Focus on South Africa’s changing consumer trends

The 2024 Black Friday was a resounding success for retailers in South Africa, with many reporting record sales. Essential items such as cooking oil, milk, maize meal, toilet paper, and baby diapers flew off the shelves. In addition to these necessities, big-ticket items like air fryers and air conditioners were top sellers. To delve deeper into the trends of Black Friday and Cyber Monday, CNBC Africa spoke with Gregory Van Eden, Chief Financial Officer at Superbalist. According to Van Eden, the timing of Black Friday played a significant role in the consumer behavior this year compared to last year. The immediacy of the Black Friday sales following payday in 2023 resulted in a different spending pattern than in 2024, where Black Friday fell later in the month after payday. Despite this shift in timing, the overall strength of consumer spending was evident, indicating an optimistic outlook for the future. Van Eden noted that lower interest rates and increased social grant payments contributed to consumers feeling more confident in spending. Superbalist's online platform saw a surge in sales of summer-related items such as sandals, sneakers, and fragrances. The company made a deliberate effort to offer brand-new items at discounted prices, emphasizing quality and longevity over fast fashion trends. Competition in the e-commerce space has intensified with the entrance of new players like Shein and Temu. While these competitors have expanded the online market, Superbalist has managed to increase its market share within e-commerce. The rise of e-commerce penetration has been a significant factor in driving sales growth and customer acquisition for the platform. Addressing the evolving landscape of Black Friday and Cyber Monday sales, Van Eden highlighted the extended shopping period and blurring lines between the two events. As online retailers continue to offer discounts over an extended period, traditional brick-and-mortar stores are adjusting their strategies to accommodate the shift toward online shopping. Superbalist's logistical capabilities, backed by a partnership with Takealot, ensured a seamless fulfillment process for orders during Black Friday. With a focus on delivering high-quality service and minimizing errors, the platform achieved swift order processing and timely deliveries to customers. Looking ahead to 2025, Van Eden expressed optimism about the state of the South African consumer. With lower inflation and interest rates, consumers are expected to gradually increase discretionary spending on luxury items. Superbalist anticipates further growth by offering a wide range of premium brands on its platform. In conclusion, the 2024 Black Friday highlighted shifting consumer preferences and buying patterns in South Africa. Superbalist's success in catering to these trends underscores the resilience and adaptability of the e-commerce sector in meeting evolving consumer demands. As the new year approaches, the outlook remains positive for both the company and the South African consumer.