Businesses can act as partners during times of inflation

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According to the 2023 Gartner Consumer Cost-of-Living and Price Sentiment Survey, 90% of consumers sought cheaper alternatives in at least one product category, while a third reported significant financial strain.

It’s a reminder of how deeply inflation affects everyday lives, making everything from food to tech purchases more challenging. In this environment, retailers have a unique opportunity to step up.

Companies that consider themselves to be ‘market leaders’ have a duty to protect consumers from the worst effects of inflation. The impact of rising prices on the tech retail sector have been clear to see, with many choosing to hold on to their smartphones before trading them in, or opting for repair services to keep their devices working longer.

But these are only temporary solutions and it is up to businesses to meet their customers half way.

The price of responsibility

The key to getting this balance right is for businesses to act as a partner to their customers, recognising and addressing their pain points. In a time of economic uncertainty, consumers are not just looking for the best product — they’re looking for trust, transparency, and brands that demonstrate genuine care.

Research by McKinsey on this topic shows that companies who approach pricing thoughtfully, even amid inflation, maintain stronger customer relationships, ultimately benefitting their long-term growth.

By providing more than just price stability —through offerings such as subscription models or instalment plans — companies can help consumers navigate these tough times without feeling exploited.

South Africa’s economic reality

According to Stats SA, retail trade sales, measured in real terms, decreased by 0.8% year-on-year. This decline is a clear indication that consumers are not spending as they used to, mainly due to rising costs across every sector.

For tech buyers, this could mean holding onto devices longer or avoiding upgrades altogether — decisions driven by the reality of shrinking disposable income.

The Covid-19 pandemic only exacerbated this situation. Global supply chain disruptions, combined with labour shortages and increased production costs, created the perfect storm for inflation.

Consumers were left paying more for basic goods while their incomes stagnated. In this context, it’s no surprise that many are delaying major purchases, such as smartphones, or downgrading their spending to manage household budgets more effectively.

Companies like iStore are aware of this and recognise that the impact of inflation extends beyond their business concerns to the very customers who have made the brand successful over the years.

That’s why they chose not to pass on the full brunt of these costs. Instead, they focused on creating solutions like Contract Price Freeze to offer relief and value at a time when it’s needed most.

This offering enables customers to upgrade their iPhones while keeping their contract prices unchanged, allowing them to access newer technology without taking on the additional burden of inflation-driven price increases. It’s a solution that directly addresses the economic realities of our time.

Navigating inflation with partnership

The question business leaders must ask themselves is: How much should consumers be expected to pay for something they didn’t cause? The answer is simple—they shouldn’t have to bear the full weight. Businesses need to recognise their role in protecting their customers during tough economic times.

McKinsey’s findings reinforce that companies should move beyond just pricing discussions to broader conversations about their customers' financial realities.

This is where the idea of partnerships come into play. The iStore Contract Price Freeze represents a sort of partnership between iStore and the South Africans who’ve been loyal to their brand.

If you own an iPhone 13 or newer, for example, you can upgrade without worrying about higher contract fees—allowing you to stay connected and up-to-date with the latest technology, without an additional financial burden.

At the core, iStore always prioritises the relationship with their customers and doing what is best for them. Their decision to keep contract prices steady for eligible upgrades is a reflection of that philosophy. Apple’s premium reseller aims to shield its customers from the relentless upward spiral of inflation and give them room to breathe.

Building for the future

Inflation has forced every industry to reconsider its relationship with consumers.

Consumers are looking for more than just the best price—they’re looking for brands that stand with them.

iStore has committed to playing their part in this journey, offering more value, transparency, and support during these challenging times. That’s what real leadership looks like in an inflationary world.