2024 Township CX Report: Insights for brands navigating South Africa's township economy

Now in its fourth year, the report surveyed over 1,600 township residents across the country’s nine provinces, offering vital insights into consumer behaviour, brand perception, e-commerce trends, and the importance of trust in shaping brand relationships.

Mongezi Mtati, senior brand strategist at Rogerwilco, notes, “This year’s Township CX Report underscores that trust is the currency of the township economy. Brands that invest in genuine relationships, address real community challenges, and embrace the cultural significance of township life will stand out in this evolving market.”

The findings reveal that township consumers remain deeply connected to sources of trust and familiarity, with word of mouth and television tied as the most influential platforms for brand discovery, each cited by 28% of respondents. Social media follows closely at 27%, reflecting its growing significance as a trusted medium for engaging with township consumers. However, trust is fragile - 41% of respondents indicated that brand inactivity on social media undermines their confidence, emphasising the importance of consistent engagement in digital spaces.

Beyond trust in media, township consumers continue to demonstrate a strong affinity for local brands, driven by their ability to offer unique products and personalised experiences. Across all nine provinces, 19% of respondents cited price as a key factor in choosing township brands, while 18% highlighted the appeal of unique, locally made offerings. Township consumers tend to gravitate towards brands that resonate with their daily realities and cultural identity, underscoring the importance of authenticity and community relevance in capturing township loyalty.

The growing presence of counterfeit goods in township spaza shops has emerged as a pressing concern, impacting consumer trust and safety. While 19% of respondents believe spaza shop owners bear responsibility for product authenticity, an equal number feel this duty lies with manufacturers and brands, and 21% see it as the government’s role. To maintain trust and protect their customers, brands must establish strict quality control measures and collaborate with spaza shops to verify product authenticity.

Trust also extends beyond transactions. The report shows a growing demand for brands to actively contribute to community well-being. A notable 61% of respondents expressed scepticism about brands fulfilling their commitments to community development. Only 18% believe brands are delivering on their promises, with key areas for investment identified as healthcare services (28%) and infrastructure development (25%). Township residents are not just seeking products or services; they want partners who understand their realities and collaborate toward shared goals. “Engaging deeply with the community and demonstrating genuine commitment creates meaningful connections that resonate, driving long-term loyalty and trust,” says Mtati.

South African e-commerce sales jumped 29% in 2023 to R71bn, now accounting for 6% of the country’s R1.1tn retail market, according to market research firm World Wide Worx. Within the country’s townships, e-commerce adoption continues to grow steadily, with 40% of respondents shopping online in 2024, up from 30% in 2022. However, barriers persist - 45% of respondents cited unreliable internet service providers, and 43% pointed to the high cost of data as obstacles to broader adoption. Addressing these challenges presents an opportunity for brands to unlock the full potential of e-commerce in these underserved markets.

The report further highlights that “the township is everywhere,” a reflection of how township culture transcends geographic boundaries and influences consumer behaviour across South Africa. Authentic representation of this culture in brand messaging has proven to resonate deeply, building trust and fostering stronger connections with diverse demographics.

“Brands that genuinely grasp and embrace this dynamic will establish more profound connections with consumers across various demographics,” concludes Mtati. “But the real opportunity lies in going beyond surface-level engagement. Brands that actively build trust, authentically represent township culture, and commit to meaningful collaboration can position themselves as indispensable partners in South Africa’s dynamic township economy. The rewards will be lasting loyalty, deeper connections, and sustainable growth in a market brimming with potential.”

The full 2024 Township CX Report will be available for download on 20 November at: www.townshipcx.co.za.

The newly launched site will carry all reports from 2021, the Township Marketing Podcast (TMP) launching in 2025 and other insightful content and trends that influence the township economy.