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Consumer aspirations
driving force in retail
The concept of gic Marketing, Professor John Simpson are eight aspirations his research has
agrees. Professor Simpson was invited revealed among consumers. These aspi-
‘aspirations’ is not easily by the South African Council of Shopping rations are: stability, belonging, freedom,
Centres (SACSC) to share his research comfort, respect, experiences, health and
defined as each person and expertise at a networking breakfast giving back. “Consumers aim to improve
which took place at the Balalaika Hotel in their circumstances, they aspire to it. This
has their own definition Sandton on May 2, 2017-an event spon- is the reason why a particular consumer
sored by Primedia Unlimited Malls. will be targeted by a marketer. Our re-
and understanding of search into consumer aspirations is done
John Simpson has been responsible for in a variety of ways. We have done a very
the term. heading ground-breaking research proj- strong quantitative study and incorporat-
ects on South African consumer trends. ed that study with in-house focal groups
However, general consensus points Under his directorship, the Institute and interviews which gives us a greater
towards improving one’s current state of has developed into one of the country’s understanding on who the consumer is
living and improving the way one lives his foremost marketing research think- and what they aspire to,” he said.
or her life as the general definition. tanks. John teaches in the University of
Cape Town’s Commerce Faculty, where he Professor Simpson added that it is
With the rapidly emerging black headed the University’s School of Man- important for retailers to take consumer
middle-class, consumer aspirations agement Studies for a number of years. aspirations into consideration when
have become a huge driving force in the developing marketing campaigns. “Con-
retail industry. Director and co-founder According to Professor Simpson there sumer aspirations in South Africa is very
of the UCT Unilever Institute of Strate- important because it allows you to target
your brand to a particular customer giving
Lewis final results him the opportunity to buy an item which
March 2017 he or she feels better for as a result. You
would market a product which tells him
Revenue for the year lowered to R5.6 Company prospects or her that they actually will be better off
billion (R5.8 billion) while operating Trading conditions are not expected as a result of buying a particular item. In
profit before investment income to improve in the short term and in one way or another, whether it is in terms
decreased to R564.8 million (R815.0 this environment of muted consumer of his personal circumstances, whether
million). Net profit attributable to spending, management will remain in terms of the society where they are a
ordinary shareholders tumbled focused on tight expense control, member or whether it has something to
to R358.0 million (R961.5 million). improving collections productivity, do with his family-these are the things
Furthermore, headline earnings per driving sales growth and sourcing he aspires to improve upon,” Professor
share dipped to 400.1 cents per share innovative merchandise ranges which Simpson said.
(621.37 cents per share). appeal to its target market.
He also added that South African
Dividend The group’s solid balance sheet retailers need to make their stores more
Notice is hereby given that a final gross supported by its strong cash position attractive to the consumer with aspira-
cash dividend of 100 cents per share and current low levels of gearing at 2.9% tions. “There are two main things that
in respect of the year ended 31 March (compared to 25.5% a year ago) provide a retailers can do to appeal to this market.
2017 has been declared payable to good platform for the group’s medium-to One would be to make their stores more
holders of ordinary shares. longer-term growth strategies. appealing in such a way that a consumer
feels recognised as to who they are. The
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