Online Reporter
Nelson Gahadza, [email protected]
COMPANIES in Zimbabwe have been urged to rethink their pricing models and adopt more innovative strategies if they are to remain competitive in a price-sensitive market increasingly exposed to regional competition.
Local consumption lobby group Buy Zimbabwe chairman Mr Munyaradzi Hwengwere, speaking during a press engagement following the release of a nationwide consumer survey, warned that local firms risk losing market share if they fail to align with the economic realities facing the majority of Zimbabwean consumers.
The survey, conducted by Buy Zimbabwe in partnership with Topline Research Solutions, covered all 10 provinces and sought to identify key drivers influencing consumer preference for local goods and services.
Buy Zimbabwe is a private sector-driven initiative launched in 2011 to promote the production and consumption of local goods and services to drive economic growth, create jobs and enhance the competitiveness of Zimbabwean brands.
Findings from the study paint a picture of a highly constrained consumer base, with most Zimbabweans operating on modest incomes.
Mr Hwengwere said the research showed that the bulk of consumers earn around US$250 per month, making affordability the dominant factor in purchasing decisions.
“One of the key issues emerging from the research is that Zimbabweans are operating on marginal incomes and are stretching every dollar,” he said. “That is why you find that 76 percent of consumers cite price as the primary driver when making purchasing decisions.”
He said this trend should serve as a wake-up call for local manufacturers and retailers.
“As Buy Zimbabwe, what we need to do is to begin to engage local companies and say you have to be innovative around pricing. Otherwise, with increasing competition under the African Continental Free Trade Area and the likelihood of reduced barriers within the Southern African Development Community, local firms will struggle to compete,” Mr Hwengwere said.
The African Continental Free Trade Area (AfCFTA), which seeks to create a single continental market, is expected to intensify competition by allowing easier entry of goods from other African countries, while ongoing regional integration within the Southern African Development Community (SADC) could further open Zimbabwe’s market.
Beyond pricing, the survey also highlighted persistent challenges around brand recognition and consumer awareness.
Mr Hwengwere said only 21 percent of respondents indicated they could identify products bearing the Buy Zimbabwe insignia, a development he described as concerning.
“We are happy that awareness is growing, but 21 percent is still too low. We need Zimbabweans to clearly identify local products so they can make informed choices,” he said.
The research also revealed a worrying trend regarding counterfeit goods, with findings showing that a significant number of consumers continue to purchase fake products, often knowingly.
“About 46 percent of respondents indicated that they have bought counterfeit products and 68 percent of those said they did so knowingly. This shows that in an era where price dominates, consumers are not always paying attention to what is in the product,” said Mr Hwengwere.
He warned that the widespread acceptance of counterfeit goods could have far-reaching consequences.
“There are implications for jobs, incomes and even health. Consumers may say they do not care, but these choices have broader economic and social effects,” he added.
Topline Research Solutions manager Mr Patson Gasura said the findings confirm that price and quality remain the most critical considerations for consumers.
“Seventy-six percent of consumers cited pricing as a key factor, while 36 percent pointed to quality,” he said.
He said the survey, which drew responses from 1 573 participants, will also inform the upcoming ZimBrands Awards.
Mr Gasura noted that a total of 37 categories will be recognised this year, with organisers introducing a sports category after football emerged as the most followed sport among respondents.
