AAWE, Economics Dept, New York University, 19 W 4th St, 6Fl., New York NY 10012aawe@wine-economics.org

AAWE Working Paper No. 41 – Business

 

Increasing domestic consumption of South African wines:
Identifying the key market segments of the “Black Diamonds” 

Leah Z.B. Ndanga, André Louw and Johan van Rooyen 

 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 study asserts that the key factors influencing the South African consumers’ behavior are age, gender, income, race and wine drinking history. The study 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 study also suggests various new brand communication platforms that can be explored to reach this market as well as co-opetition between industry stakeholders.

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