5M2T started out as a distribution model that helped commercial brands reach South Africa’s lucrative spaza shop and informal trade sector. After engaging with brands making use of its distribution model, 5M2T identified a need for more focused data and analysis on this sector. This led to the launch of their in-market audit platform that offers brands detailed data on informal trade, claiming to do so “within a fraction of the time and with far greater reach and penetration” than other market research offerings.
Capturing market idiosyncrasies
According to Stuart Smith, operations director at 5M2T, the problem that brands are facing is that the majority of data available is not accurate or specified to this unique retail model.
“We currently lack a platform that allows distribution strategies to be planned around accurate data on informal trade. Often the research that is performed and data collected is one-sided and does not take into account the unique idiosyncrasies of the informal trade sector. In spite of the fact that informal trade can fundamentally alter the fortunes of brands in South Africa, the investment into market research remains limited to anecdotal evidence and assumptions which couldn’t be further from the actual truth happening on the ground.”
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