Branding as a Strategic Constraint: Enhancing Identity and Visibility in South Africa’s Informal Micro-Textile Sector

Machela, Tsepo and Mugova, Shame (2026) Branding as a Strategic Constraint: Enhancing Identity and Visibility in South Africa’s Informal Micro-Textile Sector. The Retail and Marketing Review. ISSN 2708-3209

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Abstract

The purpose of this study was to investigate inadequate branding as both a strategic limitation and a growth constraint on the growth trajectories of informal micro-enterprises within the South African textile industry. Focusing on necessity-driven entrepreneurs, this study examines how brand identity and market visibility impact performance in resource-constrained environments. A mixed-methods approach was employed. Qualitative insights were gathered from 50 purposively sampled micro-entrepreneurs to explore their perceptions of branding. Quantitative data from 384 respondents were analysed using logistic regression to assess the relationship between brand adoption and firm-level performance indicators. The findings revealed that branding is widely perceived as a non-essential expenditure among necessity-driven entrepreneurs, often subordinated to operational priorities. This leads to limited brand development, reduced consumer recognition, and constrained growth. Firms employing even minimal strategic branding, such as signage or consistent product presentation, reported enhanced market visibility and higher customer retention. The findings underscore the duality of branding, both as a growth driver and as a cost-related trade-off in informal markets. The study provides actionable insights for policymakers, National Governmental Organisations (NGOs), and development agencies aiming to increase microenterprise competitiveness. Low-cost branding interventions, shared design resources, and grassroots brand training programs can mitigate perceived costs and improve brand salience. This paper contributes to the branding literature by extending brand strategy theory to informal and undercapitalised market contexts. It offers empirical evidence on how micro-entrepreneurs in the informal economy conceptualise branding and its strategic value—an area largely underexplored in emerging market branding research.

Item Type:	Article
Dates:	Date Event 1 March 2026 Accepted 26 March 2026 Published Online
Uncontrolled Keywords:	brand identity, informal entrepreneurship, microenterprises, necessity-driven entrepreneurs, market visibility, brand salience, strategic branding
Subjects:	CAH17 - business and management > CAH17-01 - business and management > CAH17-01-03 - marketing
Divisions:	Business School > Accountancy, Finance and Economics
Depositing User:	Gemma Tonks
Date Deposited:	29 Apr 2026 13:11
Last Modified:	29 Apr 2026 13:11
URI:	https://www.open-access.bcu.ac.uk/id/eprint/17012

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