In order to examine how consumers are planning for 2019’s holiday season, GeoPoll conducted our annual holiday season survey in Kenya, Ghana, and South Africa. The survey was administered by SMS in October 2019. Findings demonstrate how consumers are planning for the holidays, what they feel about their country’s economy and their own personal finances, and whether they see advertisements as an important factor in making holiday purchasing decisions.

See a dashboard of key results below and further analysis below. Contact us if you’re interested in purchasing the full dataset.

Perceptions of the Economy in Ghana, Kenya, and South Africa

Results around personal financial stability and perceptions towards each country’s economy show the disparity between different segments of the population; While levels of personal financial stability are relatively split between moderately stable, somewhat stable, and not stable at all, overall respondents rate their economies as either average or poor, with just 12% in Ghana, 4% in Kenya, and 14% in South Africa rating their country’s economy as either good or excellent.

In Kenya and South Africa, a higher percentage reported being not stable financially compared to 2018; In Kenya, 35% reported being not stable, compared to 31% in 2018, and in South Africa 27% reported being not stable financially in 2019, versus 21% who said the same in 2018. In Ghana, however, the percent who are not stable financially decreased from 24% in 2018 to 19% in 2019.

Despite the fact that respondents were unlikely to report being very stable financially, most respondents still predict that their holiday spending will increase this year compared to last year.  In Ghana and Kenya, 43% and 42% respectively reported that their holiday spending will increase, in line with the percentage who reported the same in 2018. Only in South Africa do more respondents believe their holiday spending will decrease than increase; 33% expect their spending to increase, while 39% expect it to decrease.

When we examined why holiday spending may decrease this year, we found making less money and having less savings to be the most-cited reasons across countries, although in Ghana and South Africa respondents were more likely to have less savings, while in Kenya a higher percentage of respondents (47%) report making less money than those who have less savings (39%). For those who expect their holiday spending to increase this year, the most common reason was items being more expensive in Ghana and Kenya, while in South Africa the largest portion of those who expect their spending to increase cited having more savings to spend on the holidays.

In terms of where they expect to get money for holiday spending, the largest group of respondents in each country, 36% overall, plan to use savings, while working more jobs (30%) and reducing other spending (26%) were the second and third most common options.

Africa Holiday Shopping Predictions for 2019

Despite reports of online shopping growing throughout sub-Saharan Africa, including around holiday events such as Black Friday, our study finds that most holiday shopping is still done offline. Overall just 12% report that they will do most of their shopping online, with the highest online shopping numbers being in Ghana, where 14% report that they will shop mostly online, and the lowest in South Africa. While certain purchases may be made online, we find that local markets are the most popular place for holiday shopping in Kenya and Ghana, at 57% each, while in South Africa responses are more split between supermarkets (39%), local markets (27%), and chain retail store (27%).

We also examined the factors that contribute to making holiday purchase decisions, finding that although financial stability is moderate to low, product quality remains a priority over product price. Overall 41% list price as an attribute that is important to them when shopping for others over the holidays, while 52% list quality as an important attribute. Brand name is a less important factor, with only 9% listing this as a consideration when shopping.

While gift purchases are often a focus of retailers around the holidays, GeoPoll’s study finds that the majority of money spent around the holidays goes towards food and drink for entertaining, rather than gifts for others or themselves, general socializing, or travel expenses. Overall 42% report spending the most on supplies for entertaining, with this number being highest in South Africa, at 48%. Ghanaians are the most likely to spend the majority of their money on gifts for traveling, while South Africans also are more likely to spend on travel.

The Impact of Advertisements on Holiday Spending

Advertising spend increases globally around the holidays, and digital media in particular been growing as an important source for retailers looking to reach their target audiences with news of sales and product announcements. Digital ad spend has been increasing not only in the US, where $6 billion was spent over the period from Black Friday to Cyber Monday, but also in Africa and the Middle East, where expenditures on social media and other digital advertising channels are increasing.

