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SA consumers have mixed feelings about social commerce

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 12 Jul 2024
Trust is a crucial for consumers who shop via social media platforms.
Trust is a crucial for consumers who shop via social media platforms.

Only half of surveyed consumers feel confident that brands uphold data privacy and protection ethics for customers who shop on social media platforms.

This is one of the key findings of PwC’s Voice of the Consumer Survey 2024, which analyses consumer sentiments and purchasing decisions across the globe.

A total of 1 009 South Africans participated in the global survey, which reflects the insights and perspectives of more than 20 000 consumers across 31 countries and territories on a range of issues, including finding value for money, caring for the environment, embracing artificial intelligence and being open about their data.

Data from the survey indicates consumers have evolving expectations for a dynamic mix of online and offline experiences − therefore, brands and retailers need to embrace a more flexible omni-channel strategy to meet these expectations.

Around 41% of surveyed local consumers say they directly buy products through social media, while 83% said they use social media channels to discover new brands (global average: 67%); and 82% of consumers say they seek reviews to validate a company before making a purchase (global average: 70%).

Social commerce can be defined as the use of social networking websites such as Facebook, Instagram, TikTok and Pinterest as vehicles to promote and sell commercial products and services.

“While social media inevitably plays a key role in how consumers shop, our report indicates South African consumers have mixed feelings about social media, with surveyed respondents ranking the social media industry second lowest (5.8 on a scale of 0 to 10) among 12 industries. Some consumers are questioning its safety and reliability when it comes to data protection,” notes the survey.

In SA, Generation Z is increasingly turning to social media platforms − like Facebook, Instagram and TikTok − for their online shopping needs, notes the report.

An overwhelming majority of South African consumers (92%) say protection of their personal data is one of the most crucial factors for companies needing to earn their trust (9% higher than the global average of 83%).

When asked specifically about privacy, a significant majority (89%) say they demand assurances that their personal information won’t be shared. However, only around half feel confident they understand how their data is stored and shared by brands, while 82% express concerns about the security of their personal data on social media.

Building consumer trust

More than three-quarters (77%) of South African consumers expect the most significant increase in spending in the next six months to be on groceries. At the same time, 75% of local consumers rank inflation as the number one risk they believe could impact the country over the next year, followed by macro-economic volatility (55%) and social inequality (40%).

Global social media advertising spending alone is projected to reach $220 billion this year, up from the $207 billion estimated for 2023, according to the study.

This includes a strong focus on social influencers − widely recognisable celebrities and aspiring individuals who are now an established channel. The survey found they have influenced 44% of South African consumers to make a purchase, which is consistent with the global average of 41%.

The study emphasises trust as a crucial attribute for consumers and for the companies that sell products and services to them. And as shoppers are confronting a set of overlapping and often mutually reinforcing disruptions − financial, ecological and technological − they are prioritising assurance and reliability from the brands they engage with.

Anton Hugo, PwC Africa retail industry leader, comments: “The good news for leaders of consumer-facing businesses is that global consumer markets are set to continue expanding.

“The global consumer class − consisting of those spending $12 or more per day − reached four billion last year, and is projected to reach five billion people by 2031.

“The bad news is there’s a widening gap between the trust that executives think consumers place in their companies and the trust that consumers actually have in them. In order to maintain and grow market share, companies must figure out how to build trust in several dimensions.”

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