By Rowan Philp

'In the more affluent areas the racial profiles are shifting quite radically'

Retail businesses in Johannesburg's upmarket suburbs no longer have to go looking for black spending power - it has come to them in a rush.

Figures released by the Newspaper Advertising Bureau reveal that the numbers of black consumers, following dramatic residential migrations, have surged in formerly white suburbs on the rim of Johannesburg and now represent the majority in the vast Midrand area.

In research that added results from recent door-to-door interviews to Census 2001 data, NAB found that black "purchasing decision-makers" (PDMs) had jumped from 29% of the Midrand market in 2000 to 52% in 2004.

In Fourways, black spending power is at 47%, in contrast with roughly 18% in Sandton.

The figures show black PDMs had also grown from 9% in 2000 to 27% in Johannesburg's southern suburbs, including Glen Vista and Bassonia, and from 2% to 21% in the traditionally Afrikaans suburb of Kempton Park.

Jacqui Maseko, referrals manager for Pam Golding in Gauteng, said the consumer figures matched her buying trends "exactly". She said the new residents brought new spending power as well as strong loyalty to certain brands.

" Black people are buying big-time in Midrand and the south. Midrand is taking about 80% of these buyers," she said.

"These buyers are big spenders. There is no doubt they will be looking for new household items such as dishwashers. These buyers are very brand-conscious, whereas whites don't really need the name."

Maseko also agreed with the findings of a NAB survey that the number of black spenders on the East Rand had declined since 2000.

"The East Rand is still seen as a bit stiff from a racial point of view," she said. "Midrand is much more attractive. Properties are still very reasonable and there is an established affluent black community."

John Bowles, NAB's joint managing director, said the Midrand area - including K yalami and Vorna Valley - featured well over 20 000 homes, with most in the Living Standard Measure 7 to 10 brackets.

" I believe Midrand will be the primary melting pot in the future South Africa," said Bowles.

Joelle Berry, marketing manager of The Boulders shopping centre in Midrand, said the "high value" weekday shopping had swung around to feature 70% black shoppers - and that the trend had been "great for business".

"The black middle class has made Midrand its own, and its changed the retailers' experience: suddenly most shoppers are very well informed about products, and they're exceptionally selective," said Berry.

"But when it comes to fashion, most black shoppers just don't look at the price - the brand is everything, and we love that.

"We've had to grow this market without losing the white market. We lost a few who had unfortunate perceptions of the change, but now all our shoppers are our kind of people."

Bowles said: "This survey makes it clear that marketers need to keep abreast with the residential shifts taking place in the market.

"We know that black spending power has surpassed that of whites, but now we can see that in the more affluent areas of Johannesburg, the racial profiles are beginning to shift quite radically."

Bowles said demographic trends were suburb-specific.

The Killarney/Rosebank area had seen a major surge in black PDMs, while the neighbouring Melville/Northcliff had seen no change.

"Overall, retailers have the same fundamentals in marketing their goods.

"But there is far less relevance to cultural issues today," said Bowles.

"But there may be different brand affiliations, and some store loyalty that new entrants will bring with them."