Consumer Optimism Hits New Low as cost of living rise – Kantar

The Kantar Africa Life Report 2023 reveals that consumer optimism has plummeted to 50%, a significant drop from 70% in 2019. This decline indicates that consumers are now more cautious with their expenditures, adopting several strategies to manage their finances:

• Buying fewer items
• Reducing purchase frequency
• Prioritising critical items
• Opting for cheaper alternatives
• Seeking out cheaper purchase channels
• Changing interactions with financial institutions, with an increased reliance on micro-lending and informal banking solutions.

Kenya Red Cross Gains Popularity The Kenya Red Cross has maintained its position in the Top 3 brands, largely due to its prompt response to the El Niño floods in 2023. The organisation’s efforts in high-risk zones have been recognised and appreciated by consumers, enhancing its reputation and popularity.

Supa Loaf’s Rise to Prominence Supa Loaf, the only food brand in this year’s top rankings, has jumped from Rank 13 in 2022 to Rank 5. This surge is attributed to its long-standing heritage of over 50 years and the fact that bread remains a staple for low-income Kenyan households.

M-KOPA’s Significant Climb M-KOPA, a provider of affordable financing and solar energy solutions, has risen dramatically from Rank 36 in 2022 to Rank 6 this year. The brand’s flexible services resonate with the cautious spending habits of low-income consumers, offering manageable payment options that fit their needs.

Shift in Media Consumption For the first time, three media channels—Citizen TV, Radio Citizen, and The Daily Nation—have appeared in the Top 10. This shift reflects a global trend of declining subscriptions to paid streaming services, as reported by Forbes in February 2024. Locally, consumers are increasingly engaging with free content-based services, moving away from discretionary spending on non-essential products and services.

Kenpoly’s Continued Relevance Kenpoly has remained in the Top 10, known for its disposable cups that are popular at informal social gatherings for quick consumption of beverages.

Bamburi Cement’s Steady Position Bamburi Cement also continues to hold its place in the Top 10, driven by Kenya’s growing population and urbanisation.

E-commerce and Consumer Research With the rise of e-commerce, consumers are more thoroughly researching products before making purchase decisions. There is a growing emphasis on differentiation, with premium brands facing punishment if they do not stand out from low-priced mainstream alternatives.

Betting Companies Lose Relevance In challenging economic times, some brands lose their relevance. Notably, no betting companies feature in the top 10 this year, indicating that consumers are no longer spending their limited disposable income on betting.

Impact of the Superbrands Seal The Superbrands seal remains influential, with 8 out of 10 respondents indicating they are more likely to choose a brand featuring the seal. This affiliation is believed to enhance a company’s reputation and help them stand out from the competition, a trend consistent with findings from the previous study in 2022.

Jawad Jaffer, Project Manager at Superbrands East Africa, remarked, “Once again, the study has emerged as a barometer for changing consumer needs and preferences. Brands must strive to provide value to climb the ranks as consumers prioritise needs over wants.”