Dissecting the LSM 7 – 10 market

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21 September 2012
Dissecting the LSM 7-10 market
Megan Chronis unpacks data from SAARF AMPS, RAMS and TAMS to paint a picture of
South Africa’s LSM 7-10 consumers.
They enjoy the best standards of living, earn the highest salaries, consume the most
media and are probably the most likely to appear as the target audience on many a
marketing plan. Meet the top third of South African society, the folk whose high standard
of living sets the standard…LSM 7-10.
Over the past decade, the LSM 7-10 supergroup has undergone substantial change. As a whole, this
segment of the population has grown by almost 60%, its ranks swelling from 6,394-million in AMPS
2001 to 12,206-million by the end of 2011 (AMPS Dec 2011, Jan-Dec 2011). Back in 2001, LSM 7-10
accounted for 22% of all adults aged 16+ (AMPS 2001). Now, 34.9% of adults (aged 15+) have a
standard of living enjoyed only on the higher rungs of the LSM ladder.
And with its change in size, so too has there been a change in its makeup. In particular, since AMPS
2001, LSM 7-10 has become younger and its racial profile has shifted markedly.
HOW OLD ARE THEY?
A greater proportion of young people now make up this supergroup. The 15-24 age bracket in LSM 710 has grown by 26% over the past decade (bearing in mind that AMPS 2001 measured those aged
16-24, while AMPS Dec 2011 measured 15-24). The 25-34 age group has declined by 11%, while LSM
7-10’s 35-49 age bracket is up four percent, with the 50+ bracket declining by five percent.
<GRAPH: LSM 7-10’s changing age profile>
Despite the growth of the 15-24 age bracket however, LSM 7-10 remains a supergroup skewed
towards the older set, with proportionately more people aged 35+ than is seen in the general
population. Intuitively, this stands to reason, considering that living standards generally rise as people
acquire possessions and have better access to services over the course of their lives.
<GRAPH: LSM 7-10’s age profile>
WHAT IS THEIR RACE?
The most marked demographic change to LSM 7-10 over the past decade has been in its racial
makeup. There are 149% more black people in the upper LSMs today than there were ten years ago,
while whites have declined by 45%, Indians by 20% and coloureds by three percent.
Today, there are 5,789-million blacks in this supergroup, 3,923-million whites, 1,681-million coloureds
and 812 000 Indians.
<GRAPH: LSM 7-10’s changing racial profile>
<GRAPH: LSM 7-10’s racial makeup>
WHERE DO THEY LIVE?
Proportionately, Gauteng and the Western Cape are the dominant LSM 7-10 provinces. Just under
39% of LSM 7-10 lives in Gauteng, where almost six out of ten people fall into this LSM supergroup.
In the Western Cape you’ll find a further 18.5% of the LSM 7-10 supergroup, which makes up 63.6%
of the population down south. While 16.7% of LSM 7-10s live in KwaZulu-Natal, they’re less
prevalent, accounting for only 28.6% of the province’s population.
In comparison to the provincial Big Three, Limpopo’s population consists of only 11.5% of LSM 7-10,
and the Eastern Cape’s of 20.2%.
<GRAPH: Where do LSM 7-10s live?>
WHAT IS THEIR WORK STATUS?
The majority of LSM 7-10s are employed, either full-time or part-time (46.5%). Just over half of all
South Africa’s full-time employees come from this LSM supergroup, as do 27.2% of all part-time
workers. Just over half of all those who are self-employed are in LSM 7-10.
<GRAPH: LSM 7-10’s employment status>
WHAT’S THEIR INCOME?
On top of their high standard of living, the vast majority of LSM 7-10s also come from households
with a higher average monthly income than your average South African household. A third of all LSM
7-10 households have a monthly income of over R20 000. Indeed, 96.9% of all households in this
income bracket fall into LSM 7-10, although wealth is concentrated towards the top end of this
supergroup. Only 9.4% of households in LSM 7 have an income of over R20 000 a month at their
disposal, compared to 22.1% of LSM 8, 43.8% of LSM 9 and 77% of LSM 10. (It is worth noting
however, that LSM 7 accounts for 32.9% of the entire LSM 7-10 supergroup, making up in numbers
what it might lack on the bottom line.)
A further 26.6% of households in this supergroup have a monthly household income of between
R11 000 and R19 999, with another 16.8% bringing in between R8 000 and R10 999 a month.
<GRAPH: LSM 7-10’s ave. monthly household income>
HOW EDUCATED ARE THEY?
LSM 7-10s are twice as likely to have technikon or post-matric qualifications than the nation as a
whole, and are two-and-a-half times more likely to have a university degree. Almost 90% of all
‘varsity graduates are in LSM 7-10, with 7.5% of this LSM supergroup holding degrees. When it
comes to technikon, 12.1% of LSM 7-10 has a technikon degree or diploma, with this group
accounting for 75.9% of all tech grads.
Tertiary education however, is more the preserve of the topmost LSM groups. For example, only
2.7% of LSM 7s have a university degree, compared to 17.3% of those in LSM 10.
WHO ARE THEY?

