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Consumer spending turns

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Despite challenging economic conditions, retail sales growth for July 2017 was the highest recorded for that month since 2015 according to the Mastercard SpendingPulse report.

Nominal (not adjusting for price changes/inflation) July retail sales grew 7.2 percent versus the same month last year, marking the 55th consecutive month of positive growth. Volume retail sales – which removes the effects of inflation – for July also saw a positive increase of 2.3 percent year-over-year, indicating that consumer spending remains resilient, despite higher consumer prices.

“The continued growth in retail sales in July is encouraging, and points to a slight improvement in the consumer economy as the country emerges from a technical recession,” says Sarah Quinlan, Senior Vice President and Group Head of Market Insights for Mastercard. “South Africa’s consumer has shown resilience in the face of weak wage growth and high unemployment, reported at 27.7 percent in the second quarter.”

The average growth rate of the past three months was up 2.3 percent year-over-year, slightly above the 2.1 percent growth rate in the second quarter of this year. For the past 12 months, volume retail sales are less favourable, growing by only 0.2 percent. This is slightly underperforming GDP, which rose 0.3 percent in 2016 and is forecast to increase to 0.7 percent in 2017.

“While consumer spending is showing signs of recovery, South Africans still face a challenging macro-economic environment. The economic health of the consumer warrants close monitoring as the economy looks to regain its footing,” says Quinlan.

Mastercard SpendingPulse South Africa reports on national retail sales and uses aggregated and anonymous Mastercard transaction data, coupled with survey-based estimates for other payment forms including cash and cheque, to offer insight into consumer spending trends and the South African economy. Available to subscribers on a monthly basis, the report also includes an overall retail sales and price index to illustrate whether spending growth is being driven by increased shopping or by inflation or increased promotions.

“Providing both timely and insightful data on retail spending trends, Mastercard’s new monthly macro-economic report will offer an early overview of market indices to help retailers, investors, card issuers, banks and government agencies in their decision-making processes,” says Mark Elliott, Division President for Mastercard, Southern Africa.

In addition to reporting trends for the retail sector as a whole, the inaugural SpendingPulse South Africa breaks out sales growth trends for General Dealers, and Pharmaceutical, Medical Goods, Cosmetics and Toiletries. These sectors together account for over half of South Africa’s retail sales volume.

Pharmaceutical, Medical Goods, Cosmetic and Toiletry sales have outperformed other retail segments over the past 12 months, with sales volumes rising 3.4 percent.  However, momentum has weakened since the start of the year, with sales volume in July rising two percent year-on-year, slightly slower than retail as a whole. Price inflation for products and services in the health sector accelerated from 5.3 percent year-on-year for July 2016 to seven percent for July 2017.

On the opposite end of the spectrum, General Dealer sales have underperformed, with sales volumes falling 0.3 percent year-on-year in July, and the value of retail sales down 1.1 percent over the past 12 months.

“Consumers spent less and consumed less, partly because inflation has eroded their spending power. South Africa’s CPI increased 4.6 percent, driven largely by a 6.8 percent rise in food prices,” says Quinlan.

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Now download a bank account

Absa has introduced an end-to-end account opening for new customers, through the Absa Banking App, which can be downloaded from the Android and Apple app stores. This follows the launch of the world first ChatBanking on WhatsApp service.

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This “download your account” feature enables new customers to Absa, to open a Cheque account, order their card and start transacting on the Absa Banking App, all within minutes, from anywhere and at any time, by downloading it from the App stores.

“Overall, this new capability is not only expected to enhance the customer’s digital experience, but we expect to leverage this in our branches, bringing digital experiences to the branch environment and making it easier for our customers to join and bank with us regardless of where they may be,” says Aupa Monyatsi, Managing Executive for Virtual Channels at Absa Retail & Business Banking.

“With this innovation comes the need to ensure that the security of our customers is at the heart of our digital experience, this is why the digital onboarding experience for this feature includes a high-quality facial matching check with the Department of Home Affairs to verify the customer’s identity, ensuring that we have the most up to date information of our clients. Security is supremely important for us.”

The new version of the Absa Banking App is now available in the Apple and Android App stores, and anyone with a South African ID can become an Absa customer, by following these simple steps:

  1. Download the Absa App
  2. Choose the account you would like to open
  3. Tell us who you are
  4. To keep you safe, we will verify your cell phone number
  5. Take a selfie, and we will do facial matching with the Department of Home Affairs to confirm you are who you say you are
  6. Tell us where you live
  7. Let us know what you do for a living and your income
  8. Click Apply.

 

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How we use phones to avoid human contact

A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.

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Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances. 

Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?

The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.

In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.

Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.

Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”

To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:

·         I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?

With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.

·         Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?

Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.

·         I’ve lost my phone! How will I keep myself entertained now?

Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.

 

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