The township economy in South Africa requires excellence from big businesses.
Unfortunately, many corporate entities fall short of this standard, often displaying a level of disrespect towards the residents of these communities.
This issue becomes evident when you compare the retail stores that have migrated from urban areas to townships. The planning and execution of these stores in townships often seems haphazard and inferior compared with their urban counterparts.
When township residents visit these new retail outlets, they immediately notice the differences. The stores in urban areas typically have better layouts, a wider variety of stock, and superior service. In contrast, the township stores often look poorly designed, offer limited stock, and provide subpar service.
This stark contrast sends a message that businesses believe township residents deserve less, which is a grave misconception. It’s crucial for brands to understand that just because a store is located in a township, it doesn’t mean that the quality of goods and services should be downgraded.
The residents of townships do not want the cheapest options; they want the best. They are well aware of what high-quality goods and services look like, and they demand the same standard. After all, a significant portion of South Africa’s population lives in townships, and they constitute a large part of the country’s workforce.
Quality and variety
They frequently experience the high standards of urban retail spaces and expect the same in their own communities. Therefore, businesses must be deliberate in ensuring that their township stores match the quality and variety of their urban stores. The narrative that township stores should offer inferior quality must end.
Retail brands need to understand that the township economy demands better service and excellence. A notable example is a major wholesale retailer that expanded into the townships, aiming to rebrand some of the successful local wholesalers.
However, their approach was flawed. They imposed their system on these local businesses without considering the unique needs of the township market. For instance, they stocked items like dog food and swimming products, which are not in high demand in townships. This disconnection from the local context led to missed opportunities. To truly respect and succeed in the township economy, businesses must adapt to the existing successful models rather than impose their own systems.
They need to understand how these local businesses have thrived, and integrate those insights into their operations. This approach shows respect for the township economy and its dynamics.
The township economy demands respect, which should be reflected through excellent service delivery. Whatever quality is provided in urban communities should also be available in townships.
Township residents want to feel respected and valued by the brands they support. The township economy does not demand cheap products; it demands the highest level of respect, excellence, and quality because it represents the best of South Africa. Large corporations and multinationals are increasingly looking to tap into the opportunities within the African and South African markets, particularly in townships.
To do so successfully, they must approach the township economy with a high level of respect and a commitment to excellence.
A summary of how retailers should approach townships and their entrepreneurial culture:
- Respect and excellence: Townships must demand the same level of respect and excellence in service and products as urban and suburban areas. The misconception that township residents only want cheap products needs to be dispelled. Quality and variety are equally important.
- Tailored offerings: Businesses need to understand the unique needs and preferences of township communities. Stocking irrelevant products like swimming pool supplies or excessive amounts of dog food shows a lack of understanding and respect for the community’s needs.
- Learning from local success: When big brands venture into townships, they should integrate and learn from the existing successful local businesses rather than imposing their systems and products. This approach respects the established ways of doing business and can lead to more meaningful and sustainable success.
- Economic significance: Townships represent a significant portion of the population and workforce, making them critical to the overall economy. Recognising this, businesses should invest in these areas with the same vigour and commitment as they do in more affluent areas.
- Brand perception: For a brand to be truly successful in townships, it must be seen as caring for and valuing the community. This means providing high-quality products, excellent service, and showing genuine respect for the local economy and its people.
- Future integration: The future of economic growth in South Africa lies in a meaningful integration between corporate South Africa and the township economy. This integration should be based on mutual respect, understanding, and a shared goal of inclusive growth. DM