LIFESTAGES
The majority of LSM 7-10 falls into SAARF’s “At-Home Singles” lifestage group (24.2%), with “Young
Families” (19.3%) and “Mature Couples” (12.9%) the next two biggest lifestage segments.
<GRAPH: LSM 7-10’s lifestages>

ATTITUDES
The biggest attitudinal group in LSM 7-10 is “Rooted”, the dominant attitude type of 27.8% of the
upper LSMs. People from this attitudinal group are concerned about social issues such as crime
(taking a dim view of criminal activity and worrying about their personal safety), the environment,
education, employment, gender roles and poverty. They’re group-orientated, concerned about their
health, and value language, country, family and religion. In general, they’re older, and have the
highest level of employment amongst the SAARF Attitude groups (despite this however, they’re very
cautious about spending money).
The “Established” group (which is the top end – LSM 6-10 – of the “Distants” attitudinal group)
accounts for 20% of LSM 7-10. The Establisheds are marginalised from mainstream society, hold oldfashioned attitudes about gender, are materialistic and brand/status-conscious, and are keen
shoppers who often exhibit a high degree of financial indiscretion. They’re often lonely and so seek
out entertainment.
Finally, 18.7% of LSM 7-10s are classified as “Global Citizens”, who, unlike their Established
counterparts, are at the forefront of change. They’re pro gender equality, embrace technology and
innovation, and like to try new things. While status conscious, being original and different are also
key. They love sport and enjoy shopping and entertainment. Full-time employment is above average,
with most Global Citizens being fortunate enough to be in jobs that interest them and that are more
than just a way to pay the bills.
<GRAPH: LSM 7-10’s attitudinal groups>

LIFESTYLES
Three SAARF Lifestyle groups come up highest for LSM 7-10: 17.4% are “Good Living” (who enjoy
the finer things in life, are the best educated, high a incidence of full-time employment, and are
married or living together), 16.4% are “Avid Readers” (who keep a low profile, are mature/elderly,
metro dwellers, with reading a major feature of their lifestyle) and 14.9% are “Cell Sophisticates”
(who are younger, mainly metro, use cellphones extensively, and are well-educated).
<GRAPH: LSM 7-10’s lifestyles>
HOW DO I REACH THEM?
TELEVISION reaches 98.0% of LSM 7-10 every
week.
TOP 10 TV SHOWS FOR AUG
2012, LSM 7-10 adults
(15+)
(Source: SAARF TAMS)
Reach
1
“Generations”
14.2%
2
“7de Laan”
13.5%
3
“Panic Mechanic” (e.tv movie)
12.6%
4
“Noot vir Noot”
12.0%
5
The Afrikaans news on SABC 2
11.1%
6
“There’s a Zulu on my stoep”
10.6%
7
Caster Semenya’s London 2012
10.1%
Olympics race, SABC 2
8
“Zone 14”
9.8%
9
“Die Vierde Kabinet”
9.2%
10
“Pasella”
9.1%
RADIO reaches 94.5% of LSM 7-10 every week.
TOP 10 RADIO STATIONS
FOR LSM 7-10
(Source: RAMS March/Jul 2012) Reach
1
Metro FM
22.8%
2
5FM
11.1%
3
RSG
10.4%
4
Ukhozi FM
10.3%
5
94.7 Highveld Stereo
9.7%
6
Jacaranda FM
8.3%
7
Lesedi FM
7.6%
8
Kaya FM
7.4%
9
East Coast Radio
7.2%
10
99.2 YFM
6.2%
INTERNET: While in total only 17%
of South African adults go online
each week, 38.2% of LSM 7-10 surfs
the Net – 78.4% of the seven-day
internet audience falls into this LSM
supergroup. (AMPS Dec 2011)
MAGAZINES reach 72.2% of LSM 7-10.
magazine readers are in LSM 7-10.
TOP 10 MAGAZINES FOR
LSM 7-10
(Source: AMPS Dec 2011)
1
Dish/skottel
2
Huisgenoot
3
You
4
True Love
5
Drum
6
People
7
TVPlus
8
Move!
9
Car
10
Kickoff
Half of all
Reach
27%
14.2%
13.8%
10.0%
8.9%
8.8%
7.7%
7.6%
6.7%
6.5%
NEWSPAPERS reach 67.1% of LSM 7-10. Fortyeight percent of newspaper readers are in LSM 7-10.
TOP 10 NEWSPAPERS FOR
LSM 7-10
(Source: AMPS Dec 2011)
Reach
1
Sunday Times
20.8%
2
Daily Sun
15.1%
3
Rapport
9.7%
4
Sunday Sun
9.2%
5
Soccer Laduma
7.8%
6
City Press
7.0%
7
Sunday World
6.8%
8
Sowetan
5.7%
9
Son
5.3%
10
The Star
4.4%
OUT-OF-HOME advertising reaches
96.7% of the LSM 7-10 market in an
average week. (AMPS Dec 2011)
CINEMA: The total weekly cinema
reach for the SA population is 1.2%;
in LSM 7-10, reach is more than
twice that, at 2.8%. LSM 7-10
accounts for 83.1% of cinema’s
audience base. (AMPS Dec 2011)
ends
ADDITIONAL GRAPHS, FOR USE WITHIN THE FEATURE IF YOU’D LIKE
<GRAPH: LSM 7-10’s top 10 activities (and how total SA compares)>
<GRAPH: LSM 7-10’s top 10 brands (personally bought/eaten)>
<GRAPH: LSMs: The big picture>
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