SME retail trends

SME retail trends making waves

The South African consumer landscape has changed drastically in 2022, with shoppers looking for a seamless shopping experience, better value for money and more payment options than ever before. Staying in the know about the latest retail trends will keep SMEs one step ahead before the busier season approaches. Here are 4 SME retail trends making waves this festive season:

Social media commerce

As digital literacy increases, so does the need for a more convenient and speedy shopping experience. “South African consumers want to purchase products where and when they want to, especially on the platforms and apps they are already using.” Says Ashleigh Butterworth, Content Marketing Specialist at Finch Technologies. China has already seen great success with WeChat’s SuperApp functionality, where you can use the platform for both messaging and purchasing. Instagram, TikTok and Snapchat are the biggest players for Gen-Z with them spending 2x as much shopping on social channels than an average consumer. In contrast, Gen X are more inclined to make purchases on Facebook. Increasingly more businesses are turning their social media channels into shoppable ones, with Instagram making it a quick switch to a shoppable Instagram feed.  Hand in hand with social media commerce, comes the rise of influencer marketers, with 61% of shoppers trusting influencer recommendations.

Hybrid commerce channels

Click & collect continues to grow in popularity for South African consumers. Physical brick-and-mortar stores are a long way from ever being obsolete. Click &collect models provide benefits for both consumers and retailers, they keep delivery costs low and provide consumers with a more streamlined and convenient shopping experience. Plus, if you are bringing people into your store to pick up goods, they are more likely to make another purchase. South African retailers will need to continue focusing on integrating their online shops with physical store offerings.

Sustainable change

Consumers are a lot more sustainably conscious. For retailers, this will mean ensuring every step of your supply chain from ordering products all the way to delivery will need to consider environmental impact. Transparency is at the core of this trend, with consumers wanting to be told what measures the retailer is taking to lessen their impact. Consumers will be more inclined to buy a product if they know that the packaging and product are sustainable. In the US, 66% of consumers are willing to pay more for sustainable products.

Price vs brand loyalty

As a direct impact of inflation, the average South African shopper is feeling more stretched than ever. According to McKinseyGlobal Consumer Sentiment Survey, 32% of shoppers in South Africa report substituting branded products with cheaper alternatives. Retailers will need to appeal to a more budget-aware consumer, by stocking products that appeal to a range of earning powers.  

More Reading

How to find a business mentor

How to find the right business mentor

Top 5 short courses

Top 5 Short Courses for South African Small Business Owners

Top Industries in South Africa

The Top 5 Industries for SMEs in 2024

Franchise Funding

How to secure funding for a franchise

Working capital

How Much Working Capital Do I Need?

Funding

When is the Right Time to Apply for Funding?

Budget

Decoding the 2024 South African Budget: What it Means for SMEs

Navigating Tax Penalties in South Africa

Navigating Tax Penalties in SA: leveraging business loans to stay ahead

Alternative finance: exploring non-traditional routes for small business funding

Alternative finance: 5 non-traditional routes for SME funding

How to prepare your small business for the new year

How to prepare your small business for the new year

5 common myths about unsecured business loans

Debunking 5 common myths about unsecured business loans

5 Major Purchase Order Pitfalls and Solutions

5 Major Purchase Order Pitfalls and Solutions for South African SMEs

FundingHub case study - female business owner

FundingHub case study: Female business owner - BuyIt

Purchase Order Funding vs Invoice Discounting

Purchase Order Funding vs Invoice Discounting

Small business tax refresher course

Tax Tune-Up: A short refresher on all things small business tax

Startup vs established business in South Africa

What’s the difference between an established business and a startup in South Africa?

Redefining your business direction as an SME in South Africa

Redefining your business direction as an SME in South Africa

Company registration

Everything you need to know about CIPC company registration

How to create a strong online presence for your SME

How to create a strong online presence for your SME

What are the solar tax incentives for businesses in South Africa?

What are the solar tax incentives for businesses in South Africa?

Risks and rewards of a secured business loan

Risks & rewards of a secured business loan

End of year checklist for small businesses

End-of-year checklist for small businesses

Secured business loan

What assets can I use to get a secured business loan?

Merchant Cash Advance

What transactions can be used to get a Merchant Cash Advance?

SME retail trends

SME retail trends making waves

SME evolution

The evolution of SMEs & business finance

Tactics for SME retailers

How can SA retailers catapult their businesses before the busy season?

Property Backed Loan

Who offers property backed loans in SA?

How long does PO funding take?

Purchase Order Funding – how long does it take?

POF lenders in South Africa

Top 10 Purchase Order Funding Lenders in South Africa

10WaysWholesalerscanincreasesales

10 ways wholesalers can increase sales in South Africa

Budget Speech 2022 South Africa - impact on SMEs

Budget Speech 2022 - the highlights and setbacks for SMEs

A man wearing two different colour shoes

How to Compare Business Loans

A picture of a credit report page on a table with a pot plant.

Business Credit Score vs Personal Credit Score: The Differences & Importance Explained

The word gig economy on a board

The Gig Economy: Why Small Businesses Should Care