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Increasing Domestic Consumption of South African Wines: Exploring the market potential of the “Black Diamonds”

Author

Listed:
  • Ndanga, Leah Z.B.
  • Louw, Andre
  • van Rooyen, Johan

Abstract

Although South Africans are not predominantly wine drinkers, the industry is looking for ways to develop the local market to balance exports. The black middle class, increasingly referred to as the Black Diamonds are the most powerful marketing trend in the last 10 years as they have emerged as the strongest buying influence in the economy and making inroads in understanding this market presents a good opportunity. The data used in this paper was collected from an integration of a consumer behaviour survey; as well as personal interviews and focus group discussions. The paper asserts that the key factors influencing the South African consumers’ behaviour are age, gender, income, race and wine drinking history. The paper also asserts that not only are the black middle class are different from the white middle class but within the Black Diamonds different segments exist. The industry should particularly focus on marketing to the women and the “Start me up” age group in the group as there is limited consumer knowledge about wines, but a high willingness to experiment. The paper also suggests various new brand communication platforms that can be explored to reach this market as well as co-opetition between industry stakeholders.

Suggested Citation

  • Ndanga, Leah Z.B. & Louw, Andre & van Rooyen, Johan, 2008. "Increasing Domestic Consumption of South African Wines: Exploring the market potential of the “Black Diamonds”," Working Papers 108002, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
    • Handle: RePEc:ags:upaewp:108002
    DOI: 10.22004/ag.econ.108002
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    References listed on IDEAS

    as
    1. Johann Kirsten & Julian May & Sheryl Hendriks & Charles L. Machethe & Cecelia Punt & Mike Lyne, 2007. "South Africa," Chapters, in: Fabrizio Bresciani & Alberto Valdés (ed.), Beyond Food Production, chapter 8, Edward Elgar Publishing.
      • Liebenberg, Frikkie & Beintema, Nienke M. & Kirsten, Johann F., 2004. "South Africa," ASTI country briefs 14, International Food Policy Research Institute (IFPRI).
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