Research: How Do Township Entrepreneurs View Local Brands?
Let’s talk about township entrepreneurs loving local.
One of the many beautiful things I’m reminded of often about South African entrepreneurs is just how diverse the community is. The closer you look, the more pockets of subcultures are found - each with its own set of idiosyncrasies.
What is even more fascinating is how entrepreneurs then move between subcultures, slotting in and out of new groups, but always leaving behind traces from others. A medley of distinct identities within a larger collective.
Take one of the most important communities in South Africa, township entrepreneurs.
The surface-level similarities between different townships across the country are pretty obvious - mostly informal traders, low employment rates, socio-economic hardship, lack of access to resources and so on.
Yet at the same time, no township is the same.
You just have to spend a bit of time in a handful of them to notice differences (some vastly so!) in vernacular, values, references, habits, group dynamics, symbolism, and fashion sense - to name a few. All demand a unique approach to engaging with them when it comes to offering entrepreneur development support.
The point is, they are the same but different. Different but the same.
In visiting different township entrepreneur communities across the country, one thing we noticed that was very much shared between all the communities and was visibly increasing over time, was entrepreneurs' love for local people and local things.
It’s an area that we covered in-depth in our 4th edition Heavy Chef Entrepreneur Education Report: local is a source of inspiration for entrepreneurs.
Then earlier this week, the talented teams at Rogerwilco, MarketingMix and Survey54 released the 2022 South African Township Customer Experience (CX) Report which further cemented this fact.
Here are four key insights from this year’s Township CX report and another from our own that show how township consumers and entrepreneurs lean into local:
Insight 1: Overwhelmingly, township communities prefer to buy local - in particular, local fashion brands if they are available.
Insight 2: Local fashion brands are a source of inspiration and pride to township communities, with an increasing awareness of those brands.
Insight 3: There is a distinct appetite to convert their loyalty to local businesses into other rewards like discounts.
Insight 4: Local connections - family, friends and social networks - strongly influence buying decisions.
Insight 5: For township entrepreneurs, although they still rely heavily on themselves, the people closest to them are their strongest source of influence on them as entrepreneurs.
It’s local across the board. Township communities connect with local brands, businesses and people - not because of a sense of loyalty but because local is a point of connection, meaning and beauty that is deeper than we ever thought.
So, what actions can we take from the data?
For entrepreneurs, you are surrounded by powerful local stories (including your own) that are full of lessons in business and life. Why not pick and curate a few, and find creative ways to share them with other entrepreneurs inside and outside your community?
For educators, township entrepreneurs are looking for education models that fit into their lifestyle, not the other way around. Are there structured ways you can deliver local content while they are hustling to make a living?
For service providers, you have powerful platforms and large supply chains. How can you bring local micro-businesses into your world, shine a light on their stories and use them as conduits for your products or services in their communities?
This article was originally shared with our community as Louis Janse van Rensburg’s Friday Research Mailer. Subscribe now to get it in your inbox fresh!
