Synopsis
Provides in-depth analysis of the latest trends in online consumer shopping, covering of the factors driving online shopping, consumer insights, market dynamics (covering 25 product categories), and reviews of latest best practice in online retail site design.
Based on the latest data, the report not only provides details of the size and growth of this increasingly important channel, it also provides essential context on the penetration of online sales by product groups, how growth has developed over time, and key factors that will drive this market in the future.
Scope
Understand the consumer behaviour and online trends in South Africa.
Understand which products will be the major winners and losers in the coming years.
Learn from best practice approaches outlined in the case studies of leading online retailers.
Improve market and strategic planning using highly granular, forward-looking market data. Detailed category coverage is provided, covering 25 products, across eight product groups that include: Apparel, Accessories, Luggage and Leather Goods, Book, News and Stationery, Electricals and Electronics, Food and Grocery, Furniture and Floor Coverings, Home and Garden Products, Music, Video and Entertainment Software, and Sports and Leisure Equipment.
Assess the impact of the economic recession and its recovery on market growth.
Summary
Why was the report written?
“Consumer Attitudes and Online Retail Development in South Africa, 2013” is the result of Canadean’s extensive market research covering the online retail industry in South Africa. It provides the magnitude, growth, share, and dynamics of the online retail market in South Africa. It is an essential tool for companies active across South Africa’s online retail value chain and for new companies considering entry into South Africa’s online retail market. It provides data for historic and forecast online retail sales, and also includes the business environment and country risk related to South Africa’s online retail environment. By examining best practice from leading national large-scale online retailers (but specifically excluding the likes of Amazon, whose sites are well-known and vary little by country), as well as reviewing innovative approaches from smaller retailers, the report provides insights and ideas about how best to approach growing online sales for your business.
What is the current market landscape and what is changing?
Online retailers was the fastest-growing channel in South Africa. In 2012, the channel contributed 0.4% towards total South African retail sales, and is expected to continue growing at a CAGR of 21.74% during the forecast period. In 2017, Canadean forecasts the channel to increase its contribution to 0.8%.
What are the key drivers behind recent market changes?
Multiple factors are driving this growth, including the increase of the internet population, the emerging middle class population, the innovative steps taken by South African retailers to attract and retain customers, as well as an improved broadband infrastructure across the country, and the growing numbers of mobile internet users.
Reasons To Buy
Low broadband speeds and consumer distrust over online payments have been impacting the growth of online retailing in South Africa.
1 Introduction
1.1 What is this Report About?
2 Market at a glance
3 Consumer Insight: Online Shopping Attitudes and Behaviors
3.1 Overview of South Africa Online Shopping Environment
3.1.1 Increasing Internet Penetration will fuel online retailing
3.1.2 Growing Broadband service adoption will improve online shopping experience
3.2 Consumer Attitudes and Behaviours
3.2.1 M-Commerce is gaining ground in South Africa
3.2.2 Online retailers are offering freebies to influence consumer buying decisions
3.2.3 Weak Logistical Infrastructure remains a challenge for online retailing in South Africa
3.2.4 Slow internet speeds and consumer distrust towards online payments act as a roadblock to growth in online retailing
