What is the health of local retail ecommerce and what contribution is it making to the South African economy? That’s the question that “Online Retail In SA 2018” will answer when this groundbreaking new report is launched at a Heavy Chef event on 31st October 2018, when World Wide Worx, Visa and Platinum Seed present the results of this historic study.
The study is endorsed by the E-Commerce Forum Africa, and includes an industry study of retailers, demographic data on consumers, and an overview of trends in global online retail and in payment technologies. World Wide Worx collaborated with pan-African research house Ask Afrika in the collection of demographic data.
“Online retail reached 1% of overall retail during 2016, the last time we conducted this survey,” says Arthur Goldstuck, Managing Director of World Wide Worx.
“At the time, retail was growing well, achieving a growth rate of above 20% a year. SA online shopping has grown consistently, at around this rate, since the turn of the century, initially off a very low base. By 2016 total online retail had reached just over R9-billion, in comparison to total retail which grew to just below R900-billion,” he says.
Goldstuck points out that since the last survey, some 50% of the online retailers surveyed had consolidated or had gone out of business. “It is a tough market, but a growing one. The recession, of course, will bring new challenges to online retailers.”
“By 2016 total online retail had reached just over R9-billion, in comparison to total retail which grew to just below R900-billion.”
Most recently, earlier in September 2018, Naspers merged Spree.co.za and Superbalist.com. The consolidation sees Media24 own 51% of the business, while the Takealot Group — the owners of Superbalist — will own 49% of the new, joint venture. Takealot will have management control of the new entity which will be branded Superbalist.com.
“We’ll see a lot more of this kind of consolidation and a concentration of talent around the bigger online retailers,” Goldstuck says. “However, early indications from our new research is that numerous specialist and online niche shops are emerging. We want to track that growth closely, so are calling on all online retailers to participate in our survey.”
Heavy Chef Foundation Chairman, Louis Janse van Rensburg, who is responsible for Research at Heavy Chef, said: “We’re incredibly excited to host Arthur and Brad on our stage. World Wide Worx, together with Platinum Seed and Visa have done incredible work in getting this report together so comprehensively.”
Online retailers had until Wednesday 03 October 2018 to fill out the survey questionnaire. All participants in the events will receive a free copy of the executive summary of the report.