Consumer Attitudes & Online Retail Dynamics in South Africa
Report description
Synopsis
Consumer Attitudes & Online Retail Dynamics in South Africa' provides 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 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 the key drivers of this market in the future.
Summary
This report is the result of ICD’s extensive market research covering the online retail industry in South Africa. “Consumer Attitudes & Online Retail Development in South Africa” provides the magnitude, growth, share, and dynamics of the online retail market and is an essential tool for companies either active in this sector or which are seeking to target this channel. The report provides core insights into consumer behaviour and highlights the latest online trends and their impact on online product sales. Core data sets give both historical context and a view into the future - providing data from 2005 through to 2015 and allowing marketers to update their strategic planning and fill gaps in their knowledge about this rapidly evolving channel. 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 players, the report also provides insights and ideas about how best to approach growing online sales for your business. Together these three core elements; market dynamics, consumer understanding and best practice examples will allow readers to easily understand the nature and development of online retail in South Africa and provide insight into how best to exploit the opportunities in the market.
Scope
The report analyses online consumer behaviour, market dynamics and best practice approaches to online retail in South Africa. In particular, core market data sets cover 8 product groups and 25 individual product markets within South Africa.
Product Coverage: Clothing & Footwear Jewelry & Watches Luggage & Leather goods Printed Media Stationery & Cards Communications Equipment Computer Hardware & Software Consumer Electronics Household Appliances Photographic Equipment Drinks Household Products Packaged Food Personal Care Tobacco Unpackaged Food Floor Coverings Furniture Gardening & Outdoor Living Home Improvement Home Wares Games Software Music & Video Sports Equipment Toys & Games
Reasons To Buy
This report provides readers with unparalled levels of detail and insight into the development of online retail sales within South Africa: - Understand consumer behaviour and online trends in South Africa - Understand which products will be the major winners and losers in the coming years - Assess the impact of economic recession and recovery on market growth - 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
Key Highlights
After a four year period of steady economic growth, real GDP in South Africa declined by 1.7% in 2009. In contrast, the country recorded real GDP growth of 2.8% in 2010 according to estimates by the IMF, despite the global financial crisis. In the year, the growth in South Africa was attributed to the increase in consumer spending during the FIFA World Cup 2010. The South African government has also attempted to reduce the rampant inflation in the country through the strong rand, despite upward price pressures from rising food and oil prices during the review period. Going forward, the South African economy is forecast to grow at a strong CAGR of 9.39% during 2010–2015, reflecting declining unemployment rates and investments in infrastructure development in the country. During the review period, retail sales in the country recorded a similar trend. Between 2005 and 2007, South African retail spending demonstrated strong growth before slowing in 2008 and 2009. Following this, retail sales in South Africa are anticipated to grow at a compound annual growth rate (CAGR) of 10.71% during the forecast period, reflecting the growth in household incomes, particularly in the lower household income groups rather than middle and higher income groups in the country.
Consumer Attitudes & Online Retail Dynamics in South Africa' provides 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 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 the key drivers of this market in the future.
Summary
This report is the result of ICD’s extensive market research covering the online retail industry in South Africa. “Consumer Attitudes & Online Retail Development in South Africa” provides the magnitude, growth, share, and dynamics of the online retail market and is an essential tool for companies either active in this sector or which are seeking to target this channel. The report provides core insights into consumer behaviour and highlights the latest online trends and their impact on online product sales. Core data sets give both historical context and a view into the future - providing data from 2005 through to 2015 and allowing marketers to update their strategic planning and fill gaps in their knowledge about this rapidly evolving channel. 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 players, the report also provides insights and ideas about how best to approach growing online sales for your business. Together these three core elements; market dynamics, consumer understanding and best practice examples will allow readers to easily understand the nature and development of online retail in South Africa and provide insight into how best to exploit the opportunities in the market.
