seeing low levels of global trust in the
institutions and organisations that
shape our everyday lives. Governments,
corporations, the media, social media
platform companies like Facebook, even
the essential nature of democracy and
capitalism are under scrutiny.
By Rachel Thompson, Insights Director at GfK South Africa
So, what we find quite interesting is
just how resilient consumers in South
Africa and the rest of the world are in the
face of economic and political uncertainty.
Our Consumer Life study finds that South
Africans are understandably concerned
about crime and lawlessness, recession
and unemployment. Yet 76% of our
respondents are confident about their
own economic future and 77% feel that
their children will have a better future.
People in the middle LSM bands (6 and 7)
are as confident as those in LSM 9 and 10.
2. Brand trust in a toxic world
Our surveys in developed markets like
the US and UK show that consumers,
to purchase goods and services from
trusted brands. They also expect brands
to step up to the plate when it comes to
social concerns and to do the right thing
when it comes to the causes and issues
they care about. In other words, the
crisis of trust in traditional institutions is into the social conscience of their
creating new opportunities for purpose-
driven brands.
The most successful brands of the
future in South Africa and the rest of
the world will be those that have a
perspective and purpose that looks
beyond quarterly and annual earnings—
they will be profitable because they do
the right things and create win-wins
with consumers and communities.
Among South African consumers, 46%
will select a brand if it supports a cause;
among Generation Z, this rises to 54%,
highlighting how this trend will only grow
in importance in the years to come.
The new brand mandate is to stand for
something and to bring about good for a
community beyond shareholders. Brands
that align themselves with a purpose
MARCH / APRIL 2019 | HOME GOODS RETAILER
can build enduring relationships with
consumers in a world where so many
products and services are so similar
and so commoditised. But they will find
themselves under fire if their positioning
is not authentic.
Simply paying lip service to the
notion of ‘social good’ through CSR
activities on Mandela Day or fulfilling
the requirements of the black economic
empowerment codes and charters is not
enough. The brand’s purpose and values
must be embedded in every aspect of its
operations—from the supply chain to
manufacturing to terms of employment
to consumer service.
In South Africa, many brands are
already filling gaps in government service
provision, such as the Outsurance traffic
wardens who served Johannesburg
for years. Expect more of this to come
down the line as brands try to tune
younger customers and to find ways to
differentiate themselves from the pack.
3. From owning to sharing
The sharing economy is a natural fit for
South Africa, where many people have
for years used stokvels as a vehicle
for saving and for mutual insurance.
We are seeing rapid adoption of the
sharing economy because it adds digital
convenience to behaviours we already
see among many people across the
county and because it appeals to their
sense of community.
Some 38% of South African
respondents have used a ride sharing
service such as Uber or Taxify and 13%
have used room sharing services such as
Airbnb. We expect to see adoption soar
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