Source: Why Zimbabwean firms must abandon old pricing playbooks – herald
Nelson Gahadza
Senior Business Reporter
COMPANIES in Zimbabwe have been urged to rethink their pricing models and adopt more innovative strategies to remain competitive in a price-sensitive market increasingly exposed to regional competition.
Mr Munyaradzi Hwengwere, chairman of the local consumption affirmative group Buy Zimbabwe, issued the warning during a press engagement following the release of a nationwide consumer survey.
He cautioned that local firms risk losing market share if they fail to align with the economic realities facing the majority of Zimbabwean consumers.
The survey, conducted by Buy Zimbabwe in partnership with Topline Research Solutions, covered the country’s 10 provinces. It sought to establish the key drivers influencing consumer preference for local goods and services.
Launched in 2011, Buy Zimbabwe is a private-sector-driven initiative aimed at promoting the production and consumption of local goods to drive economic growth, create jobs, and enhance the competitiveness of Zimbabwean brands.
Findings from the study paint a picture of a highly constrained consumer base.
Mr Hwengwere noted that the research showed the bulk of consumers earn approximately US$250 per month, making affordability the dominant factor in purchasing decisions.“One of the key issues emerging from the research is that Zimbabweans are operating on marginal incomes and are stretching every dollar,” he said.
“That is why 76 percent of consumers cite price as the primary driver when making purchasing decisions.”
He added that this trend should serve as a wake-up call for local manufacturers and retailers.
“As Buy Zimbabwe, we need to engage local companies and stress that they must be innovative regarding pricing. Otherwise, with increasing competition under the African Continental Free Trade Area (AfCFTA) and the likelihood of reduced barriers within the SADC region, local firms will struggle to compete,” Mr Hwengwere said.
The AfCFTA seeks to create a single continental market and is expected to intensify competition by allowing easier entry for goods from other African countries.
Beyond pricing, the survey highlighted persistent challenges regarding brand recognition.
Mr Hwengwere noted that only 21 percent of respondents could identify products using the Buy Zimbabwe insignia—a figure he described as concerning.
“We are happy that awareness is growing, but 21 percent is still too low. We need Zimbabweans to clearly identify local products so they can make informed choices,” he said.
The research also revealed a worrying trend regarding counterfeit goods; findings show that a significant number of consumers continue to purchase fake products, often knowingly.
“About 46 percent of respondents indicated they have bought counterfeit products, and 68 percent of those said they did so knowingly.
This shows that in an era where price dominates, consumers are not always paying attention to what is in the product,” said Mr Hwengwere.
He warned that the widespread acceptance of counterfeits has far-reaching consequences: “There are implications for jobs, incomes, and even health.
Consumers may say they do not care, but these choices have broader economic and social effects.”
Mr Patson Gasura, manager of Topline Research Solutions, confirmed that price and quality remain the most critical considerations.
“Seventy-six percent of consumers cited pricing as a key factor, while 36 percent pointed to quality,” he said.
The survey, which drew responses from 1 573 participants, will inform the upcoming Zimbrands Awards.
Mr Gasura noted that 37 categories will be recognised this year, including a new sports category introduced after football emerged as the most followed sport among respondents.
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