According to research report “Writing Instruments in South Africa”, writing instruments is a wide market which is comprised of consumer belongings of different groups. Highlighter, pen and marker have shown subsequent stability in its demand especially in educational sectors such as schools.
What are the growth prospects of writing instruments in South Africa?
Writing instruments is a mature category and has limited growth prospects because of advancement in technology. With the entry of Liberalization, Privatization and Globalization the market not only introduce premium products but also medium and low priced products which have marked the popularity especially in educational institutions. The future growth is hampered by the advancement in telecommunication equipment. There is a slow innovation in writing instruments because of resultant limited returns. The primary reason behind category value growth is rising unit price which is resulting from inflation.
What are the macroeconomic factors influencing growth in South Africa?
After country’s first democratic election 1994, the south Africa government has embarked on economic reforms, which lead the access to better job and other opportunities which subsequently resulted in increase in income, growth in volume of sales and taste and preferences as well. Which lead to increase in demand for writing instruments.
Increase in population of South Africa builds the need of improving the standard of living. And increase in population has led to increase in demand for writing instruments significantly in educational institutions like schools and colleges.
What are the future prospects and opportunities in South Africa?
South African consumers are expected to remain aspirational beyond the forecast period and such notions are expected to help retain market growth for luxury instruments which often carry lower value when contrasted with other items. The middle class is expected to grow in population in the country as the government continues to address the economic disparities that existed prior to the country’s independence in 1994. Lifestyle changes are expected to influence product offerings from manufacturers for personal instruments while luxury instruments is expected to remain as one of the biggest categories driving volume sales. Luxury timepieces are perceived as a status symbol in South Africa and brand choice is usually driven by the message the brand is deemed to send to the surroundings.
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Ankur Gupta, Head Marketing & Communications