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Student Marketing: Student spending behaviour - South Africa 2010

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This document summarizes the findings of research into student spending behavior in South Africa. The research was a collaborative project between Student Village and the University of South Africa (UNISA) that surveyed 660 students across various demographic factors. Some of the key findings include: students spend on average R35,616 per year, more than the average South African household; male students spend 15% more than females; ethnic groups have significantly different spending patterns; students who rent have more disposable income than those living with family; and discounts and loyalty programs are highly valued by students. The document provides additional insights into categories of spending and factors that influence student purchasing.

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15 things you didnt know about Student Spending Behaviour Research Findings April 2010 Executive Research Team: Marc Kornberger (Student Village) Ronen Aires (Student Village) Mike Cant (UNISA) Neels Bothma (UNISA)
Question Areas Student Spend Money sources Spending & saving Categories of spend Credit Influencers Online shopping Mobile payment currencies What brands should know
UNISA is one of the largest distance education institutions in the world with over 280 000 students and is classified as one of ten mega-universities in the world by UNESCO The Department of Marketing and Retail Management within the College of Economic and Management Sciences recognises the importance of the student and youth markets to the future well-being of the country The partnership with Student Village brings together the academic and research resources and expertise of UNISA with the leading role that Student Village plays in the student community in South Africa The Department of Marketing and Retail Management is in the process of establishing a centre of excellence which focuses on the student and youth markets. Additional research will be conducted on an ongoing basis in order to explore the needs and roles of young women in SA society as well as to establish the entrepreneurial capacity of our youth in general These research projects will be repeated in the future in order to gain deeper insight into these topics and to see how they are changing from year to year (longitudinal research)
About the Research Research conducted, Feb/March 2010 660 respondents across SA tertiary institutions 18-24 age group Males and Female 80% research conducted in-the- field, 20% online Demographic representative of SA population
15 Things You Didn't Know About Student Spending
1. There is no such thing as an AVERAGE STUDENT
Male >Female Average age 18-23 76% Black 10% Indian 9% White 4.5% Coloured 35% First Year of Study 27% Second Year 20% Third Year 37% Live with Family 29% Renting 24% at Campus Res
2. Students are SPENDING more than you think
R2 968 p.m OR R35 616 p.a
Student Marketing: Student spending behaviour - South Africa 2010
Spending in SA Students 850,000 Student Individual R 28.5 Avg Spend per year: Billion p.a R35,616 R 1.5 SA Individual Trillion p.a Avg Spend per year: SA R32,340 population 47 Mill R 28,500,000,000 R 1,500,000,000,000 Ref: Bureau of Market Research
87% from their parents 26% Part-time or full-time work 11% bursaries
Where the Money Goes
. Where the Money Goes p.m Food, groceries & eating out R652 Rent Clothing & R501 Footwear Entertain Toiletries & R320 R199 Alcohol Cosmetics R197 R153 Airtime R152
3. Guys are SPENDING 15% more than Girls
Food and Groceries 20% Alcoholic beverages 121% Telephone Costs 15% Petrol 150% Gifts for friends 70% Toiletries & Cosmetics 45% Contraception 238%
4. Students from separate ethnic backgrounds spend very differently
1. Black students spend more on food & groceries, as well as toiletries and cosmetics than any other group. They buy 47% more fashion than white students every month. 2. Indian students spend more on entertainment, gifts, snacking and eating out than any other group. They buy 68% more on Lotto tickets than black students. They also purchase more Bling and Jewelry than Black, Coloured and White students combined 3. Coloured students spent the most on fashion than any other group 4. White students buy more petrol and alcohol than Black, Coloured and Indian students combined. They spend 6X more on cigarettes than black students
5. Students who RENT have more disposable income than students living at home
Home (37%) Campus Res (24%) Renting (29%) R2502 pm R2008 pm R4275 pm Food, snacks Food, snacks Rent and eating out and eating out R498 R563 R1185 Food, Clothing & Clothing & snacks and Footwear Footwear eating out R338 R319 R962 Clothing & Entertain Rent Footwear R238 R275 R303 Toiletries & Entertain Transport Cosmetics R173 R148 R241 Toiletries & Airtime Entertain Cosmetics R162 R112 R201 Airtime Alcohol Airtime R155 R161 R111 Toiletries Alcohol & Alcohol Cosmetics R148 R155 R101
