Consumer Wallet: Kenyan consumers under pressureMay 22, 2018
Consumer wallet continues to measure what Kenyan consumers are buying and how much they are spending. Kenyans are still recovering from the prolonged election period in 2017 according to mSurvey’s platform Consumer Wallet. The platform which enables businesses to understand consumer spending behaviour in Kenya over time, revealed a steady decline in expenditure from the month of June 2017 till March 2018.
However, despite the shrink in Kenya’s wallet size (which is the average monthly amount spent per person), experts agree that it is bound to normalise as seen between the months of March 2018 and April 2018 that saw an increase in expenditure. Speaking on this trend, mSurvey’s Data Science Lead Samuel Kamande asserts, “Monthly Inflation rates have also gone down since December, and with this trend, consumer power to spend will only go up.”
Currently the purchasing trends have shown that despite the decline in expenditure, wallet share of food, bills, household and personal care have had insignificant changes in amount spent over the last six months. Increase in food costs have led to consumers making trade-offs, meaning that they spend less on other categories.
To better understand the implications of these trends, we looked at Kenyans purchasing habits over the month of April, where we observed a notable increase in expenditure in food, entertainment and transport which increased by 2.2% and household and personal care products that rose by 1.6%. The increased purchase of these products was mainly due to the Easter holidays and the school holidays. The trade-offs made by Kenyans during the month of April were highest in airtime and bills.
The key take-away from our insights was that if a consumer’s income does not increase at the rate of the cost of their ‘daily bread’, the consumer will have to forgo what they consider to be non-essential expenses.
Businesses need to stay updated on these trends to ensure that they are aware of their real competition by understanding where tradeoffs are being made in the market, Consumer Wallet further allows businesses to engage directly with consumers using mobile conversations in real-time, to help businesses better understand their purchasing / spending trends and habits.
Speak to us today to learn how your consumers spend with Consumer Wallet !