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Coloured Segmentation

Challenging misleading perceptions

The Background

Fragmented, stereotyped and misunderstood, South Africa’s 4.4 million strong coloured market is as big as the white market in South Africa, and makes up 63% of the total population in the Western Cape. Despite these statistics, many marketers overlook the obvious opportunity of marketing to the coloured population that has a combined spending power of over R60 billion per year. As a result, brands that might be successful elsewhere in the country aren’t as successful in the Western Cape where the coloured market is predominant. OIL identified that there was an opportunity to better understand this market and to dispel the stereotypes associated with the coloured community.

The Approach

We conducted an in-depth study to provide marketers with a deeper understanding of the dynamics within the Western Cape’s coloured market. We used a mixture of methodologies to do this, including ethnographic research backed up by AMPS/TGI data, and insights gained from social networking sites.

The Insights

It would seem that the term ‘coloured’ is no longer as one-dimensional as many people believe it to be, and since 1994, this market has evolved to become highly complex. Today, rather than being one homogenous group, the coloured population is a diverse group of people who differ dramatically in mindset and lifestyle. In addition, they acknowledge these differences and have a strong need to differentiate themselves within their own community.

The Findings

We identified four segments within the coloured market:

The Escapers:

Loud and proud of who they are, Escapers embrace the coloured stereotype, from kombuistaal to passion gaps. They live for today and often have to face the harsh realities of living in the poverty trap.

The In-Betweeners:

Aspirational but not willing to compromise their lifestyle for long term success, In-Betweeners are medium-term focused, manifesting in their conspicuous consumption of branded goods.

The Achievers:

Achievers were active in the struggle against Apartheid and are optimistic about the future. Although they’re hardworking and successful, they still remain grounded in their community.

The Silver Spooners:

A minority within the coloured population, Silver Spooners are the children of upper income Achiever parents. They are removed from their coloured identity and live a highly affluent lifestyle.

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