Retail News South Africa

NAB reveals some unexpected spending patterns

Although Sandton has the highest percentage of top income households in South Africa (50% earn R20 000 plus per month), it does not mean its residents are the biggest spenders when it comes to lifestyle related purchases and activities.

This is according to the Newspaper Advertising Bureau's (NAB's) ROOTS 2004 research survey, which is being used by marketers nationwide to pinpoint their most lucrative target markets.

About 56% of Sandtonians regularly surf the net, but are beaten to the post by Pretoria's Centurion residents at 59%. Eight percent of Sandtonians have recently purchased a new vehicle but Tzaneen residents dominate this market with 11%. Whilst 10% of Sandton dwellers have invested in a second property, Pretoria East tops them with 16%. When it comes to buying rather expensive jewellery, Rustenberg matches Sandton, both showing 19%.

Contrary to popular belief, Rosebank/Killarney residents eat out far more than Sandton residents (81% vs 75%). Sandtonians often exercise at a local gym, but Fourways comes out tops of the fitness scales with 34%, followed closely by Rosebank/Killarney, Bedfordview, Midrand and Durban North residents. When it comes to buying specialised cosmetics, only 16% of Sandtonians said 'yes' compared to the 30% of people from Tzaneen and 26% from Springs and Ermelo.

"The survey proves that higher levels of income are not the only indicators for spending patterns and participation in more expensive activities," comments Debbie McIntyre, Group Marketing Director for NAB and Caxton/CTP Publishers and Printers.

The Newspaper Advertising Bureau (NAB) is a division of Caxton CTP Publishers and Printers. NAB's ROOTS 2004 research survey was based on a sample of 18 000 Purchasing Decision Makers (PDMs) interviewed in 58 urban areas nationally.

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