Tariffs and Bases Affecting Purchasing Habits

Are you really changing your shopping habits because of rising taxes and global tariffs? This data reveals that most South Africans are fully aware of the increases but are now forced to choose cheaper substitutes just to make ends meet.

Consumer Awareness and Cost Consideration

The data clearly indicates that global tax and tariff changes are not abstract policies but visible pressures felt at the till.

High Awareness of Price Drivers

The vast majority of consumers are aware of the fiscal landscape. An overwhelming 90% of respondents are at least generally aware of recent increases. Crucially:

• 59% report being fully aware of the specific increases that affect the prices of goods and services, underscoring that these changes have broken through into public consciousness.
• Only a marginal 3% report being completely unaware.

Selective Cost Integration

Despite this high awareness, how actively consumers factor these costs into every purchase is split:

• 47% report they consider these increased costs for most or all purchases (29% for most, 18% always).
• A slightly larger group (54%) only sometimes or rarely factors them in (37% sometimes, 17% rarely).

This suggests that for many essential, non-discretionary purchases, the increased cost is simply absorbed into the family budget.

Consider this:

• How can local media campaigns better educate the public on the specific breakdown of taxes and tariffs in essential goods?
• What is the fiscal threshold at which "selective cost integration" gives way to universal cost avoidance for non-essential items?
• Does a high awareness of price drivers (59%) lead to greater voter accountability during election cycles?

Direct Impact on Purchasing Behaviour

The pressure is translating directly into cancelled purchases and a pervasive shift toward cheaper alternatives.

Price Sensitivity and Purchase Avoidance

Price increases, particularly those attributed to taxes or tariffs, are now a significant deterrent to spending.

• 35% of consumers have definitely decided against buying a product or service due to such a price hike.
• When combined with the 41% who considered cancelling but proceeded, a massive 76% of the market is displaying heightened price sensitivity and caution when spending.
• Only 16% state that price increases generally don't deter them if they need or want something.

The "Trading Down" Strategy

The single most prevalent behavioral response to the rising cost of goods and services is the search for value.

• An overwhelming 88% of the market (37% frequently + 51% sometimes) are actively buying cheaper alternatives or substitutes for products they previously purchased.
• This "trading down" demonstrates a powerful consumer pushback, where brand loyalty and previous habits are being sacrificed for affordability and budget survival.

Consider this:

• What is the long-term impact on domestic brand loyalty when 88% of consumers are actively "trading down"?
• How does the 76% rate of price sensitivity affect the risk assessment for retailers planning new product launches or inventory levels?
• Can a national strategy be developed to promote high-quality, mid-tier local brands to capture the consumers "trading down" from premium international goods?

The Categories Feeling the Heaviest Pinch

When assessing which goods and services have most influenced purchasing habits as a result of price increases, essentials and highly taxed/tariffed items dominate the list:

• Basic Food Items (e.g., milk, bread, sugar, etc.): 75%
• Clothing and Footwear: 62%
• Personal Care Items (e.g., toothpaste, soap, shampoo): 48%
• Public Transportation (e.g., bus fares, taxi fares, train tickets): 47%
• Fuel and Utilities (e.g., petrol, electricity, LP gas): 46%
• Imported Electronics (e.g., smartphones, laptops): 46%
• Imported Foods (e.g., cheeses, coffee, olive oil): 34%
• Alcoholic Beverages: 29%
• Tobacco Products: 13%

Essentials Under Pressure: Basic Food Items and Clothing and Footwear stand out, highlighting the severity of the financial squeeze on fundamental, non-negotiable household needs.

Non-Discretionary and Imported Costs: Expenses related to mobility, utilities, and high-tariff goods (Public Transportation, Fuel and Utilities, and Imported Electronics) are also major pain points, confirming that almost no category is immune to cost inflation.

Consider this:

• What specific government or NGO interventions could mitigate the cost impact on "Basic Food Items," which affect 75% of consumers?
• How does the price pressure on "Imported Electronics" (46%) impact South Africa's digital inclusion goals for education and business?
• What is the secondary economic effect of reduced spending on "Clothing and Footwear" (62%) on the local textile manufacturing sector?

The New South African Shopping Experience

The overall household shopping experience has fundamentally changed, becoming a more stressful, high-attention task.

Changes to the shopping experience include:

• I pay much closer attention to prices: 57%
• I primarily purchase less expensive brands or alternatives: 42%
• The shopping process has become more stressful: 28%
• I buy fewer items overall: 23%
• No significant changes: 12%

Increased Vigilance and Stress: This data confirms that for over half the population, shopping is a task characterized by heightened vigilance (57%) and financial anxiety (28%).

Brand Switching is the New Norm: The conscious act of searching for value is evident, with 42% confirming they primarily purchase less expensive brands or alternatives, reinforcing the prevalence of the "trading down" strategy.

Local vs. Imported Preference

In terms of product origin, the market is split:

• The majority (51%) hold no particular preference between local and imported goods, suggesting that factors like price and quality still trump origin.
• A significant minority (45%—17% strongly prefer + 28% generally prefer) does express a general or strong preference for local products, indicating an openness to "Buy Local" initiatives where the price differential is manageable.

Consider this:

• How can retailers adapt their store layouts and marketing to ease the shopping stress felt by 28% of consumers?
• Given that 51% are price-driven, what price differential makes the "Buy Local" preference of the 45% group actionable?
• What are the long-term psychological and health costs associated with the "increased vigilance and stress" (57% and 28%) during routine shopping tasks?

Conclusion:

The data confirms a simple reality: the South African consumer is highly stressed and focused on survival. With an overwhelming 88% actively "trading down" to cheaper substitutes, brand loyalty is secondary to affordability. The pressure is most severe on Basic Food Items, influencing the purchasing habits of 75% of consumers, confirming a crisis of essentials. As 76% of consumers have cancelled or considered cancelling a purchase due to cost, the market has fundamentally shifted. The new norm is a vigilant, price-sensitive shopper for whom value is non-negotiable.

Consumers are sacrificing brand loyalty for survival! How should your pricing strategy adapt to the 88% who are actively 'trading down'?

Leverage Field Agent's deep consumer data to inform your next move!

Regards,

The Field Agent Team.