To find out the impact of all these advertisements on consumers, we asked respondents how often they pay attention to product advertisements when looking for holiday gifts, finding that most respondents, 37% ‘sometimes’ pay attention to advertisements. Overall 22% report that they always pay attention to advertisements for holiday spending, with the highest proportion of those respondents coming from South Africa and the lowest from Ghana, while 17% say they often pay attention. A combined total of 24% say they never or rarely pay attention to advertisements, demonstrating that more people are paying some attention to advertisements than those who do not take them into account at all while shopping.

Illustrating the growing importance of digital media, we find that social media is a strong second behind TV as the biggest source of advertisements for holiday products: While 35% say they most often see holiday ads on TV, 29% report that social media platforms are the biggest source of holiday advertisements and 9% report that they most often see ads on online news sites. Radio, traditionally one of the widest-reaching mediums for advertisements in Africa, was listed by only 12% as the medium where they most often see holiday advertisements.

Gather Data on Holiday Plans with GeoPoll

Using GeoPoll’s database of respondents throughout emerging markets and mobile survey platform, you can conduct custom research on how consumers plan to shop and entertain this holiday season. In addition, GeoPoll Audience Measurement provides advertisers with the most up to date data available on the best timeslots to reach your target audience. If you’re interested in conducting your own research with GeoPoll, please contact us today.

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This report displays survey respondent feedback from consumers in Ghana, South Africa, and Kenya. Comparisons are made between the preferences and behavior across the countries studied through this year’s survey, as well as 2017 survey results.

Survey Methodology

There were surveys conducted in three, key African markets: Ghana, Kenya, and South Africa. The surveys were completed in mid-December through SMS. Gender distribution was roughly equal between males and females. Respondents were spread across all age groups, with an average of 43% aged 35 years old and above.

Black Friday

2017 VS 2018

In 2017, GeoPoll dispatched a survey about Black Friday at this same time of year. Two of the countries surveyed overlapped, as well as two of the questions asked. The following results compare 2017’s survey responses to 2018’s survey responses surrounding Black Friday participation and product purchases.

QUESTION: “Did you shop on Black Friday this year?”

2018 RESULTS VS 2017 RESULTS:

According to the results, significantly more South Africans shopped Black Friday sales than Kenyans in both 2017 and 2018. Not only that, but also South Africans increased in reported participation in Black Friday shopping from 2017 to 2018, yet Kenyans drastically decreased. This shows that Black Friday sales incentivize shopping heavily in South Africa. In Kenya however, Black Friday sales are not as influential to consumer purchasing behavior.

Let’s take a deeper look at the purchases made by these consumers year-over-year during Black Friday. The consumers who did report shopping on Black Friday were asked the following question,

QUESTION: “Select all that apply. Which of the following items did you purchase during the Black Friday sale? 1) Household appliances 2) Beauty accessories 3) Clothing and footwear 4) Electronics and accessories 5) Food items 6) Baby items 7) Other”

2018 RESULTS VS 2017 RESULTS:

As you can see in the above graphs, there were significant shifts in the categories of products purchased most in both South Africa and Kenya. Although the majority of Kenyans did not participate in Black Friday shopping, those who did participate were quite interested in Electronics and technology accessories in both 2017 and 2018.

Trends in the data from the two above charts indicate that shoppers may be most interested in purchasing basic day-to-day items, like food, clothing, and electronics, during Black Friday sales rather than more extravagant items, like beauty accessories.

Also, it interesting to note that South Africans increased their purchases in every category from 2017 to 2018, while Kenyans decreased their purchases in 4 out of 7 categories. According to these results, South Africans seem to be more engaged in Black Friday as a whole. Business Insider confirms this in a recent article that explains that studies have shown that Black Friday has boomed in popularity more in South Africa than any other country in the world.

2018 Black Friday Ghana, Kenya, South Africa

We also examined participation in the 2018 Black Friday sales in Ghana, as well as South Africa and Kenya.

QUESTION: “Have you shopped on Black Friday in previous years?” 

RESULTS:

QUESTION: “Did you shop on Black Friday this year?”

