1. 15 things you didnt know about Student Spending Behaviour Research Findings April 2010 Executive Research Team: Marc Kornberger (Student Village) Ronen Aires (Student Village) Mike Cant (UNISA) Neels Bothma (UNISA)

2. Question Areas Student Spend Money sources Spending & saving Categories of spend Credit Influencers Online shopping Mobile payment currencies What brands should know

3. UNISA is one of the largest distance education institutions in the world with over 280 000 students and is classified as one of ten mega-universities in the world by UNESCO The Department of Marketing and Retail Management within the College of Economic and Management Sciences recognises the importance of the student and youth markets to the future well-being of the country The partnership with Student Village brings together the academic and research resources and expertise of UNISA with the leading role that Student Village plays in the student community in South Africa The Department of Marketing and Retail Management is in the process of establishing a centre of excellence which focuses on the student and youth markets. Additional research will be conducted on an ongoing basis in order to explore the needs and roles of young women in SA society as well as to establish the entrepreneurial capacity of our youth in general These research projects will be repeated in the future in order to gain deeper insight into these topics and to see how they are changing from year to year (longitudinal research)

4. About the Research Research conducted, Feb/March 2010 660 respondents across SA tertiary institutions 18-24 age group Males and Female 80% research conducted in-the- field, 20% online Demographic representative of SA population

5. 15 Things You Didn't Know About Student Spending

6. 1. There is no such thing as an AVERAGE STUDENT

7. Male >Female Average age 18-23 76% Black 10% Indian 9% White 4.5% Coloured 35% First Year of Study 27% Second Year 20% Third Year 37% Live with Family 29% Renting 24% at Campus Res

8. 2. Students are SPENDING more than you think

9. R2 968 p.m OR R35 616 p.a

10. Spending in SA Students 850,000 Student Individual R 28.5 Avg Spend per year: Billion p.a R35,616 R 1.5 SA Individual Trillion p.a Avg Spend per year: SA R32,340 population 47 Mill R 28,500,000,000 R 1,500,000,000,000 Ref: Bureau of Market Research

11. 87% from their parents 26% Part-time or full-time work 11% bursaries

12. Where the Money Goes

13. . Where the Money Goes p.m Food, groceries & eating out R652 Rent Clothing & R501 Footwear Entertain Toiletries & R320 R199 Alcohol Cosmetics R197 R153 Airtime R152

14. 3. Guys are SPENDING 15% more than Girls

15. Food and Groceries 20% Alcoholic beverages 121% Telephone Costs 15% Petrol 150% Gifts for friends 70% Toiletries & Cosmetics 45% Contraception 238%

16. 4. Students from separate ethnic backgrounds spend very differently

17. 1. Black students spend more on food & groceries, as well as toiletries and cosmetics than any other group. They buy 47% more fashion than white students every month. 2. Indian students spend more on entertainment, gifts, snacking and eating out than any other group. They buy 68% more on Lotto tickets than black students. They also purchase more Bling and Jewelry than Black, Coloured and White students combined 3. Coloured students spent the most on fashion than any other group 4. White students buy more petrol and alcohol than Black, Coloured and Indian students combined. They spend 6X more on cigarettes than black students

18. 5. Students who RENT have more disposable income than students living at home

19. Home (37%) Campus Res (24%) Renting (29%) R2502 pm R2008 pm R4275 pm Food, snacks Food, snacks Rent and eating out and eating out R498 R563 R1185 Food, Clothing & Clothing & snacks and Footwear Footwear eating out R338 R319 R962 Clothing & Entertain Rent Footwear R238 R275 R303 Toiletries & Entertain Transport Cosmetics R173 R148 R241 Toiletries & Airtime Entertain Cosmetics R162 R112 R201 Airtime Alcohol Airtime R155 R161 R111 Toiletries Alcohol & Alcohol Cosmetics R148 R155 R101

20. 6. Students are serious convenience junkies

21. 7. The Highest Value student purchase is

22. 72% of High Value Purchases last year included clothing, shoes & accessories

23. High Value Purchases cont. in the last year 26% 22% 18% 12%

24. 8. Students save more than the average South African Household Source: National Treasury

25. Half of students do manage to SAVE

26. 9. Students are a cash orientated community

27. 23% 36% 42% 9.5% 15% of students 2% have a credit card

28. Woolworths YDE 6% 6% Sportscene 7% Edgars Jet 30% 7% Identity 9% Truworths Markham 12% 23%

29. 64% of Students Settle their own store account 34% get help from parents and family

30. 10. Friends recommendations are not the biggest INFLUENCER

31. Influencers 23% 18% 18% 12%

32. 11. More Students would shop online if they had the resources

33. Shopping online A Quarter of all students have ever bought something online. 16% Of those students that have not yet shopped online, 84% would be willing to shop online if they had the resources 14% 11% 10% 9%

34. 12. Mobile payment currencies have some way to go in building students trust

35. Mobile currencies

36. 13. Discounts= Loyalty

37. What students want from you Discounts 48% 10% Lower prices Rewards/ 9% vouchers/loyalty cards/prizes 5.3% Freebies 4.9% Improved quality Lower interest 4.7% rates

38. Students relationship to money A psychographic perspective

39. 14. Money is a low ranking Motivator

40. Does Money Motivate Students ? 43% 30% 14% 9%

41. 15. Students would spend their first pay cheque on

42. I will use my first paycheque to 25% 45% 9%

43. If I won R100,000

44. 15 things you didnt know about Student Spending Behaviour 1. There is no such thing as an AVERAGE STUDENT 2. Students are SPENDING more than you think 3. Guys are SPENDING 15% more than Girls 4. Students from separate ethnic backgrounds spend very differently 5. Students who RENT have more disposable income than students living at home 6. Students are serious convenience junkies 7. The Highest Value student purchase is clothing, shoes and accessories 8. Students save more than the average South African Household 9. Students are a cash orientated community 10. Friends recommendations are not the biggest INFLUENCER 11. More Students would shop online if they had the resources 12. Mobile payment currencies have some way to go in building students trust 13. Discounts = Loyalty 14. Money is a low ranking Motivator 15. Students would rather pay off debt than splurge their first pay cheque.

45. Research www.studentmarketing.co.za Blog www.crammed.co.za Find us @ Student Village Marc Kornberger marc@studentvillage.co.za Ronen Aires ronen@studentvillage.co.za UNISA, Dept of Marketing and Retail Management Mike Cant - cantmc@unisa.ac.za Neels Bothma - bothmch@unisa.ac.za