A Glimpse

- South Africa
 About South Africa
 Located at the southern tip of the continent of
Africa

 Modern human beings have inhabited

Southern Africa for more than 100,000 years

 It is known for its diversity in cultures,

languages, and religious beliefs
 Society
 South Africa is majorly a middle income society

 No single culture is dominant in SA due to its ethnic

diversity

 SA is diverse, with the largest Caucasian, Indian, and

racially mixed communities

 They have 11 official languages

 Population: 48.9-million

 Languages: Afrikaans, English, Ndebele, Pedi, Sotho, Swazi, Tsonga, Tswana, Venda,
Xhosa, Zulu

 Religion: Christian, indigenous beliefs, Muslim, Hindu

 Currency: Rand

 Life Expectancy: 53

 GDP per Capita: U.S. $10,000

 Literacy Percent: 86
Sport
 Cricket
 Soccer
 Surfing
 Rugby

 Food
 braai or barbecue is widely popular, especially with whites
 Vegetarianism is becoming widely accepted.
 Indian food like curry is also popular, especially in Durban
with its large Indian population
 TV and Films
 Television, which for political reasons was not
introduced in South Africa until 1976, is also popular.
 Traditionally, U.S. programmes have dominated TV
schedules. Programmes like The Bold and the Beautiful
have been popular with South Africans
 Film Tsotsi, which won the Academy Award for Foreign
Language Film at the 78th Academy Awards in 2006 as
well as U-Carmen e-Khayelitsha, which won the Golden
Bear at the 2005 Berlin International Film Festival.
 Etiquette & Customs in South Africa

Meeting Etiquette
. There are several greeting styles in South Africa depending upon the ethnic heritage of
the person you are meeting.

. Some women do not shake hands and merely nod their head, so it is best to wait for a
woman to extend her hand.

. Greetings are leisurely and include time for social discussion and exchanging pleasantries.
Gift Giving Etiquette
. In general, South Africans give gifts for birthdays and Christmas.
. Two birthdays - 21 and 40 - are often celebrated with a large party in which a lavish gift is
given. It is common for several friends to contribute to this gift to help defray the cost.
. If you are invited to a South African's home, bring flowers, good quality chocolates, or a
bottle of good South African wine to the hostess.
. Wrapping a gift nicely shows extra effort.
.
 Dining Etiquette
. If you are invited to a South African's house:
arrive on time if invited to dinner.

. In Johannesburg, casual is dressier than in other

parts of the country. Do not wear jeans or shorts
unless you have spoken to the hosts.

. Offer to help the hostess with the preparation or

clearing up after a meal is served.
Business Meeting Etiquette
. Appointments are necessary and should be made as far in advance as
possible.

. It is often difficult to schedule meetings from mid December to mid

January or the two weeks surrounding Easter, as these are prime
vacation times.

. Personal relationships are important. The initial meeting is often used

to establish a personal rapport and to determine if you are trustworthy.

. After a meeting, send a letter summarizing what was decided and the
next steps.
 Household Expenditure in South
Africa by Main Expenditure Group
Household Expenditure in South
Africa by Population Group
 Economy
Industry:

 World's largest producer and exporter of gold & platinum and

the 5th largest producer of diamonds in the world

 Country produces 70% of the world platinum and also has 60%
of the global coal reserves

 Country's diverse manufacturing industry is a world leader in

several specialized sectors, which includes railway rolling stock,
synthetic fuels, and mining equipment and machinery.
IMPORTS

countries
EXPORTS
 Consumer Market – Dual Split

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SHOPPING DESTINATIONS
FOOD BUYING PATTERNS
 Conti…
 A major phenomenon in evolution of the distribution sector
in South Africa has been the emergence of supermarkets or
hypermarkets, which sell large quantities of almost all
consumer goods on a self-serve basis.

 The hypermarkets, located in suburban shopping centres,

have disrupted the traditional distribution chain by
purchasing directly from manufacturers and bypassing the
wholesaler, with low margins achieving high turnover,
thereby placing price pressure on all competing outlets.
 South African Consumers
South African consumers are generally very brand conscious. The middle
class, particularly, has quite good consumption levels, including the new
black middle class. These consumers are looking for sophisticated goods
and tend to reduce the amount they spend on vital commodities or
housing.

The after-sales service is extremely important in South Africa, especially

in terms of providing technical and spare part services.

