Proudly SA goals and consumer perceptions do not align

As SA’s official “buy local” advocacy effort, the Proudly SA campaign is linked to the government’s goal of addressing poverty, inequality and unemployment. The campaign seeks to influence local procurement to increase production and encourage consumers to buy from local businesses and stimulate job creation.

Local businesses that manufacture SA-made products in accordance with quality assurance requirements and adhere to the highest industry standards may display the Proudly SA logo on their products. Consumers can then identify which products are created in the country, thereby supporting the local economy. 

The Proudly SA campaign boosts local business activity in multiple ways. Speaking in November 2023, YaMama Gemmer proprietor Mosibudi Makgato said: “You tend to be trusted by customers, especially those who are keen to support local businesses. There’s also the credibility that comes from knowing you’ve been vetted because you’re ‘Proudly South African’.

“With such knowledge, individuals can easily make purchases ... Corporates trust you more. They believe you are authentic if you are affiliated with Proudly SA. When you have that emblem on your product, you really have done your homework as a small business.”

Proudly SA CEO Eustace Mashimbye says novice entrepreneurs can also profit from the logo’s legitimacy through enhanced market awareness. “Proudly SA offers a valuable platform for networking, connecting entrepreneurs with like-minded individuals, industry experts and potential partners, fostering collaborations and mentorship opportunities. Members gain access to a wealth of resources and support services, including business development programmes, training workshops and funding opportunities.”

Unfortunately, not all South Africans share the positive sentiments intended by the Proudly SA campaign. In fact, some products are distrusted because of the Proudly SA emblem. We uncovered these conflicting sentiments in our 2023 study of online focus groups with consumers aged 18-65, of whom more than half were male.  

We found that some customers have good feelings about the Proudly SA campaign, stating that when they see the logo on products they feel proud and find it helpful to identify products that will stimulate local economic growth.  

One said: “I am positive towards Proudly SA products; we know that this thing is produced in SA, and that means they’re also employing somebody to do that.” Another consumer stated: “It’s something that came from us as a country ... It’s a good feeling.” Consumers confirmed that the logo helped them identify SA-made products: “That’s good. How else can we tell if the brand was produced in SA?”

However, consumers in the study were also concerned that some firms using the Proudly SA logo inflated their prices and offered lower-quality products. One consumer said: “I’m a little conflicted about the Proudly SA sign because I believe most big corporations are increasing prices because of [the logo]. They realise we want to improve our community.”  

Some consumers reported feeling exploited by local businesses that employed this emblem, stating, “We know that SA products are usually cheaper. But in the shops, [foreign] brands are [cheaper] than SA products — they’re overpriced.”

Consumers felt the logo was sometimes used to disguise low quality. “Some of the brands will maybe use the Proudly SA logo to hide behind [lack of] quality control” and “some SA brands [that use the Proudly SA logo] are overpriced ... and sometimes the quality is not the actual standard that you are used to [from imports].”  

Whether these consumer perceptions are factual is debatable, but they nevertheless affect purchasing decisions. It is concerning that despite its noble intentions the Proudly SA campaign was met with predominantly negative customer responses in this study. This outcome was unexpected given that the campaign’s goal has always been to encourage South Africans to buy locally produced products based on their pride in the country. Unfortunately, the campaign’s intended goal appears to be misaligned with consumers’ perceptions. 

Over time misaligned intentions and perceptions could erode the brand trust and equity of the Proudly SA campaign. If left unaddressed, local businesses may even refrain from associating their brand with Proudly SA altogether. Furthermore, consumer trust in products with the Proudly SA logo appears to be fading.  

In future, a collaborative endeavour is needed between Proudly SA and local businesses. Proudly SA will have to exercise greater control over the products that are allowed to display the logo and clearly communicate these standards to local businesses. In turn, local businesses must ensure that their products comply with these standards.  

• Esterhuyzen, Theron and Kühn lecture in the department of business management at Stellenbosch University. They write in their personal capacities.