Polarizing Economics
"Sell to the masses, dine with the classes?"
Job opportunities across occupations in the Africa. have "polarized", with growth concentrated in high-skill, high-wage and in low-skill, low-wage jobs – at the expense of "middle-skill" jobs.1 This polarization of Africa employment and wage growth presents an important theme for consumer manufacturers, retailers and marketers – the middle is being hollowed out.
"As a retailer or restaurant chain, if you're not at the really high level or the low level, that's a tough place to be. You don't want to be stuck in the middle."- John G. Maxwell, Global Leader Retail and Consumer Practice, PwC
This polarization drives consumer and retail success at both ends of the economic spectrum, with luxury goods makers, restaurants, and retailers catering to one end of the economic spectrum, and value-driven marketers and mass-market retailers serving consumers at the "extreme value" end. The number of luxury consumers worldwide has more than tripled over the past 20 years and is expected to reach 400 million consumers by 2030.2 At the "extreme value" end, Walmart reports that more than 245 million consumers visit their stores every week.
Polarization equally affects behavior on the social+mobile Internet, with low-income families focused on family budget management while high-income households will be more concerned about managing time and convenience with price playing a diminishing role.
Job opportunities across occupations in the Africa. have "polarized", with growth concentrated in high-skill, high-wage and in low-skill, low-wage jobs – at the expense of "middle-skill" jobs.1 This polarization of Africa employment and wage growth presents an important theme for consumer manufacturers, retailers and marketers – the middle is being hollowed out.
"As a retailer or restaurant chain, if you're not at the really high level or the low level, that's a tough place to be. You don't want to be stuck in the middle."- John G. Maxwell, Global Leader Retail and Consumer Practice, PwC
This polarization drives consumer and retail success at both ends of the economic spectrum, with luxury goods makers, restaurants, and retailers catering to one end of the economic spectrum, and value-driven marketers and mass-market retailers serving consumers at the "extreme value" end. The number of luxury consumers worldwide has more than tripled over the past 20 years and is expected to reach 400 million consumers by 2030.2 At the "extreme value" end, Walmart reports that more than 245 million consumers visit their stores every week.
Polarization equally affects behavior on the social+mobile Internet, with low-income families focused on family budget management while high-income households will be more concerned about managing time and convenience with price playing a diminishing role.