Brief

South African retailers risk costly overload of data, warns Field IQ

Field IQ’s general manager cautions that expanding surveys without clear goals can create expensive, low‑impact research.

By Felo News Desk · Published

South African retail brands are gathering unprecedented amounts of information, yet Field IQ’s general manager says more data does not automatically translate into better decisions.

What happened

In 2023 the country’s big‑data market was valued at $5.13 billion, and industry forecasts project growth to $9.27 billion by 2028. Retailers, facing frustrations such as under‑performing promotions, competitor shelf‑presence, or stock‑outs, often commission broad surveys that cover product availability, pricing, share‑of‑shelf, point‑of‑sale compliance, staff knowledge, shopper demographics and promotional visibility.

What the reports add

Carmen Brown, general manager of Field IQ, explains that many research projects are launched before a clear commercial question is defined. The result can be “a clean and complete dataset that answers 40 questions nobody will act on, and gives a thin answer to the two that would really matter.” She notes that adding ten extra questions to an existing questionnaire may seem inexpensive, but the hidden costs quickly accumulate through longer in‑store audits, respondent fatigue, higher surveyor workload and increased analysis burden.

What was said

Brown told bizcommunity.com, “What you end up with is a clean and complete dataset that answers 40 questions nobody will act on, and gives a thin answer to the two that would really matter. The process can be lengthy and costly and instead of solving a commercial problem, the research creates several more, and a brand or retailer ends up with an abundance of information without a clear direction.”

How it came about

The surge in data collection follows rapid growth in South Africa’s big‑data market, driven by retailers seeking competitive advantage. However, Brown’s comments echo earlier Felo News coverage on the pitfalls of data‑driven strategies, such as the AI‑related data‑harvesting projects highlighted in our September 16 article AI’s $1 Trillion Gamble and OpenAI’s Biotech Data Plan. Both pieces underline that without a focused commercial purpose, large‑scale data initiatives risk becoming costly exercises with limited impact.

Key facts

  • South Africa's big‑data market was valued at $5.13 bn in 2023. (bizcommunity.com)
  • The market is projected to reach $9.27 bn by 2028. (bizcommunity.com)
  • Carmen Brown says many retail surveys answer many questions no one will act on. (bizcommunity.com)
  • Adding ten extra questions to a survey can increase costs through longer audits and analysis. (bizcommunity.com)
  • Retailers often commission broad surveys covering product availability, pricing, shelf share, compliance, staff knowledge, demographics and promotional visibility. (bizcommunity.com)

Sources

  • [1] bizcommunity.com — originally reported as “More data does not mean better data - Field IQ”

Earlier coverage

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