Scope
The report analyses online consumer behaviour, market dynamics and best practice approaches to online retail in South Africa. In particular, core market data sets cover 8 product groups and 25 individual product markets within South Africa.
Product Coverage: Clothing & Footwear Jewelry & Watches Luggage & Leather goods Printed Media Stationery & Cards Communications Equipment Computer Hardware & Software Consumer Electronics Household Appliances Photographic Equipment Drinks Household Products Packaged Food Personal Care Tobacco Unpackaged Food Floor Coverings Furniture Gardening & Outdoor Living Home Improvement Home Wares Games Software Music & Video Sports Equipment Toys & Games
Reasons To Buy
This report provides readers with unparalled levels of detail and insight into the development of online retail sales within South Africa: - Understand consumer behaviour and online trends in South Africa - Understand which products will be the major winners and losers in the coming years - Assess the impact of economic recession and recovery on market growth - 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
Key Highlights
After a four year period of steady economic growth, real GDP in South Africa declined by 1.7% in 2009. In contrast, the country recorded real GDP growth of 2.8% in 2010 according to estimates by the IMF, despite the global financial crisis. In the year, the growth in South Africa was attributed to the increase in consumer spending during the FIFA World Cup 2010. The South African government has also attempted to reduce the rampant inflation in the country through the strong rand, despite upward price pressures from rising food and oil prices during the review period. Going forward, the South African economy is forecast to grow at a strong CAGR of 9.39% during 2010–2015, reflecting declining unemployment rates and investments in infrastructure development in the country. During the review period, retail sales in the country recorded a similar trend. Between 2005 and 2007, South African retail spending demonstrated strong growth before slowing in 2008 and 2009. Following this, retail sales in South Africa are anticipated to grow at a compound annual growth rate (CAGR) of 10.71% during the forecast period, reflecting the growth in household incomes, particularly in the lower household income groups rather than middle and higher income groups in the country.
Table of contents
IntroductionWhat is this Report About?
Definitions
Summary
Methodology
Overview
The triangulated market sizing method Industry surveys in the creation of retail market data Quality control and standardized processes Consumer Insight: Online Shopping Attitudes and Behaviours Overview of the South Africa Online Shopping Environment Liberalization of the telecommunications market to support the South African internet landscape New submarine broadband cable landings to improve fixed broadband connections in South Africa While mobile penetration is high, mobile internet penetration remains low due to low technological education Consumer Attitudes and Behavior South Africa leads the African continent in terms of online retail sales Online retailers focus on providing a satisfying online shopping experience to drive revenues Government initiatives to promote online retail in the country proving successful Food and grocery products perform strongly in South Africa; online retail revenues for the category at ZAR23.2 billion in 2010 More South Africans prefer to make their online purchases through phones rather than through computers Credit cards and debit cards most popular payments method whilst third party payment platforms are gaining ground Online Channel Dynamics The Online Channel’s Share of Total Retail Sales South African online vs. offline channel forecasts Online penetration: global and regional comparisons South Africa Online Retail Sales Penetration compared to Global Average South Africa Online Retail Sales Penetration compared to West European Average Channel Dynamics South Africa retail channel dynamics – future performance Channel group share development Individual channel performance Category Dynamics Online vs. offline retail sales comparison by category group, 2010 Online retail market dynamics by category group Online retail sales share by category group Online retail sales growth by individual category