Revenues in South Africa’s technical consumer goods market climbed 8% year-on-year in the second quarter of 2018, boosted by a 16% rise in the telecommunications sector and a 17,4% increase in small domestic appliances, according to point of sale data from market research firm, GfK South Africa. The data also shows that the major domestic appliances and consumer IT segments grew by 3% and 6.6% respectively.
The smartphone segment, one of the biggest contributors to South Africa’s technical consumer goods market, was given a boost by growth in sales of larger display devices together with the continued adoption of entry-level smartphones. Hot air fryers continued to drive the expansion of the small domestic appliance market as consumers opted for healthier lifestyles.
“The South African consumer technology market is holding up reasonably well under difficult economic conditions. Consumer confidence in Q2 2018 was significantly up compared to Q2 2017, which helped to lift sales in the consumer technical goods market,” says Kali Moahloli, Commercial Head for Market Insights at GfK South Africa.
“In the telecommunications and IT sector, consumers are looking for value, and vendors are responding with affordable products. Tier-two manufacturers are doing well with value-for-money smartphones with large displays, while we saw strong sales for entry-level (sub-R4000) mobile computers,” says Moahloli.
In the IT segment, sales in the media tablet category continued to deteriorate with a 42% drop in unit sales, while smartphones’ value overall increased by 16%. Revenues in the consumer electronics sector grew 7.8%, driven by strong demand for ultrahigh definition and large screen panel televisions. However, revenues in audio home systems, receivers and headphone categories all dropped sharply.
Other highlights from Q2 2018 include the following:
- Kettles and toasters – the first and fourth largest categories in small domestic appliance units and value – registered double-digit growth in unit sales due to an increase in average selling price and robust consumer demand.
- Entry-level and mid-range units made up 45% of the value of Q2 2018 desktop sales, compared to 28% in Q2 of 2017.
- The monitor market performed well, thanks to better desktop sales and a growing selection of high-value monitors from major brands.
- The photography category enjoyed double-digit year-on-year growth during the second quarter of 2018, lifted by good sales of high-end models and printing cameras. Mid-range cameras did not perform well, however, with consumers sticking to their smartphones for casual photography.
- The office equipment category has continued its decline, falling 5.4% in value. A sharp, double-digit fall in printer cartridge sales and fierce price competition were major factors in this.
New iPhone pricing for SA
The iStore has announced that the latest iPhones, the Xs and Xs Max, can now be pre-ordered at www.myistore.co.za , and will be available in stores starting 28 September 2018.
|iPhone Xs and iPhone Xs Max feature 5.8-inch and 6.5-inch Super Retina displays that offer remarkable brightness and true blacks while showing 60 percent greater dynamic range in HDR photos. iPhone Xs and iPhone Xs Max have an improved dual camera system that offers breakthrough photo and video features, A12 Bionic chip with next-generation Neural Engine, faster Face ID, wider stereo sound, longer battery life, splash and water resistance,
Pre-orders will be open for cash purchases and on iStore’s revised payment plan in partnership with FNB Credit Card, allowing customers to pay off their iPhone at a reduced interest rate. However, the contract period is 37 months rather than the usual 24 months.
Accenture opens Fjord design centre in Johannesburg
Accenture has launched its first design and innovation studio on African soil, Fjord Johannesburg.
The company says the move significantly expands its design capabilities and demonstrates its commitment to unlocking Africa’s innovation potential through the creation of experiences that redefine industries in our constantly evolving digital era.
The new studio, opening in November, will be located at Accenture’s new 3875m² offices in Waterfall. It will be led by Marcel Rossouw, design director and studio lead for Fjord Johannesburg.
Said Rossouw, “Brands are constantly asking, ’how does one take a business need or problem, build that out into a definition of a service experience, and then bring it to market?’ It’s about re-engineering existing service experiences, identifying customer needs, prototyping rapidly, iterating often and proving or disproving assumptions. But it’s also about getting feedback from customers. The combination of these factors helps companies advance towards the ultimate service experience.”
Fjord is the design and innovation consultancy of Accenture Interactive. The Johannesburg location marks its 28th design studio globally, solidifying its position as the world’s leading design powerhouse.
Working in the same location as Accenture Interactive will allow Fjord to fuse its core design strategy DNA with the digital agency’s expertise in marketing, content and commerce to create and deliver the best customer experiences for the world’s leading brands.
Accenture Interactive Africa‘s blend of intelligent design and creative use of technology has already been used by some of South Africa’s largest and most prominent brands, including Alexander Forbes, Discovery, MultiChoice and Nedbank. The digital agency has also earned industry accolades for its innovative and compelling business results, most notably two gold awards in the Service Design category at the 2017 and 2018 Loeries awards.
“Great design tells great stories,” says Wayne Hull, managing director of Accenture Digital and Accenture Interactive lead in Africa. “It unifies a brand, drives innovation and makes the brand or service distinctive and hyper-relevant in both the digital and physical worlds. This is critical to achieving results. Having Fjord Johannesburg as part of Accenture Interactive, and collaborating with all of Accenture Africa, will provide unique experiences and forward-thinking capabilities for our clients.”
“Businesses in South Africa are becoming more design-aware and are looking to take greater advantage of design skills to compete with the rest of the world,” said Thomas Müller, head of Europe, Africa and Latin America at Fjord. “We’re excited to open our first design studio on the continent and to be part of an emerging market that is ripe for design and innovation, and open for business. Developing markets like South Africa are challenging assumptions and norms about what digital services and products are meant to be, and we’ll strive to put design at the heart of the innovation being produced there.”