Students Control 24 Billion Shilling Back To School Market!

A landmark research study on the economics of back to school shopping has unveiled the existence of a massive Kshs 24billion fast moving consumer goods economy. The first of a kind research study by youth research powerhouse Youth Dynamix Kenya has confirmed that nationally, Back To School shopping is worth close to Kshs 24 billion annually.

This economy, the study notes still has room for growth given that school administrators are blocking a further Kshs 5.7 billion worth of shopping per term featuring lifestyle products.
Interestingly, the back to school period covers less than one and a half weeks, features a population of approximately 1.23 million youth, which is 3.6% of Kenya’s total population, yet contributes staggering economic revenues.
The syndicated study dubbed the Youth Dynamix Back2School Shopping Trax, unveiled November 20th revealed that an average of KShs 8 Billion is spent each term on over 120 product categories by parents sending their children back to school. As expected, students in secondary and primary boarding schools spend an average of KShs 18.3 billion annually, while day scholars contribute KShs 5.7 billion annually to the back to school spend. Interestingly, students interviewed in the course of the study confirmed that a loaf of bread is the most ‘valued & expensive’ item on their shopping lists. For this item, a total of KShs 1.2 billion is used per term to purchase it!
As an emerging trend, students are also increasingly purchasing modern lifestyle products such as water purifier, toothpicks, wet wipes and cotton buds. The study confirmed that the combined worth of the three products stands at close to Kshs 4.8 million per term. For example, 1.5%, or 18,500 students will find it prudent to carry toothpicks to school!
While presenting the findings, Youth Dynamix Kenya Strategy and Research Manager Sylvester

Manyara further disclosed that aside from FMCG, players in the transport and banking sectors are also enjoying a slice of the pie.
Manyara who spoke during a breakfast meeting featuring local sales & brand managers and presided over by Nakumatt Holdings Operations Director Mr. Thiagarajan Ramamurthy, further disclosed that supermarkets are the dominant trade avenues for back to school shopping business enjoying more than 78% of the cake.
“Seventy eight percent of urban students shop for most of their products from supermarkets, while a further 51% will supplement with products from shops and 30% from kiosks,” Manyara disclosed.
And added: “for all students, a supermarket visit is a near must do activity even for students in rural areas given that although 58% of rural students will shop for most of their products in local shops, 57% will still find time to pick up some of the stuff from supermarkets on their way to school.”
While lauding the research study as a worthy information package, Nakumatt boss Ramamurthy challenged executives in the FMCG sector to keep up with the times by adding value to their product offering during such seasonal sales season such as back to school periods.
Marketers, he noted, must strive to raise up to the occasion by embracing flexible offers and packaging elements to attract such a key market.
“This study clearly shows that there’s a huge market comprising of students that has been previously ignored,” Ramamurthy noted. Specific to Nakumatt, Ramamurthy pledged to unveil enticing offers for back to school shopping with interested supplier to further add value to the shopping season. Other highlights in the study confirm that on a gender basis, females are the high spenders accounting for more than 56% of the overall high school students’ expenditure spending more than Kshs 13.4 billion. And while a loaf of bread is the most valuable product, a bar soap is the most ‘crucial’ item in the shopping basket, purchased by 78% of the students. tudents interviewed in the study confirmed that a bar Soap is the most multi-purpose product in the shopping basket, substituting close to 6 other products. “It is used for bathing, laundry, cleaning utensils and applied as a ‘lotion’, or a ‘jelly’ after taking a shower,” Manyara explained.

The high school market, Manyara pointed out has a population of approximately 1.23 million youth, which is 3.6% of Kenya’s total population.