Food and grocery categories: market size and forecasts Electrical and electronics categories: market size and forecasts Music, video and entertainment software categories: market size and forecasts Apparel, accessories and luxury group categories: size and forecasts Books, news and stationery categories: market size and forecasts Sports and leisure equipment categories: market size and forecasts Furniture and floor coverings categories: market size and forecasts Home and garden categories: market size and forecasts Case Studies: Leading Online Retailers in South Africa Retailer 1: Woolworths Holdings Limited Business description Site experience Retailer 2: Yuppiechef Business description Site experience Other Innovative Retailers in South Africa Springleap Pick n Pay Appendix Methodology Contact us About ICD Research Disclaimer
List of Tables
Table 1: South Africa Exchange Rate ZAR–US$ (Annual Average), 2005–2010
Table 2: ICD Research Retail Channel Definitions
Table 3: ICD Research Retail Category Definitions
Table 4: ICD Research Retail Country Coverage
Table 5: South Africa Online vs. Offline Retail Sales and Forecast (ZAR Billion), 2005–2015
Table 6: South Africa Online vs. Offline Retail Sales and Forecast (US$ Billion), 2005–2015
Table 7: South Africa Online vs. Offline Retail Sales and Forecast (% Share), 2005–2015
Table 8: South Africa Online Sales vs. Global Average
Table 9: South Africa Online Sales vs. Western Europe
Table 10: South Africa Overall Retail Segmentation (ZAR Billion) by Channel Group, 2005–2015
Table 11: South Africa Channel Retail Sales and Forecast (ZAR Billion) by Channel Group, 2005–2015
Table 12: South Africa Channel Retail Sales and Forecast (US$ Billion) by Channel Group, 2005–2015
Table 13: South Africa Channel Retail Sales and Forecast (% Share) by Channel Group, 2005–2015
Table 14: South Africa Channel Retail Sales and Forecast (ZAR Billion) by Channel, 2005–2015
Table 15: South Africa Channel Retail Sales and Forecast (US$ Billion) by Channel, 2005–2015
Table 16: South Africa Retail Sales Split (ZAR Billion), Online vs. Offline, 2010
Table 17: South Africa Retail Sales Split (US$ Billion), Online vs. Offline, 2010
Table 18: South Africa Online Retailers Market Dynamics by Category Group, 2005–2015
Table 19: South Africa Online Retail Sales and Forecast (ZAR Billion) by Category Group, 2005–2015
Table 20: South Africa Online Retail Sales and Forecast (US$ Billion) by Category Group, 2005–2015
Table 21: South Africa Total and Online Retail Sales in Food and Grocery Categories (ZAR Million), 2005–2015
Table 22: South Africa Total and Online Retail Sales in Food and Grocery Categories (US$ Million), 2005–2015
Table 23: South Africa Total and Online Retail Sales in Electrical and Electronics Categories (ZAR Million), 2005–2015
Table 24: South Africa Total and Online Retail Sales in Electrical and Electronics Categories (US$ Million), 2005–2015
List of Figures
Figure 1: The Triangulated Market Sizing Methodology
Figure 2: Total Fixed Broadband Internet Subscribers (Millions), 2005–2010
Figure 3: Mobile Phone Penetration, 2005–2010
Figure 4: South Africa Online Retail Growth vs. Total Retail Growth, 2005–2015
Figure 5: South Africa Category Group Online Retail Sales Penetration, 2010
Figure 6: South Africa Online and Offline Retail Sales and Forecast (US$ Billion), 2005–2015
Figure 7: South Africa Online Sales vs. Global Average (% of Total Retail)
Figure 8: South Africa Online Sales vs. Western European Countries Average (% of Total Retail)
Figure 9: South Africa Overall Retail Market Dynamics by Channel Group, 2005–2015
Figure 10: South Africa Retail Sales and Forecast (ZAR Billion) by Channel Group, 2005–2015
Figure 11: South Africa Retail Sales, Online vs. Offline, 2010
Figure 12: South Africa Online Retailers Market Dynamics by Category Group, 2005–2015
Figure 13: South Africa Online Retail Sales and Forecast (US$ Billion) by Category Group, 2005–2015
Figure 14: Woolworths – Site Overview
Figure 15: Woolworths–Product View
Figure 16: Woolworths: WREWARDS Page Overview
Figure 17: Yuppiechef : Site Overview
Figure 18: Yuppiechef: Product Page Overview – Product Description and Stock Indicator
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: Springleap – Product Page Overview
Figure 24: Pick n Pay Site Overview
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