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MARKET POTENTIAL RESULTS TO HELP FRANCHISE EXPANSION

Recent market research, conducted by the Bureau of Market Research (BMR Report 388) gives some interesting statistics on the market potential for South Africa by province, municipality and population group which franchisors might find helpful when planning their franchise expansion.  Some of the more interesting facts from the research include:

  • Gauteng accounts for about 35% of total household consumption expenditure in South Africa.
  • The 3 metropolitan areas of Ekurhuleni, Johannesburg and Tshwane jointly account for 31.8% (an expenditure of R441 billion in 2008) of the total figure in SA and approximately 90% of household consumption expenditure in Gauteng.
  • SA’s white population group, although only 10.8% of the total South African population in 2008, contributed 40.2% of household consumption expenditure.
  • In keeping with the changing socio-economic climate over the past fifteen years, the contribution of the White population group to total household consumption expenditure decreased from 48.1% in 1993 to 40.2% in 2008 while the contribution of the African population to total household consumption expenditure increased from 38.6% in 1993 to 47.1% in 2008.

The full 44-page report is available from the Bureau of Market Research.

 
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