NIQ Consumer Tech Trends: The consumer’s hunt for value reshapes the South African market

The value of the Middle East & Africa market is expected to rise around 2% to $68bn. Building on value growth of just 1.2% and unit growth of 3.5% for the first quarter, the South African T&D sector is expected to be shaped by volume-driven purchases and value-conscious buying for the rest of 2025.

Zak Haeri, managing director for NIQ in South Africa

“Two dynamics are driving price pressures in the South African T&D market in 2025. On the one hand, disruptive Chinese brands are rapidly moving into the country with attractive products spanning entry level, mid-range and premium price points,” says Zak Haeri, managing director for South Africa at NIQ.

“On the other, consumer behaviour is shifting as South Africans continue to adopt a purpose-driven approach to spending that prioritises value. ‘Value’ includes durability, quality, and convenience, as well as personalisation, rich features, and affordability. Consumers need to be convinced of value for money before they upgrade or replace products.”

Top 2025 Tech Trends in South Africa

Consumers need compelling reasons to upgrade

Many South African T&D segments are saturated, with consumers holding on to their televisions, computers, smartphones and appliances for longer. For consumers to justify replacing their existing products, they must be convinced of the enhanced performance and experience they’ll get in return for their money. Brands need smart strategies to capitalise on the moment when a consumer is ready to upgrade or replace.

Competition from Chinese brands heats up

Chinese brands have scored impressive wins in the South African television and smartphone markets over the past few years, driving fierce price competition. They have captured market share by offering better specs and more feature-rich configurations at lower prices. The success of Chinese brands in TVs and smartphones is creating a brand halo effect that is spreading to categories, such as home appliances. This trend may accelerate as Chinese brands seek new markets for excess inventory due to tariff-related sales declines in the US.

Promos and specials still move the needle

In a price-sensitive market, major promotional events and opportunities matter. On a global level, a third of tech sales in 2024 occurred during seven key promotions, up from 29% in 2021. NIQ expect shoppers in 2025 to plan around seasonal deals more than ever. T&D sales in South Africa will remain dominated by a few events on the annual retail calendar, including Back to School, Winter Sales, Christmas, and, especially, Black Friday.

Smartphones: Prepaid gains, postpaid pains

The smartphone market is undergoing a structural shift in South Africa. The prepaid segment is growing, driven by value offerings and operator support. Postpaid is declining, especially in the premium segment, with inconsistent performance outside flagship launches. Consumers keeping their phones for longer may be one reason for the decline in postpaid contracts. Emerging players with competitive pricing and innovation are reshaping consumer preferences.

Smartwatches: Sales shrink but entry-level grows

Unlike the global wearables market, South Africa’s smartwatch market is contracting, particularly in the R8,000–R12,000 mid-tier. Entry-level models are gaining traction, pulling demand from higher tiers. Promotions are driving short-term gains but not long-term stability.

Panel TVs: Contraction and innovation

The value of the panel television market is shrinking due to soft growth for QLED products and larger screen sizes. Competition from new brands, primarily Chinese companies, is heating up. Opportunities remain in select screen sizes (50–60") despite the overall contraction of the market.

Gaming monitors: High growth, high expectations

Gaming monitors are thriving, with the <27" segment contributing 80% of sales value in the first quarter. Consumers are trading up, especially around the R3,000 average sale price. Monitors are increasingly used as TV replacements, supported by multi-streaming platforms. Health features and ecosystem integration are driving long-term demand.

Cooling market momentum driven by mass retail and format shifts

The cooling category is experiencing strong momentum in South Africa, fuelled by mass market demand and aggressive pricing strategies. Two-door bottom freezers are leading in volume, while multi-door and French door formats are driving revenue.

Washing machines: Mid-tier surge

South Africa’s washing machine market is seeing rapid growth in the R6,000–R9,000 mid-tier sector. Front-loaders dominate in value, while top-loaders lead in volume. Brands in the middle are being squeezed at opposite ends by value-driven and premium competitors.

“Brands selling into South Africa must answer the dual challenge of a cautious, price-sensitive consumer profile and a congested retailer landscape. To grow this year and beyond, manufacturers and retailers must lead with value and innovation that resonates with today’s purpose-driven consumers,” says Haeri.

“True brand differentiation, with a tailored product range that meets the varying sweet spots for pricing and functionality among different consumer profiles, is core to growth. In addition, manufacturers and retailers must stay informed on trends developing across other markets, since South African consumers are closing the gap in adopting global trends.”

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