RESULTS:

As shown above, Ghanaians and Kenyans were not as interested in Black Friday shopping this year or past years, while the majority of South Africans reported shopping on Black Friday both this year and in years past.

When asked why they did not shop on Black Friday, many reported that they were not able due to financial limitations, but in Kenya and Ghana 35% of respondents in each market did not know about the sales—while only 2% of South Africans reported not shopping on Black Friday for that reason.

QUESTION: “Why did you not shop on Black Friday this year?”

RESULTS:

Companies targeting Ghana and Kenya for Black Friday sales may benefit from more advertising surrounding the day of sales.

Holiday Spending

In terms of general holiday shopping, whether on Black Friday or not, most respondents (82% on average) prefer shopping for holiday gifts in-stores rather than online.

Interestingly, respondents typically spend the most money on entertaining guests over the holidays, as you can see below.

QUESTION: “What does the majority of your holiday spending go toward? 1) Food and drink for entertaining 2) Gifts for others 3) Gifts for self 4) Travel expenses 5) Socializing” 

RESULTS:

This data may indicate that in each of these three markets quality time spent with loved ones is more important to people than gifts during the holidays.

We then looked at the drivers for holiday purchasing for both oneself and others. We compare the results in the below graphs,

QUESTION: “Select all that apply. When shopping for others during the holidays what attribute is most important to you? 1) Price 2) Quality 3) Band name 4) Convenience”

QUESTION: “Select all that apply. When shopping for yourself during the holidays what attribute is most important to you? 1) Price 2) Quality 3) Band name 4) Convenience” 

PURCHASE CONSIDERATIONS FOR SELF VS PURCHASE CONSIDERATIONS FOR OTHERS RESULTS:

Quality is the primary consideration across all three markets, whether the product is for oneself or others. Out of the three markets, South Africa was the highest price-considering group, which is especially interesting because South Africans have reported much higher interest in Black Friday sales. It is apparent from these findings that South Africans have an affinity for bargains.

Finally, we asked respondents about impulse purchases that they made during holiday shopping to gain insight on how susceptible shoppers are to captivating in-store displays and stumbling upon holiday sales.

QUESTION: “Before holiday shopping for others do you? 1) Plan ahead 2) Plan most & make some impulse purchase 3) Plan some & make some impulse purchases 4) Don’t plan ahead”

QUESTION: “Before holiday shopping for yourself do you? 1) Plan ahead 2) Plan most & make some impulse purchase 3) Plan some & make some impulse purchases 4) Don’t plan ahead”

PURCHASES FOR SELF VS PURCHASES FOR OTHERS RESULTS:

Whether shopping for others or themselves, the majority of respondents in each of the markets report strictly planning ahead. The majority of respondents do not make impulse purchases when shopping for themselves or others. Although the majority do not make impulse purchases when holiday shopping, there are still quite a few shoppers who are influenced by their impulses while shopping. 8% on average do not plan ahead when they holiday shop for themselves or for others. 17% on average plan some and make some purchases on impulse for both themselves and others. And 19% on average plan most of their gifts ahead of time but do make impulse buys for themselves and others as well.

This information can indicate that stores may benefit more from advertising heavily before the holiday shopping season begins in order to influence purchase considerations in the planning period for holiday shopping. And although most respondents plan ahead, there are still consumers who do make impulse purchases, so in-store displays and pop-up sales may influence purchase decisions.

Conclusion

Overall, GeoPoll has found that South Africans are the most engaged in Black Friday shopping out of South Africa, Ghana, and Kenya, and are the most price-conscious consumers out of the three markets we analyzed.  Holiday shopping is primarily conducted in-stores rather than online. Consumers are planning focused when holiday shopping. And entertaining loved ones is of key importance during the holidays—even more important that gifts.

GeoPoll conducts regular research on consumer behavior, customer satisfaction, and advertising awareness. GeoPoll staff are experts in hard-to-reach areas of the world and can provide assistance through each step in the research process. Contact us today to inquire about your research needs.

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