6. Students are serious convenience junkies
Student Marketing: Student spending behaviour - South Africa 2010
7. The Highest Value student purchase is
72% of High Value Purchases last year included clothing, shoes & accessories
High Value Purchases cont. in the last year 26% 22% 18% 12%
8. Students save more than the average South African Household Source: National Treasury
Half of students do manage to SAVE
9. Students are a cash orientated community
23% 36% 42% 9.5% 15% of students 2% have a credit card
Woolworths YDE 6% 6% Sportscene 7% Edgars Jet 30% 7% Identity 9% Truworths Markham 12% 23%
64% of Students Settle their own store account 34% get help from parents and family
10. Friends recommendations are not the biggest INFLUENCER
Influencers 23% 18% 18% 12%
11. More Students would shop online if they had the resources
Shopping online A Quarter of all students have ever bought something online. 16% Of those students that have not yet shopped online, 84% would be willing to shop online if they had the resources 14% 11% 10% 9%
12. Mobile payment currencies have some way to go in building students trust
Mobile currencies
13. Discounts= Loyalty
What students want from you Discounts 48% 10% Lower prices Rewards/ 9% vouchers/loyalty cards/prizes 5.3% Freebies 4.9% Improved quality Lower interest 4.7% rates
Students relationship to money A psychographic perspective
14. Money is a low ranking Motivator
Does Money Motivate Students ? 43% 30% 14% 9%
15. Students would spend their first pay cheque on
I will use my first paycheque to 25% 45% 9%
If I won 檎100,000
15 things you didnt know about Student Spending Behaviour 1. There is no such thing as an AVERAGE STUDENT 2. Students are SPENDING more than you think 3. Guys are SPENDING 15% more than Girls 4. Students from separate ethnic backgrounds spend very differently 5. Students who RENT have more disposable income than students living at home 6. Students are serious convenience junkies 7. The Highest Value student purchase is clothing, shoes and accessories 8. Students save more than the average South African Household 9. Students are a cash orientated community 10. Friends recommendations are not the biggest INFLUENCER 11. More Students would shop online if they had the resources 12. Mobile payment currencies have some way to go in building students trust 13. Discounts = Loyalty 14. Money is a low ranking Motivator 15. Students would rather pay off debt than splurge their first pay cheque.
Research www.studentmarketing.co.za Blog www.crammed.co.za Find us @ Student Village Marc Kornberger marc@studentvillage.co.za Ronen Aires ronen@studentvillage.co.za UNISA, Dept of Marketing and Retail Management Mike Cant - cantmc@unisa.ac.za Neels Bothma - bothmch@unisa.ac.za

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Student Marketing: Student spending behaviour - South Africa 2010

  • 1. 15 things you didnt know about Student Spending Behaviour Research Findings April 2010 Executive Research Team: Marc Kornberger (Student Village) Ronen Aires (Student Village) Mike Cant (UNISA) Neels Bothma (UNISA)
  • 2. Question Areas Student Spend Money sources Spending & saving Categories of spend Credit Influencers Online shopping Mobile payment currencies What brands should know
  • 3. UNISA is one of the largest distance education institutions in the world with over 280 000 students and is classified as one of ten mega-universities in the world by UNESCO The Department of Marketing and Retail Management within the College of Economic and Management Sciences recognises the importance of the student and youth markets to the future well-being of the country The partnership with Student Village brings together the academic and research resources and expertise of UNISA with the leading role that Student Village plays in the student community in South Africa The Department of Marketing and Retail Management is in the process of establishing a centre of excellence which focuses on the student and youth markets. Additional research will be conducted on an ongoing basis in order to explore the needs and roles of young women in SA society as well as to establish the entrepreneurial capacity of our youth in general These research projects will be repeated in the future in order to gain deeper insight into these topics and to see how they are changing from year to year (longitudinal research)
  • 4. About the Research Research conducted, Feb/March 2010 660 respondents across SA tertiary institutions 18-24 age group Males and Female 80% research conducted in-the- field, 20% online Demographic representative of SA population
  • 5. 15 Things You Didn't Know About Student Spending
  • 6. 1. There is no such thing as an AVERAGE STUDENT
  • 7. Male >Female Average age 18-23 76% Black 10% Indian 9% White 4.5% Coloured 35% First Year of Study 27% Second Year 20% Third Year 37% Live with Family 29% Renting 24% at Campus Res
