Consumer Attitudes and Online Retail Dynamics in South Africa

Published: September 2012

Publisher: Canadean Ltd

Product ref: 147689

Pages: 68

Format: PDF

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Price: $ 1450.00

Report description

Product Synopsis
• provides an in-depth analysis of the latest trends in online consumer shopping, covering drivers of online shopping, consumer insights, market dynamics (covering 25 product categories), and reviews of the 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 contexts on the penetration of online sales by product groups, how growth has developed over time, and key drivers of this market in the future.

Introduction and Landscape
Why was the report written?
“Consumer Attitudes and Online Retail Development in South Africa” 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 the South African online retail market. It provides data for historic and forecast online retail sales, and also includes the business environment and country risk related to the South African 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 companies, 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?
Pure–play retailers dominate the South African online retail industry, accounting for more than half of the leading online retailers tracked by Canadean. In addition, South African online retailers offer a wide range of products such as apparel, footwear, food, drinks and grocery, consumer electronics, photographic equipment, household and kitchen appliances, homewares and cutlery, as well as gardening and flowers. Though multi–channel retailers are under–represented in the market, the fact that major large retailers such as Woolworths and Pick N Pay have online retail portals is a positive sign, which could encourage other physical retailers to adopt the platform during the forecast period.

What are the key drivers behind recent market changes?
Consumers have been reacting to the effects of the global recession, including the recovery period, on their discretionary spending, and retail markets have been no exception. While the country by country market changes have varied, nowhere has been left totally untouched. This report quantitatively examines the components of change in the market by looking at historic and future growth patterns including how changes in consumers’ behavior have affected the online retail sector for different product categories.

Key Features and Benefits
Understand the consumer behavior and online trends in South Africa.

Understand which products will be the major winners and losers in the coming years.

Learn from best practices approaches outline 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 economic recession and recovery on market growth.

Key Market Issues
The fixed broadband landscape in South Africa is characterized by low access, slow broadband speeds and high costs. In 2011, 1.9% or 1.0 million South Africans had access to fixed broadband services.

Key Highlights
Books, news and stationery was the fastest-growing product group with a CAGR of 30.79% during 2006–2011, followed by electrical and electronics with a CAGR of 30.34% during the same period.

Apparel, accessories, luggage and leather goods was the largest product group with total sales of ZAR 759.5 million or 30.3% of total retail sales in 2011. The second largest product group was electrical and electronics which accounted for 24.9% of total retail sales.





Table of contents

1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.2.1 This report provides 2011 actual sales; while forecasts are provided for 2012 – 2016
1.2.2 Changes to terms used in the Canadean taxonomy
1.3 Summary Methodology
1.3.1 Overview
1.3.2 The triangulated market sizing method
1.3.3 Industry surveys in the creation of retail market data
1.3.4 Quality control and standardized processes
2 Consumer Insight: Online Shopping Attitudes and Behaviours
2.1 Overview of the South Africa Online Shopping Environment
2.1.1 Online retail market under-developed due to low internet penetration and small user base
2.1.2 New submarine broadband cable landings to improve fixed broadband connections in South Africa
2.1.3 While historically low, mobile internet penetration forecast to grow at a rapid pace
2.2 Consumer Attitudes and Behavior
2.2.1 89% of South African online shoppers satisfied with their shopping experience
2.2.2 Government initiatives to promote online retail in the country proving successful
2.2.3 Digital products most popular category in the country due to their low-touch nature
2.2.4 Wide spread mobile penetration represents significant opportunity for retailers
2.2.5 Credit cards and debit cards most popular payments method whilst third party payment platforms are gaining ground
3 Online Channel Dynamics
3.1 The Online Channel’s Share of Total Retail Sales
3.1.1 South African online vs. offline channel forecasts
3.1.2 Online penetration: global and regional comparisons
3.1.2.1 South Africa Online Retail Sales Penetration compared to Global Average
3.1.2.2 South Africa Online Retail Sales Penetration compared to Middle East and African Average
3.2 Channel Dynamics
3.2.1 South Africa retail channel dynamics – future performance
3.2.2 Channel group share development
3.2.3 Individual channel performance
3.3 Category Dynamics
3.3.1 Online vs. offline retail sales comparison by category group, 2011
3.3.2 Online retail market dynamics by category
3.3.3 Online retail sales share by category group
3.3.4 Online retail sales growth by individual category
3.3.5 Food and grocery categories: market size and forecasts
3.3.6 Electrical and electronics categories: market size and forecasts
3.3.7 Music, video and entertainment software categories: market size and forecasts
3.3.8 Apparel, accessories, luggage and leather group categories: size and forecasts
3.3.9 Books, news and stationery categories: market size and forecasts
3.3.10 Sports and leisure equipment categories: market size and forecasts
3.3.11 Furniture and floor coverings categories: market size and forecasts
3.3.12 Home and garden categories: market size and forecasts
5 Appendix
5.1 About Canadean
5.2 Disclaimer


