Festive News

//Festive News

Festive News

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Tis’ the season to be jolly…. Or is it?

This retail landscape update, posted on Fastmoving by Eben Esterhuizen from OnShelf Pharma, provides a clear picture of consumer spending patterns expected for this festive season:

“Despite the moderate outlook, the silly season does see an upswing in consumer spending as society wants to participate in the season to ride the reindeer of positivity and hope”.

What it says to us at In Touch Media, is ’tis the time to advertise…out of home!

Consumers face increased affordability pressure and this is expected to continue and perhaps even worsen if the county remains risky ground for foreign investment. Although the income servicing debt has improved over the years, it still remains high.

The full retail landscape has growing diversity of local start-up brands and international powerhouses entering the market. Shoppers have options and overwhelming choice. They are responding by being more careful with purchases and therefore making considered choices.

Grocery retailers experience the most immediate impact, and competition to differentiate their appeal to shoppers, is so quick it sometimes seems experimental.

The general retail index shrunk 27% since its April 2015 high, however, 2 retailers are swimming strong against the current. Clicks and Dis-Chem have both achieved double-digit stock gains. This is due to consumer trends and store expansion. Trend analysis shows that higher income households are pursuing consumption trends such as healthy eating, banting, pop-up shops, homegrown, sustainably sourced…
These movements see loyalty, new entrants, and growth. During 2016 retailers increased their product offering and expanded into new segments while pushing price competitiveness. Vulnerable income households struggle to make ends meet and price strongly influences their decision on where to shop.

A silly season won’t pass by without Christmas advertising and somewhat of a buying frenzy… People will choose to spend on essentials like housing, electricity, education, health, and groceries, then reduce debt and lastly spend on leisure items. Retailers have also curtailed money invested in advertising during the Christmas season as the buying power of engaged shoppers willing and able to spend has shrunk.

In exploring how shoppers are engaging with online platforms verses brick and mortar, The Deloite SA holiday shopping trends report found that “In 2015, over 80% of South African respondents intended to purchase from brick-and-mortar stores.” Online sales are on a steady growth trajectory but remains a small value contributor to retail sales. Part of the favoured shopping experience is to tangibly engage with the product when purchasing. This view is more relevant to the type of product being shopped for. Shoppers are also doing fewer trips to retail outlets but spending more. This behaviour is in line with using resources more effectively to extract the best possible value.

Here are the top 3 things we can expect to see this silly season:

  1. Shoppers will continue to draw back on gifting and utilise more effective ways of purchasing, like saving a trip to the mall by ordering online or making fewer shopping trips and spending more. Online sales are forecasted to grow by 15,5% this quarter, as noted in a report by Kantar.
  2. Retailers will advertise affordable value like Makro’s inflation buster promotion on gifting this Christmas. Surprisingly Makro is the only retailer from the top 5 brick and motar outlets to post a digital Christmas advert, indicating that the rest might be relying on traditional print advertising closer to Christmas to get a more impulsive buying frenzy. The challenge with a buying frenzy is that it is highly supported by price.
  3. People are spending less and less each year on leisure items, like holidays and cars. This budget is being redirected to maintaining the current essential household demands, lifestyle events, and experiences and lowering debt. On the lifestyle trend, we see a growing desire for health, beauty and fitness/wellness.

Despite the moderate outlook, the silly season does see an upswing in consumer spending as society wants to participate in the season to ride the reindeer of positivity and hope.

Measurable = Accountable Advertising

As a specialist Out of Home advertising agency our clients are finding the ROAD measurement metrics of great value to determine their ROI. The measurement has enabled us to provide a yardstick to justify the inclusion of Out of Home within the media mix. ROAD allows us to provide empirically based strategies that demonstrate the efficiencies and incremental reach and frequency that roadside formats provide within an Out of Home campaign.

Out of Home used to be an afterthought within media plans in large media strategies. This has largely been due to the lack of Outdoor advertising measurement, however with the launch of the OMC’s ROAD Survey in South Africa, Outdoor Advertising can now be accounted for in the same way as TV, Radio, print and other traditional media, and demonstrate its value within the media mix. Further to this, it has been shown from around the world that once comprehensive measurement is provided the importance of the medium is validated, and the size of the industry grows.

We are hopeful that the Outdoor media owners that are not yet participating in the OMC’s Road Survey will see the value that the measurement provides for their business, and that of their clients, so that the universe of panels within the system is more demonstrative of the total market. The more representative the measurement is of the industry the better we will be able to provide solid strategies and plans that showcase the effectiveness and cost efficiencies of this exciting medium.

We were, as the agency to implement the latest Reboost campaign on the N1 Ben Schoeman Highway, able to establish to our client the major impact that their billboard was creating by attracting over 5 million impacts, with a unique audience of 455 634 and average frequency of 12 per month. Previously, key media metrics like this were not available.

A sneak(er) preview by Footgear

Footgear, a privately owned company, opened in March 2001 in a 50m2 shop in Access Park, Kenilworth, Cape Town. From these humble beginnings, the business has grown steadily over the last few years. Today the first store has grown to 1150 sqm. Footgear currently has 53 stores (within Cape Town, Gauteng, North West, Mpumalanga, Limpopo & Eastern Cape) and continues to grow at a rapid rate!

Their current promotional campaign, Sneaker Magic, has just hit the streets of South Africa. Herewith a sneak(er) preview of the campaign, flighted around Killarney Mall by In Touch Media.

Follow them on Twitter @FootgearZA

New on the street!

Piatto has launched their festive season campaign in Gauteng. Promising “a taste of the good life” their message is uplifting and enticing! The promotion, which is concentrated around their seven restaurants in key locations, appropriately states, “End the year on a good note, start the next on a better one”.

Follow them on Twitter @PiattoRest

By | 2018-03-10T15:11:31+00:00 December 6th, 2017|Newsletters|0 Comments

About the Author:

Margie Carr
Margie Carr has been involved in various aspects of the Out Of Home world in South Africa since 1995, and established In Touch Outdoor in 2002, growing the company to an accredited specialist media agency in 2015 along with her dedicated team. She is passionate about Outdoor Advertising. Margie spends her time strategising for clients, growing her marketing skills, writing articles and painting whenever she gets the time.

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