4 Online Channel Dynamics
4.1 The Online Channel’s Share of Total Retail Sales
4.1.1 South Africa online vs. offline channel forecasts
4.1.2 Online penetration: global and regional comparisons
4.2 Channel Dynamics
4.2.1 South Africa retail channel dynamics – future performance
4.2.2 Channel group share development
4.2.3 Individual channel performance
4.3 Category Dynamics
4.3.1 Online vs. offline retail sales comparison by category group, 2012
4.3.2 Online retail market dynamics by category
4.3.3 Online retail sales share by category group
4.3.4 Online retail sales growth by individual category
4.3.5 Food and grocery categories: market size and forecasts
4.3.6 Electrical and electronics categories: market size and forecasts
4.3.7 Music, video, and entertainment software categories: market size and forecasts
4.3.8 Apparel, accessories, luggage and leather goods categories: size and forecasts
4.3.9 Books, news and stationery categories: market size and forecasts
4.3.10 Sports and leisure equipment categories: market size and forecasts
4.3.11 Furniture and floor coverings categories: market size and forecasts
4.3.12 Home and garden categories: market size and forecasts
5 Case Studies: Leading Online Retailers in South Africa
5.1 Retailer 1: Woolworths Holdings Limited
5.1.1 Business description
5.1.2 Site experience
5.2 Retailer 2: Yuppiechef
5.2.1 Business description
5.2.2 Site experience
5.3 Other Innovative Retailers in South Africa
5.3.1 Kurt Geiger lure customers with its Digital Suitcase
5.3.2 Getwine.co.za enables customers to personalize labels and delivers wine at their doorsteps.
6 Appendix
6.1 Definitions
6.2 Summary Methodology
6.2.1 Overview
6.2.2 The triangulated market sizing method
6.2.3 Industry surveys in the creation of retail market data
6.2.4 Quality control and standardized processes
6.3 About Canadean
6.4 Disclaimer
List of Tables
Table 1: Online Retail Sales in South Africa
Table 2: South Africa Online vs. Offline Retail Sales and Forecast (ZAR bn), 2007–2017
Table 3: South Africa Online vs. Offline Retail Sales and Forecast (USD bn),2007–2017
Table 4: South Africa Online vs. Offline Retail Sales and Forecast (% Share), 2007–2017
Table 5: South Africa Online Sales vs. Global Average
Table 6: South Africa Online Sales vs. Middle East and Africa
Table 7: South Africa Overall Retail Segmentation (ZAR bn) by Channel Group, 2007–2017
Table 8: South Africa Channel Retail Sales and Forecast (ZAR bn) by Channel Group, 2007–2017
Table 9: South Africa Channel Retail Sales and Forecast (USD bn) by Channel Group, 2007–2017
Table 10: South Africa Channel Retail Sales and Forecast (% Share) by Channel Group, 2007–2017
Table 11: South Africa Channel Retail Sales and Forecast (ZAR bn) by Channel, 2007–2017
Table 12: South Africa Channel Retail Sales and Forecast (USD bn) by Channel, 2007–2017
Table 13: South Africa Retail Sales Split (ZAR bn), Online vs. Offline, 2012
Table 14: South Africa Retail Sales Split (USD mn), Online vs. Offline, 2012
Table 15: South Africa Online Retailers Market Dynamics by Category Group, 2007–2017
Table 16: South Africa Online Retail Sales and Forecast (ZAR bn) by Category Group, 2007–2017
Table 17: South Africa Online Retail Sales and Forecast (USD mn) by Category Group, 2007–2017
Table 18: South Africa Total and Online Retail Sales in Food and Grocery Categories (ZAR bn), 2007–2017
Table 19: South Africa Total and Online Retail Sales in Food and Grocery Categories (USD mn), 2007–2017
Table 20: South Africa Total and Online Retail Sales in Electrical and Electronics Categories (ZAR bn), 2007–2017
Table 21: South Africa Total and Online Retail Sales in Electrical and Electronics Categories (USD mn), 2007–2017
Table 22: South Africa Total and Online Retail Sales in Music, Video and Entertainment Categories (ZAR bn), 2007–2017
Table 23: South Africa Total and Online Retail Sales in Music, Video and Entertainment Categories (USD mn), 2007–2017
Table 24: South Africa Total and Online Retail Sales in Apparel, Accessories, Luggage and Leather Categories (ZAR bn), 2007–2017
Table 25: South Africa Total and Online Retail Sales in Apparel, Accessories, Luggage and Leather Categories (USD mn), 2007–2017
Table 26: South Africa Total and Online Retail Sales in Books, News and Stationery Categories (ZAR bn), 2007–2017
Table 27: South Africa Total and Online Retail Sales in Books, News and Stationery Categories (USD mn), 2007–2017
Table 28: South Africa Total and Online Retail Sales in Sports and Leisure Equipment Categories (ZAR bn), 2007–2017
Table 29: South Africa Total and Online Retail Sales in Sports and Leisure Equipment Categories (USD mn), 2007–2017
Table 30: South Africa Total and Online Retail Sales in Furniture and Floor Coverings Categories (ZAR bn), 2007–2017
Table 31: South Africa Total and Online Retail Sales in Furniture and Floor Coverings Categories (USD mn), 2007–2017
Table 32: South Africa Total and Online Retail Sales in Home and Garden Products Categories (ZAR bn), 2007–2017
Table 33: South Africa Total and Online Retail Sales in Home and Garden Products Categories (USD mn), 2007–2017
Table 34: South Africa, Exchange Rate ZAR–USD (Annual Average), 2007–2012
Table 35: South Africa, Exchange Rate ZAR–USD (Annual Average), 2013–2017 Forecasts
Table 36: Canadean Retail Channel Definitions
Table 37: Canadean Retail Category Definitions
Table 38: Canadean Retail Country Coverage
List Of Figures
Figure 1: Online Retail Sales in South Africa
Figure 2: Total Internet Users and Penetration, 2007–2012
Figure 3: Total Fixed Broadband Internet Users and Penetration 2007-2012
Figure 4: South African Mobile Commerce market insights
Figure 5: Improvement in Logistical Infrastructure: a Good Sign for Online Retail Industry
Figure 6: South Africa Online and Offline Retail Sales and Forecast (USD bn), 2007–2017
Figure 7: South Africa Online Sales vs. Global Average (% of Total Retail)
Figure 8: South Africa Online Sales vs. Middle East and Africa Countries Average (% of Total Retail)
Figure 9: South Africa Overall Retail Market Dynamics by Channel Group, 2007–2017
Figure 10: South Africa Retail Sales and Forecast (ZAR bn) by Channel Group, 2007–2017
Figure 11: South Africa Retail Sales, Online vs. Offline, 2012
Figure 12: South Africa Online Retailers Market Dynamics by Category Group, 2007–2017
Figure 13: South Africa Online Retail Sales and Forecast (USD mn) by Category Group, 2007–2017
Figure 14: Woolworths – Homepage
Figure 15: Woolworths – Product View
Figure 16: Yuppiechef – Homepage
Figure 17: Yuppiechef – Product List Overview
Figure 18: Yuppiechef – Search Feature
Figure 19: Yuppiechef – Product Zoom and Product Description
Figure 20: Yuppiechef – Product Video Feature
Figure 21: Kurt Geiger “ADD TO VIP SUITCASE” Page View
Figure 22: Getwine.co.za – Personalized Label Page View
Figure 23: The Triangulated Market Sizing Methodology
