| Make foodmate.com your Homepage | Wap | Archiver
Advanced Top
Search Promotion
Search Promotion
Post New Products
Post New Products
Business Center
Business Center
 
Current Position:Home » News » Marketing & Retail » Food Marketing » Topic

What do South African consumers want?

Zoom in font  Zoom out font Published: 2015-10-09  Views: 2
Core Tip: A few weeks ago FreshPlaza published an article on how the good South African citrus export season was affecting supply of high quality oranges for the domestic market.
A few weeks ago FreshPlaza published an article on how the good South African citrus export season was affecting supply of high quality oranges for the domestic market.

While this is a genuine concern for the top-end retailers who are trying to build the citrus category, we asked what do the majority of South Africans want when buying citrus?

Most of the citrus sold in South Africa is bagged, ranging from 5-10kg in weight, with the 6kg bag being the most popular. Most consumers demand size and taste when buying citrus, with the appearance of the fruit not having to be class 1. They are understanding more that the rind does not determine the taste.

Hannes De Waal, Managing Director at Sundays River Citrus Company, the biggest citrus packer in South Africa, will ship 9m, 15kg cartons this year and 1-1.5m cartons will go to the South African market most of it in bagged format.

He explains that South Africa is a very interesting market and while the retailer has a valid point, the top-end consumer plays a very small part in the domestic demand.

"The look of the citrus is not the South African consumer's first concern, but if it tastes bad you will certainly hear about it. In Europe the perception is that the best fruit is exported, and indeed the European and North American and even the new Chinese consumer are used to a great looking orange and it is required. In South Africa they are used to taste and a certain level of sugars, around 10-12 brix. The sweeter and fresher the better!"

De Waal said that the change in strategy of some retailers to go for higher external specs is interesting, "If you look at the most successful retail chain concept just now in South Africa, Freshmark with Shoprite/Checkers, Massmart and Wholesalers, they predominantly buy the bag loads, they want size and they want taste, they are definitely not after export class fruit. Woolworths is one retailer who has been trying to serve the more 'discerning' customer who buys maybe a punnet or a few loose oranges. They are targeting a specific niche."

SRCC supply the hinterland local markets in Kwazulu Natal, Gauteng and the central areas and find that in those markets the demand for small packs is still very limited so it is not something they are trying to get into. One and two kg polybags are probably 1% of sales in that area.

Pick and Pay are also trying to get into the market for export quality Class 1 fruit, according to De Waal, at the beginning of the year they had only limited concept stores doing this. Mass consumption is really for the 6kg bags, "I cannot think of any people who would not buy citrus just because it is not Class I, there is a new type of consumer emerging who would want to buy a better looking fruit for bit more money but if you look at the demand it's not really in our geographical area. Although overall domestic demand is on the rise with 6-7% increase this year."

The African market is becoming more and more important for South African citrus, and if stores such as Shoprite expand into African countries there will be a lot of potential, but De Waal explains that it is not an easy market, "You have a lot of wild citrus growing in certain African countries and Egypt is pushing down from the north and South African pushing up from the south, but at the same time as the retail develops we expect that the African market will develop, but I do not think it will be a particularly discerning mass market very soon either."

There are quite a number of wealthy South Africans and more and more people are becoming wealthier but there is still a large proportion (10m) in the country who are not well off, especially in rural areas, these are the people who want the 6kg bags and it is a huge market, but building on price is not really possible.

Oranges are frequently used in promotions to get customers into the store especially in the peak of the season, some even giving a bag away free if the consumer buys another type of fruit.

South Africans have not been brought up with similar retail concepts and having very good looking fruit on the shelf 12 months a year, as is the case in Europe and North America. Imported fruit does not sell well if highly priced. De Waal does not see the majority of consumers changing significantly in the next decade.

The domestic prices are not comparable with the export prices, the citrus industry is very dependent on the huge export market, but developments in South African and the Africa market are very positive and welcome according to De Waal.
 
 
[ News search ]  [ ]  [ Notify friends ]  [ Print ]  [ Close ]

 
 
0 in all [view all]  Related Comments

 
Hot Graphics
Hot News
Hot Topics
 
 
Powered by Global FoodMate
Message Center(0)