Shrinking the consumer trust deficit - South African findings

PwC’s Voice of the Consumer Survey 2024

June 11, 2024

Overview

We’re pleased to present the South African findings of our Global Voice of the Consumer 2024, tailored to the unique domestic consumer market to help retailers traverse this challenging landscape.

Companies can strengthen the confidence consumers have in them by executing on six key imperatives

Trust is crucial for consumers and for the companies that sell products and services to them: as shoppers confront a set of overlapping and often mutually reinforcing disruptions—financial, ecological and technological—they are prioritising reassurance and reliability from the brands they engage with.

That’s a signal finding of our inaugural Voice of the Consumer Survey, which builds on insights amassed over 15 years of consumer research by collecting the perspectives of more than 20,000 consumers across 31 countries and territories on a wide range of issues, including caring for the environment, attending to their health, being open about data, finding value for money and embracing AI.

The good news for leaders of consumer-facing businesses: global consumer markets are set to continue expanding. The global consumer class, comprised of those spending US$12 or more per day, reached 4 billion last year, and is projected to reach 5 billion people by 2031. The bad news: 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.

Six consumer trust imperatives

Navigate conflicting priorities in an economy with rising prices, meeting customers’ expectations of value while managing price increases effectively.
Strike a balance with social media use, recognising its significance as a platform for sales and engagement, while being mindful of consumer concerns about its credibility.
Forge bonds with eco-conscious consumers by connecting their intentions to positive environmental impacts.
Incorporate and experiment with AI tools in business operations while maintaining a human element, especially in more complex and personal services.
Safeguard personal data, while continuing to use it to offer personalised services and elevated customer experiences.
Create and promote a product portfolio that reflects consumers’ desires for wellness, nutrition and more sustainable food production.

As global consumer markets continue to expand, companies must move beyond their own perceptions of customer trust and learn what their clients actually think. Senior executives recognise this, and though challenges exist, there are also significant opportunities for those companies that prioritise trust-building efforts rooted in brand building, responsible practices and solid performance.

How we can help

The Voice of the Consumer survey the need of retailers to remain competitive and respond to the rapidly evolving needs and preferences of consumers, with the following key interventions that can encourage successes in the medium term:

We help our clients with reshaping their business models to uncover new revenue streams, optimise operations, and create unforgettable client experiences. Business model reinvention has six main entry points that can open doors for meaningful initiatives to create more value. They are: tech-led transformation, climate, cloud transformation, connected tax compliance, enterprise fit for growth and optimise portfolio.

Today’s retail organisations are no longer isolated enterprises; instead, they’ve become diverse and distributed ecosystems comprised of employees, customers, business partners and suppliers and driven by different processes and systems. We help our client’s with an integration fabric architecture that gives the retailer the agility to move quickly and react to market disruptions in real time, while also reducing cost and time and boosting security and resilience.

Customers are increasingly demanding that retail and consumer companies reduce their carbon footprint in sourcing products locally, use more environmentally friendly packaging, and have a positive impact on the communities they serve.

Retailers who leverage their sustainability initiatives to drive positive reputational sentiment will see brand enhancement and value creation over the longer term.

We help clients accurately measure and report on their social impact and then effectively communicate these.

Utilising specialist skills and technology, we assist clients in complying with South African and international tax-related legislation and regulations, such as carbon tax; transfer pricing; provision for doubtful debts and tax controversy and dispute resolution.

New technology and changing consumer preferences are disrupting retail worldwide, putting pressure on retailers to reinvent how, what and where they serve their customers. We help our client’s reskill and upskill key talent through workforce transformation, integrate technology into the physical store to achieve a phygital customer experience, and reevaluate their business strategy.

Consumer markets remain focused on optimising supply chains and improving distribution infrastructure. Our industry specialists have identified centralisation of distribution systems and logistics management as key drivers leading to operational efficiencies for our clients.

We assist our clients by developing and enhancing organisational strategies, defining customer management and insight strategies, determining the right product mix and delivering the optimal organisational structure, systems and processes to protect existing - and grow new - revenue streams.

Explore the report for a deeper understanding of the current consumer expectations and the strategies leaders can adopt for future success.