South Africa’s township economy represents a R900-billion market that continues to challenge assumptions about consumer behaviour and brand loyalty. The 2025 Township Customer Experience (CX) Report, produced by Rogerwilco in partnership with Field & Insights Africa and MoyaApp, reveals an evolving township ecosystem where economic pressure is reshaping how people make choices and what truly drives their allegiance to brands.
From price-driven switching to digital discovery and collective financial resilience, these five lessons highlight what every brand manager should understand about building credibility and sustaining meaningful engagement amongst South Africa’s township shoppers.
Loyalty is rational, not emotional
With food inflation climbing to a 15-month high of 5.1% in June 2025 and the cost of a basic grocery basket now exceeding R5 400, township households are prioritising value over sentiment. The report shows that 39% of consumers switch brands when prices rise, and one in five change stores altogether.
Yet these choices are far from impulsive. A quarter of respondents weigh cost against factors such as quality, convenience and promotions before switching, while 13% reject poor-quality products entirely, even when they cost less.
Suzan Losaba, managing director at Field & Insights Africa, notes that: “Every rand saved provides real relief.”
A multichannel reality reinforces this mindset, with 54% of respondents shopping at supermarkets more often for bulk deals, while 29% increased their spaza purchases for daily convenience. These households are not fickle, they are strategic, spreading spend across outlets to stretch limited budgets.
For brand managers, the takeaway is that loyalty is earned through value and relevance. Consumers will switch products, delay purchases or look elsewhere if their needs are not met.
Spazas are evolving from outlets to partners
The government’s spaza registration drive, which ran from November 2024 to February 2025, has fundamentally shifted perceptions of the informal sector. Of the 49 915 applications received, 19 386 were approved, and 41% of township residents now say they trust spazas more since the initiative.
Nearly half (49%) of respondents prefer spazas run by familiar store owners, and almost as many feel more confident buying from shops where they know the owner by name. These relationships transform everyday transactions into sustained connections that brands cannot replicate through scale alone.
Luigi Ferrini, chief customer officer at Tiger Brands, notes that registered spazas are now better supported through consistent stock, promotional activity and access to training, which helps improve product handling and customer service. “This formalisation has created an opportunity for brands to reinforce reliability,” he says.
For brand managers, the commercial opportunity is significant. Partnering with spaza owners and building hyper-localised campaigns is central to long-term resilience.
As Bongani Mabuza, founder of African Accent, observes, successful models like Shop2Shop’s profit-sharing partnerships and Coca-Cola’s agent system show that when corporates adapt, spazas thrive alongside them.
Taste is non-negotiable, even when budgets are tight
One of the most revealing insights from this year’s Township CX report is that 73% of mass market consumers will not compromise on taste, even when budgets are under pressure. This is particularly evident in the fast food sector, where flavour and satisfaction outweigh price as key loyalty drivers.
The findings challenge the assumption that price-sensitive consumers will accept inferior quality to save money. Township diners may spend less frequently, but when they do, they choose brands that consistently deliver on taste and experience.
The research shows that 34% of respondents spend between R251 and R500 on fast food, mostly from households earning between R1 000 and R9 999. While international brands top the list of favourites, local shisanyamas, kota outlets and street vendors make up a large part of township food culture.
The lesson for brand managers is that quality cannot be sacrificed for affordability. Township consumers will protect the experiences that bring comfort and pride, even when money is tight.
Digital discovery moves faster than word-of-mouth
Township consumers are mobile-first and socially networked, using digital platforms to find deals and connect around shared experiences. The report shows that 70% of those who increased their spaza shopping discovered new products and promotions through Facebook and WhatsApp.
Despite high data costs, connectivity has become a non-negotiable expense, with 37% of households spending between R251 and R500 per month on data, often prioritising it over other essentials. Within this group, 81% access the internet solely through mobile devices, and 77% have no Wi-Fi at home, underscoring the need for low-data, mobile-first experiences.
Content creator Dali Monageng (Dali Danger) points out that discovery now happens faster online than through word of mouth. “TikTok has become a powerful platform for showcasing township food spots. A single video can put a hidden gem on the map overnight.”
For brand managers, this means that advocacy happens organically in community-driven spaces. The strongest influence does not come from corporate messaging but from trusted digital voices. To connect meaningfully, brands must participate authentically, not interrupt conversations but add value to them.
Financial resilience is collective, not individual
Stokvel participation has surged in the townships with 71% of residents now belonging to at least one stokvel, up from 51% just two years ago. Grocery and funeral stokvels dominate, reflecting how communities pool resources to manage essentials and emergencies.
Shana Abrahams, MoyaApp’s head of research, notes that stokvels succeed because they are trusted, accountable and rooted in community. “Banks are seen less as trusted advisors and more as transactional pass-throughs,” she observes.
The contrast with formal banking is stark. While 91% have bank accounts, only 37% feel their bank understands them. The biggest frustrations are high fees (45%) and long distances to branches (28%).
For brand managers across all categories, the insight is broader than financial services. Township consumers value systems that foster belonging, accountability and shared benefit. Brands that replicate these principles will build deeper connections than those offering one-way transactions.
The takeaways: Strategy, empathy and staying power
The 2025 Township CX Report reveals a market driven by strategy, not sentiment. Township consumers are active architects of their own financial and purchasing realities, making deliberate decisions about where, how and why they spend.
For brand managers, success depends on moving from taking value to creating it together. The era of one-size-fits-all campaigns and points-based loyalty programmes is over. What works now is deep understanding, consistent presence and genuine partnership.
Across all five lessons, one principle stands out: township consumers reward brands that meet them where they are. Whether through smaller pack sizes, reliable spaza partnerships, mobile-first digital experiences, uncompromising quality or collective-value financial models, loyalty is sustained through adaptability and care.
The brands that will thrive are those that see township consumers not as a segment to serve but as collaborators in shaping South Africa’s economic future. Loyalty here is not about holding on to customers, it is about staying relevant in their lives, one trusted interaction at a time.
Mongezi Mtati is senior brand strategist at Rogerwilco.