  • 8. 2. Students are SPENDING more than you think
  • 9. R2 968 p.m OR R35 616 p.a
  • 11. Spending in SA Students 850,000 Student Individual R 28.5 Avg Spend per year: Billion p.a R35,616 R 1.5 SA Individual Trillion p.a Avg Spend per year: SA R32,340 population 47 Mill R 28,500,000,000 R 1,500,000,000,000 Ref: Bureau of Market Research
  • 12. 87% from their parents 26% Part-time or full-time work 11% bursaries
  • 14. . Where the Money Goes p.m Food, groceries & eating out R652 Rent Clothing & R501 Footwear Entertain Toiletries & R320 R199 Alcohol Cosmetics R197 R153 Airtime R152
  • 15. 3. Guys are SPENDING 15% more than Girls
  • 16. Food and Groceries 20% Alcoholic beverages 121% Telephone Costs 15% Petrol 150% Gifts for friends 70% Toiletries & Cosmetics 45% Contraception 238%
  • 17. 4. Students from separate ethnic backgrounds spend very differently
  • 18. 1. Black students spend more on food & groceries, as well as toiletries and cosmetics than any other group. They buy 47% more fashion than white students every month. 2. Indian students spend more on entertainment, gifts, snacking and eating out than any other group. They buy 68% more on Lotto tickets than black students. They also purchase more Bling and Jewelry than Black, Coloured and White students combined 3. Coloured students spent the most on fashion than any other group 4. White students buy more petrol and alcohol than Black, Coloured and Indian students combined. They spend 6X more on cigarettes than black students
  • 19. 5. Students who RENT have more disposable income than students living at home
  • 20. Home (37%) Campus Res (24%) Renting (29%) R2502 pm R2008 pm R4275 pm Food, snacks Food, snacks Rent and eating out and eating out R498 R563 R1185 Food, Clothing & Clothing & snacks and Footwear Footwear eating out R338 R319 R962 Clothing & Entertain Rent Footwear R238 R275 R303 Toiletries & Entertain Transport Cosmetics R173 R148 R241 Toiletries & Airtime Entertain Cosmetics R162 R112 R201 Airtime Alcohol Airtime R155 R161 R111 Toiletries Alcohol & Alcohol Cosmetics R148 R155 R101
  • 21. 6. Students are serious convenience junkies
  • 24. 72% of High Value Purchases last year included clothing, shoes & accessories
  • 25. High Value Purchases cont. in the last year 26% 22% 18% 12%
  • 26. 8. Students save more than the average South African Household Source: National Treasury
  • 27. Half of students do manage to SAVE
  • 28. 9. Students are a cash orientated community
  • 29. 23% 36% 42% 9.5% 15% of students 2% have a credit card
  • 30. Woolworths YDE 6% 6% Sportscene 7% Edgars Jet 30% 7% Identity 9% Truworths Markham 12% 23%
  • 31. 64% of Students Settle their own store account 34% get help from parents and family
  • 32. 10. Friends recommendations are not the biggest INFLUENCER
  • 33. Influencers 23% 18% 18% 12%
  • 34. 11. More Students would shop online if they had the resources
  • 35. Shopping online A Quarter of all students have ever bought something online. 16% Of those students that have not yet shopped online, 84% would be willing to shop online if they had the resources 14% 11% 10% 9%
  • 36. 12. Mobile payment currencies have some way to go in building students trust
  • 39. What students want from you Discounts 48% 10% Lower prices Rewards/ 9% vouchers/loyalty cards/prizes 5.3% Freebies 4.9% Improved quality Lower interest 4.7% rates
  • 40. Students relationship to money A psychographic perspective
  • 41. 14. Money is a low ranking Motivator
  • 42. Does Money Motivate Students ? 43% 30% 14% 9%
  • 43. 15. Students would spend their first pay cheque on
  • 44. I will use my first paycheque to 25% 45% 9%
  • 45. If I won 檎100,000
  • 46. 15 things you didnt know about Student Spending Behaviour 1. There is no such thing as an AVERAGE STUDENT 2. Students are SPENDING more than you think 3. Guys are SPENDING 15% more than Girls 4. Students from separate ethnic backgrounds spend very differently 5. Students who RENT have more disposable income than students living at home 6. Students are serious convenience junkies 7. The Highest Value student purchase is clothing, shoes and accessories 8. Students save more than the average South African Household 9. Students are a cash orientated community 10. Friends recommendations are not the biggest INFLUENCER 11. More Students would shop online if they had the resources 12. Mobile payment currencies have some way to go in building students trust 13. Discounts = Loyalty 14. Money is a low ranking Motivator 15. Students would rather pay off debt than splurge their first pay cheque.
  • 47. Research www.studentmarketing.co.za Blog www.crammed.co.za Find us @ Student Village Marc Kornberger marc@studentvillage.co.za Ronen Aires ronen@studentvillage.co.za UNISA, Dept of Marketing and Retail Management Mike Cant - cantmc@unisa.ac.za Neels Bothma - bothmch@unisa.ac.za