To spend or not to spend, that is the brand question
During a downturn brands should reinforce the attributes that make them appealing and differentiated in the eyes of existing customers
Though brand value in SA’s top brands has declined, they are on average weathering the macroeconomic climate better than most. This matches what BrandZ data has historically shown: companies that invest in strong brands during difficult times tend to return to growth faster and more successfully than those that don’t.
Over the past few years, SA marketers have had more than ample justification for being cautious about supporting their brands. Consumers have been challenged on multiple fronts from a VAT increase and high inflation to fuel price hikes and higher education fees. As a result, real disposable income has not kept pace with inflation. And with consumers having less money to spend, brands have had their hands full maintaining their revenue...