List of Tables
Table 1: South Africa Exchange Rate ZAR–US$ (Annual Average), 2006–2011
Table 2: Canadean Retail Channel Definitions
Table 3: Canadean Retail Category Definitions
Table 4: Changes to Canadean Taxonomy
Table 5: Canadean Retail Country Coverage
Table 6: South Africa Online vs. Offline Retail Sales and Forecast (ZAR billion),2006–2016.
Table 7: South Africa Online vs. Offline Retail Sales and Forecast (US$ billion),2006–2016
Table 8: South Africa Online vs. Offline Retail Sales and Forecast (% Share), 2006–2016
Table 9: South Africa Online Sales vs. Global Average
Table 10: South Africa Online Sales vs. Middle East and Africa
Table 11: South Africa Overall Retail Segmentation (ZAR billion) by Channel Group, 2006–2016
Table 12: South Africa Channel Retail Sales and Forecast (ZAR billion) by Channel Group, 2006–2016
Table 13: South Africa Channel Retail Sales and Forecast (US$ billion) by Channel Group, 2006–2016
Table 14: South Africa Channel Retail Sales and Forecast (% Share) by Channel Group, 2006–2016
Table 15: South Africa Channel Retail Sales and Forecast (ZAR billion) by Channel, 2006–2016
Table 16: South Africa Channel Retail Sales and Forecast (US$ billion) by Channel, 2006–2016
Table 17: South Africa Retail Sales Split (ZAR million), Online vs. Offline, 2011
Table 18: South Africa Retail Sales Split (US$ million), Online vs. Offline, 2011
Table 19: South Africa Online Retailers Market Dynamics by Category Group, 2006–2016
Table 20: South Africa Online Retail Sales and Forecast (ZAR million) by Category Group, 2006–2016
Table 21: South Africa Online Retail Sales and Forecast (US$ million) by Category Group, 2006–2016
Table 22: South Africa Total and Online Retail Sales in Food and Grocery Categories (ZAR million),2006–2016
Table 23: South Africa Total and Online Retail Sales in Food and Grocery Categories (US$ million),2006–2016
Table 24: South Africa Total and Online Retail Sales in Electrical and Electronics Categories (ZAR million),2006–2016
Table 25: South Africa Total and Online Retail Sales in Electrical and Electronics Categories (US$ million),2006–2016
Table 26: South Africa Total and Online Retail Sales in Music, Video and Entertainment Categories (ZAR million),2006–2016
Table 27: South Africa Total and Online Retail Sales in Music, Video and Entertainment Categories (US$ million),2006–2016
Table 28: South Africa Total and Online Retail Sales in Apparel, Accessories, and Luggage and Leather Categories (ZAR million),2006–2016
Table 29: South Africa Total and Online Retail Sales in Apparel, Accessories, and Luggage and Leather Categories (US$ million),2006–2016
Table 30: South Africa Total and Online Retail Sales in Books, News and Stationery Categories (ZAR million),2006–2016
Table 31: South Africa Total and Online Retail Sales in Books, News and Stationery Categories (US$ million),2006–2016
Table 32: South Africa Total and Online Retail Sales in Sports and Leisure Equipment Categories (ZAR million),2006–2016
Table 33: South Africa Total and Online Retail Sales in Sports and Leisure Equipment Categories (US$ million),2006–2016
Table 34: South Africa Total and Online Retail Sales in Furniture and Floor Coverings Categories (ZAR million),2006–2016
Table 35: South Africa Total and Online Retail Sales in Furniture and Floor Coverings Categories (US$ million),2006–2016
Table 36: South Africa Total and Online Retail Sales in Home and Garden Products Categories (ZAR million),2006–2016
Table 37: South Africa Total and Online Retail Sales in Home and Garden Products Categories (US$ million),2006–2016


List of Figures
Figure 1: The Triangulated Market Sizing Methodology
Figure 2: Total Internet Users and Penetration, 2006–2011
Figure 3: Total Fixed Broadband Internet Subscribers and Penetration, 2006–2011
Figure 4: Total Mobile Users and Penetration, 2006–2011
Figure 5: South Africa Category Group Online Retail Sales Penetration, 2011
Figure 6: Price Check Android Application Screenshot
Figure 7: South Africa Online and Offline Retail Sales and Forecast (US$ billion), 2006–2016
Figure 8: South Africa Online Sales vs. Global Average (% of Total Retail)
Figure 9: South Africa Online Sales vs. Middle East and African Countries Average (% of Total Retail)
Figure 10: South Africa Overall Retail Market Dynamics by Channel Group, 2006–2016
Figure 11: South Africa Retail Sales and Forecast (ZAR billion) by Channel Group, 2006–2016
Figure 12: South Africa Retail Sales, Online vs. Offline, 2011
Figure 13: South Africa Online Retailers Market Dynamics by Category Group, 2006–2016
Figure 14: South Africa Online Retail Sales and Forecast (US$ million) by Category Group, 2006–2016
Figure 15: Woolworths – Site Overview
Figure 16: Woolworths–Product View
Figure 17: Yuppiechef : Site Overview
Figure 18: Yuppiechef: Product List Overview
Figure 19: Yuppiechef : Search Feature
Figure 20: Yuppiechef : Product Page Overview –Product Zoom and Product Description
Figure 21: Yuppiechef: Product Page Overview – Video Feature
Figure 22: Yuppiechef: Registry Page Overview
Figure 23: Greenlove – Site Overview
Figure 24: Springleap – Product Page Overview
Figure 25: Pick n Pay Site Overview

Price: $ 1450.00

Related research categories

By sector: Retail (in Off-trade), Consumer (in Trends)

By market: South Africa (in Africa), Africa