South Africans focussing on wellbeing, balancing purpose with earning more – Deloitte

1st December 2021

By: Donna Slater

Features Deputy Editor and Chief Photographer

     

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Compared with 12 months ago, South Africans show a strong shift to introspection and their wellbeing, while also seeking to better balance purpose with earning more money, professional services firm Deloitte’s 'State of the South African Consumer Tracker' report states.

The study obtained information from consumers in 23 countries, including South Africa, Australia, Belgium, Brazil, Canada, China, Denmark, France, Germany India, Ireland, Italy, Japan, Mexico, Netherlands, Norway, Poland, South Korea, Spain, Sweden, Switzerland, the UK and the US.

In terms of consumer aspirations, Deloitte consulting consumer industry leader Rodger George says the report finds that there has been an increased focus on home-centricity, as opposed to spending more time away from home; while there were also signs of consumers wanting more in-person interaction, as opposed to replacing in-person interaction with digital services.

Also growing exponentially was the factor of social distrust, as opposed to people trusting strangers. “People are really more careful around people they do not know and, as a result of that, we probably find that the need for social interaction is going to be focused around families and close associates and smaller networks of friends,” he says.

As for striking a work-life balance, the report shows that more people are working harder to get ahead, while fewer people are finding more time to enjoy the present. This shift, to what George says is the “wrong” side of the scale, shows people are definitely working much harder to get ahead. “That probably ties into the focus on earning more money.”

However, in terms of saving money, the report illustrates more people are expressing the desire to save, while fewer are spending more money to enjoy the present. In this regard, the report also finds that consumers are spending more money on experiences, as opposed to spending money on physical possessions.

The shift in savings culture was “quite interesting” he says, as past surveys had pointed to South Africans generally having a depressed savings culture. “Whether people are actually going to save or not, and whether they have the means to save is a different discussion,” says George.

In terms of consumers facing financial anxiety – a factor Deloitte started measuring in September 2020 – the firm notes that 76% of people surveyed were concerned about the balances of their credit card and the ability to repay their debt. This concern was ongoing throughout the Covid-19 pandemic.

However, he says that, “what seems to be a Covid-19 pandemic actually is masking a financial pandemic. Consumers are financially strapped. [South Africans] are ten percentage points higher than the global average of people being concerned about making upcoming payments.

"Twenty-nine per cent of South Africans are more concerned about the money they are not able to save, and there is a huge concern around credit card debt. The cash-strapped consumer is still quite tightly pressed.”

The report finds that 10% of South Africans are concerned about not being able to make upcoming payments, while 29% are concerned about not meeting personal saving targets and another 29% are concerned about credit card debt.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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