South Africans are even more concerned about the safety of their personal data than their global counterparts as cybercrime becomes an everyday phenomenon.
The vast majority of local consumers — 92% — consider the safeguarding of their personal data to be essential for companies that aim to gain their trust, well above the global average of 83%.
The finding is highlighted in PwC’s Voice of the Consumer Survey 2024, in which 1,009 SA respondents contributed. The review encompasses insights and perspectives from over 20,000 consumers across 31 countries and territories. It covers topics such as value for money, environmental stewardship, the adoption of artificial intelligence (AI) and attitudes towards personal data transparency.
When asked specifically about privacy, 89% of respondents said they demanded assurances that their personal information would not be shared. However, only about half of them felt confident that they understood how their data was stored and shared, while 82% expressed concerns about the security of their personal data on social media.
With AI permeating almost every industry, consumer companies are having to shape customer sentiment towards emerging technologies such as generative AI while considering both the current and potential capabilities of these technologies, the survey finds.
“Trust is crucial for consumers and for the companies that sell products and services to them, and as shoppers are confronting a set of overlapping and often mutually reinforcing disruptions — financial, ecological and technological — they are prioritising assurance and reliability from the brands they engage with,” the report states.
The survey also highlights imperatives for SA consumer companies to narrow the consumer trust deficit. These include social media used as a tool to aid in decision-making, incorporating AI while maintaining the human element and safeguarding information to build trust.
On the expenses front, the majority of SA consumers (77%) predicted that their biggest rise in spending over the next six months would be on groceries. Inflation was considered the biggest risk by 75% of local consumers over the next year, followed by macroeconomic instability (55%) and social inequality (40%)
PwC Africa retail industry leader Anton Hugo said: “While consumers largely accepted the price increases of the Covid-19 era, they are showing little tolerance for continued rises, especially as they turn their attention to mounting non-discretionary spending.
“This has resulted in consumers searching for better value for their money, with 44% saying they would consider switching from their preferred brands to more affordable options, while only 7% said they would buy a luxury item with their leftover income after paying for bills and essentials.”
According to PwC data, consumer expectations are changing towards a blend of online and offline experiences. This necessitates brands and retailers adopting a flexible, omnichannel approach to meet these demands effectively.
Most consumers (83%) agreed to some extent that they compared prices of items between different apps, while 75% agreed to some extent that if they needed to buy items from multiple stores they preferred to visit the shops physically, and 69% agreed to some extent that they used apps to check the prices of goods but then made purchases in-store.
Nqaba Ndiweni, PwC Africa’s consumer, industrial products and services industry leader, said: “Not all retailers are offering alternatives to the physical store yet, as consumers enjoy freedom of choice conveniences when shopping in a physical store. Physical stores provide a sensory experience that other platforms don’t.”
In the survey, 80% of local respondents expressed concerns about developments in generative AI.
PwC SA consulting partner Dave Ives said consumers were less confident about the use of generative AI in higher-risk, more personal services such as healthcare. That means companies must tread carefully in integrating technology that can reduce operating costs, addressing consumer concerns and maintaining ethical standards.
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