Insights from 2024 Ti Retail Conference

Image supplied

Four key themes emerged from the discussions:

1. Shopper-Centricity: Understanding and adapting to a new era of shoppers

In an era of immense consumer strain, businesses must remain acutely attuned to shopper behaviour.

Jessica Riley, marketing lead at Smollan, opened the conversation by highlighting the evolving nature of the shopper: “Shoppers are under massive economic pressure. They’re returning to the places where they can find savings, again and again, driven by special offers and price points.”

Nicola Allen, senior nnalyst at Trade Intelligence, built on this concept with her session on decoding shopper data. She highlighted how today’s shoppers are increasingly demanding, prioritising value, convenience, experience, wellness, and sustainability – often all at once.

Graham Rebello, food executive at Massmart, echoed these sentiments, adding that the power now sits with the shopper.

“Shoppers interact with retailers how, where, and when they choose. Reduced loyalty and increased pre-purchase research, often done online, have shifted the dynamic significantly in favour of the consumer.”

Andrea du Plessis from Ti’s Retail Insights team rounded out the ‘shopper’ discussion with her analysis of shopper behaviour in the informal trade. “Shoppers fluidly move between channels based on their needs,” she noted, emphasising that informal outlets dominate when it comes to smaller basket sizes and higher-frequency purchases.

2. Collaboration: The key to navigating a tough trading environment

As South Africa’s market faces stagnation, industry leaders stressed that collaboration is no longer just an option – it’s essential.

“To create sustainable growth in the FMCG industry, engagement and collaboration between suppliers is becoming a critical enabler, to the degree where [they] should be up there with retailer and supplier KPIs, along with profit, turnover and gross profit margin,” says Andrea du Plessis.

Improved industry collaboration was one of the key reasons Ti was initially founded two decades ago – to bridge the gap between retailers’ strategies and operations, and suppliers’ knowledge thereof, as well as provide the skills needed for more effective trading partnerships.

In his presentation, Dylan Piatti, MD Africa at Advantage Group International, highlighted how real-time engagement and mutual trust are crucial to forging strong retailer-supplier partnerships that can weather tough economic conditions.

This sentiment was echoed by Thinus van Schoor of Value Chain Solutions, who stressed the importance of bridging the gap between “making, sourcing, and selling,” urging businesses to “reach over the wall” and collaborate with their partners.

VML’s Future Shopper Report 2024: a global snapshot of the modern shopper

18 Sep 2024

3. Data and technology as enablers of retail innovation

Across nearly every session, the importance of data and technology as key enablers for retail innovation and growth was highlighted.

Kimberley Taylor, CEO of Loop, reminded attendees that while technology is an essential lever for driving efficiencies, “Technology on its own isn’t enough. It’s part of a much bigger system.” Her presentation on redefining convenience through delivery technology explored how companies can enable tech to streamline operations and improve customer experiences.

Harley Caryer, chief growth officer at DataOrbis, highlighted how data is transforming retail operations, stating, “In an industry with low growth, collaboration and clarity around the right metrics are vital to ensure that investments are driving the right outcomes.”

This theme carried through into Massmart Exec Andre Nel’s insights on how retailers are becoming data companies, leveraging cloud computing and data analytics to gain a competitive edge.

4. Informal trade: The new frontier for growth

The informal trade, long seen as a challenging and elusive segment, emerged as a significant opportunity for growth. “The informal market is the white space everyone is going after. Companies that don’t adapt to this space risk falling behind,” explained Kerry Elliot, Retail Industry Expert at Ti.

Mark Cotton from Shoprite Group underlined Shoprite's commitment to supporting spaza shops and smaller retail businesses through innovative solutions to specific problems these enterprises face.

“Our new fully automated Shoprite Cash & Carry B2B online shopping platform provides customers with access to a wide range of goods at highly competitive prices, with free delivery within a 50km radius, increasing convenience and freeing up cash flow for the traders. The solution was as much about giving small business owners back the time they needed to focus on their patrons and business growth, as it was about enabling our own in-store sales associates to provide more personal support and care to our B2B customers.”

The informal trade panel discussion revealed that while there is significant potential, success in this space requires a deep understanding of local nuances.

Freddy Mahhumane from Kasi-D provided a poignant example of how traditional digital media does not resonate with township consumers, and how businesses should focus on face-to-face engagement to build trust.