- South African consumers prioritise quality, creating opportunities for premiumisation strategies during Black Friday celebrations
- Nearly half of consumers link value for money to high-quality offerings, emphasizing the importance of premium promotions
Johannesburg, 21 November 2024 – While retail remains the centrepiece of Black Friday, new data from CGA by NIQ On Premise User Survey (OPUS) of the South African market reveals the growing role of pubs, bars, and restaurants in meeting the needs of celebratory consumers. Nearly a third (31%) of South Africa’s On-Premise users visited a venue to celebrate a holiday within the last three months – a trend that highlights the potential for strong Black Friday turnout.
In light of this, CGA by NIQ’s Client Solutions Manager for EMEA Abhi Sehgal comments, “Black Friday offers a unique chance for venues to capitalise on South African consumers’ celebratory spending mindset. With smart pricing and promotional strategies, businesses can attract guests ready to celebrate the approaching Festive Season and drive both immediate sales and repeat visits.”
Promotions to navigate price sensitivities
With South Africa’s high inflation rates affecting consumer behaviour, well-timed and strategic promotions can make a significant impact. More than three-quarters (77%) of On-Premise users report moderate or severe cost-of-living pressures, making price a key factor in their choices.
Key findings include:
- Pricing Importance: Price is one of the top two factors influencing drink choices in every major On Premise channel.
- Demand for Deals: Almost half (44%) of consumers say they will actively seek out promotions, such as Happy Hour discounts, if prices increase further.
- By aligning promotions with consumer preferences, venues can offset cost concerns while ensuring guests feel they are receiving value for money.
Celebratory occasions: A family affair
An additional key insight is that Black Friday and other celebratory occasions are particularly family-focused with nearly half of consumers go out with family members, including children (48%), or with their partners (47%). For many, family is a top lifestyle priority, with more than half of respondents identifying it as central to their decision-making. These insights emphasise the importance of creating family-friendly environments and group-centric experiences.
The quality-value equation
Promotions that focus solely on affordability risk missing the mark with South African consumers, who prioritise quality over low prices. Quality is a key consideration for South African consumers when it comes to value for money, with nearly half (48%) defining it as receiving a good-quality product and 42% associating it with a product being worth its cost.
This preference for quality creates significant opportunities for premium offerings, as 71% of respondents say they prefer high-quality drinks, far outpacing the 29% who favour cheaper options. Moreover, two-thirds of consumers (65%) are willing to pay more for better-quality drinks in pubs, with the percentage rising to 68% in informal taverns and shebeens, underscoring the potential for premiumisation strategies in these settings.
These trends suggest that Black Friday promotions should balance affordability with premium offerings, encouraging trial and trade-ups without sacrificing perceived value. Seghal explains, “Big public occasions like Black Friday should be seen as a launchpad for engaging consumers and driving incremental sales. Promotions that emphasise both quality and value are key to unlocking spending potential – not just on Black Friday but throughout the holiday season.”