The South African consumer is a well-informed consumer. Moreover, the

dynamism in country’s economy has resulted into an increase in
purchasing power and an expansion of the black middle class having
higher disposable income levels.
 Top Brands
 Coca-Cola
 SAB
 Nike
 Vodacom
 KFC
 Pick ‘n Pay
 Eskom
 Nokia
 MTN
 Toyota
 BMW
Top winners in each category- 2009
 Sports clothing
 Nike
 General clothing category
 Levi's
 Sunglasses
 Rayban
 Police
 Dolce and Gabbana
 Watch
 Michel Herbelin
 -contd
 Retail banks
 Standard Bank
 Small Air carrier
 British Airways
 Digital network
 Facebook
 MXit
 My Space
B2C
B2C Metropolitan Consumer
South African Population by Race
and Province
 Cultural Idiosyncrasies
 The legacy of Apartheid segregation: Many cultural
differences correspond closely to the racial groups
defined by Apartheid (Blacks, Whites, Coloureds, Asians)

 Blacks speak English or Afrikaans in addition to their

native tongue, which may be one of nine Bantu
languages with official status since 1994

 Most are Christian, with strong membership of the

Anglican and Roman Catholic churches
 Conti…
 There is a vibrant indigenous culture, with local popular music
forms, such as Kwaito, locally mixed house while black South African
musicians such as Ladysmith Black Mambazo, Mahotella Queens,
Miriam Makeba, and Hugh Masekela are well known internationally.

 Across the different groups, marriage customs and taboos differ, but
most traditional cultures are based on beliefs in a masculine deity,
ancestral spirits and supernatural forces

 Polygamy is permitted and a lobolo (dowry) is usually paid. Cattle

play an important part in many cultures, as symbols of wealth and
as sacrificial animals
 Conti…
 The Xhosa also have a strong presence; they are known as
the red people because of the red-dyed clothing worn by
most adults

 The mixed-race Coloureds are, culturally speaking, much

closer to whites, especially Afrikaans speakers, whose
language and religious beliefs they share, than they are to
black South Africans

 Asians, (predominantly Indian origin) preserve their own

cultural heritage, languages and religious beliefs
 Conti…
 Steak or boerewors sausage, over boiled veggies and chips
are the norm in food

 Vegetarians will not have a good culinary time. African

dishes are not commonly served in restaurants, although
you can get a cheap rice and stew belly-filler from street
stalls in most towns.

 Beer and brandy are the popular swills, and South Africa's
excellent wines are becoming more and more popular.
 Country Of Origin
 For many products, the “Made in” label matters a great deal to
consumers in South Africa

 South African consumers prefer imported products

 The critical factor appears to be the place of manufacture rather than

the location of the company’s headquarters ucts over domestic
products

 COO effects depend on the product category

 COO effects are not stable; perceptions change over time

 Conti…
 Japanese goods are rated favourably by South African
consumers

 Canadian goods, although often thought comparable

to American goods on performance characteristics, are
considered technologically imitative

 Chinese products are considered to be spurious in

nature
 Conti…
 Korean consumer electronic and automobile brands have not yet
translated into a strong positive country of origin effect in SA

 Australian wines are appreciated because they produce heavier

wines

 Indian pharmaceutical products are considered inferior in nature

 USA products are considered to be of high quality and

consumers are willing to pay higher prices
COO IN PURCHASE
 Strategies to cope with SA consumers
 Product Policy: Select a brand name that disguises the
country-of-origin or even invokes a favorable COO

 Pricing: Low or high price according to consumer

perception

 Distribution: Companies could influence consumer

attitudes by using highly respected distribution channels

 Communication in local languages

 Ethnocentrism
The term ethnocentrism was coined by William G.
Sumner, upon observing the tendency for people to
differentiate between the in-group and others. He
described it as often leading to pride, vanity, boasts
of one own group's superiority, and contempt of
outsiders
Sanford (1950) defined ethnocentrism as a tendency
in the individual to be “ethnically centered” and to be
rigid in his or her acceptanceof the culturally “alike”
and in his or her rejection to the culturally “unlike.”
 Contd…
Ethnocentric consumers will search for some kind of
compromise and try to reduce the gap hetween superior
foreign hrands and inferior domestic hrands. In doing so, the
authors helieve that they are more likely to upgrade domestic
hrands than to downgrade foreign ones.

First, stating a negative nonconforming attitude toward foreign

hrands would explicitly contradict the in-group norm that
foreign is hetter. This would result in substantial personal and
social costs and is thus an unlikely response.
 Ethnocentrism
 CETSCALE — a unique scale to measure consumer
ethnocentrism,LOW ratings for SA
 The belief that purchasing foreign products hurts the
local economy by causing loss of jobs, and that it is
morally wrong and unpatriotic

 South African consumers are found to be low

ethnocentric consumers, who consider that foreign
products should be evaluated on their own merit,
sans any jingoism
 COMPARISON WITH INDIA
The Indians are generally perceived as clamouring for foreign brands (Varma,
1998). Batra et al,’s (2000) paper contains an account of literature that
gives possible reasons for the average Indian’s fondness for foreign goods.
These reasons include search for status symbols in the hierarchy-conscious
Indian society, inferiority complex vis-à-vis the (erstwhile) foreign rulers,
increased contact with the West, rising incomes, changing expectations,
and cultural receptiveness to symbolism of brands.
But, there exists a different strain of thought too.
La Barre (1994) quoting the results of the Bozell-Gallup
worldwide quality poll says: ‘India is an import receptive
country but it has a healthy self image.’
Thank You !!!
Submitted by:

Saby
Tara
Satarupa
Sushant
Sumit