Tag Archives: 2014
This year saw a rise in online spending across the globe, with USA reporting a 20% increase in online shopping on Cyber Monday as shoppers snubbed physical retail stores in favour of missing out on the holiday queues. Locally we are coming to the party, with recent report showing that 9.5% of South Africans are planning on doing their festive shopping online in 2013. Picking up on this trend, Style36.co.za and 5rooms.com, two of SA’s leading online fashion and furniture retailers, proved that SA is indeed embracing online shopping by breaking their sales records in one day with the launch of their Cyber Monday campaign. Offering customer the opportunity to shop top local and international brands at up to 80% off for 24 hours only, the campaign not only showed that South Africans are shopping online but that they are willing to spend large amounts of money when given the right opportunity. Style36, SA’s ultimate online style destination, set a record number of sales, receiving over 5000 orders in just 24 hours. For the first time ever, the site received over 100 000 visits in one day, a clear indication that South Africans are curious and excited about the prospect of shopping online. Online furniture, homeware and lighting store, 5rooms, went on to record their biggest sale day since inception in 2012 with close to 1000 orders being placed in the 24 hours provided. In total South African consumers spent over R3 million shopping on these two online stores alone. “We are very pleased with the results of our first ever Cyber Monday campaign and judging from the results we achieved, South Africans from all over the country are embracing online shopping. The most positive aspect of the campaign are that we not only managed to give our already loyal shoppers what they want that being incredible deals but also increased our customer base by over 60% in just 24 hours, introducing an entirely new audience to online shopping,” says Remo Giovanni Abbondandolo, Head of Marketing at Style36 and 5Rooms. Cyber Monday in SA proved to be one of the biggest online events of year a promising indication as to where e-commerce is headed in this country. If companies like Style36 and 5rooms continue to set the standard locally, South Africa is sure to hit the big time on the world stage in coming years. This article was contributed to [...]
E-COMMERCE is going through an innovative phase of development as more individuals have access to the internet and more retailers take their businesses online. Internet users in South Africa reached 13.2-million in 2012, up from 11.2-million in 2011, according to World Wide Worx. “We are forecasting an increase of 2.7-million new internet users this year, 2-million of whom will be mobile users,” says MD Arthur Goldstuck. This figure does not include new tablet users who have typically had previous internet access using another type of device and are therefore included in the previous figures. The main online activity of mobile internet users is sending and receiving e-mails, followed by browsing and surfing for leisure, followed by online research, says Mr Goldstuck. He says in 2012 South Africa’s online shoppers spent a total of R3.38bn on purchasing traditional retail products — not including air tickets, accommodation and travel — reflecting a growth of 30% over 2011. “We are expecting a further 25% growth in online retail this year,” he adds. Mr Goldstuck says dominant new online shopping trends tend to emerge every two years. He says four or so years ago saw the rise of websites allowing rand purchases of products aggregated from overseas sites, particularly electronics goods, and two years ago group buying websites started making a major impact on the market. “More recently we are seeing a new category of high fashion websites such as Zando and City Mob emerge, which aggregate name brand clothing.” These online retailers differentiate themselves with low-cost delivery and the ability to return goods, whereby the courier waits while the customer tries on the clothing. Liz Hillock, head of marketing at Kalahari.com, says the highest conversion rate of internet users from browsing to buying is among tablet users. “Last December we sold three-and-a-half times more tablets than laptops, and these users have a higher propensity to shop online.” As a result, online retailers and other e-commerce oriented businesses are designing their websites to cater for tablets and other mobile devices, she says. She says the recently released 2013 annual Kalahari.com Mobile and Tablet Survey shows that 92% of online shoppers own a smartphone compared to 78% last year, and 68% have purchased items online using their phone. The survey also shows that 47% of respondents own a tablet compared to 34% last year. Ms Hillock says more experienced online shoppers are buying an increasingly [...]
The South African market is going to be in a competitive space as larger players and international retailers and service providers continue to penetrate the market and seek to absorb sectors currently dominated by SMEs. How can the average business ensure sustainable growth in 2014? One word: Online. Everything, and I mean everything, is moving online. Plumbers see the need to promote themselves online and so do seedling growers, vehicle manufacturers and paper mills. Accounts, orders, communication, storage and recruiting are more efficient online and the list goes on and on. Every year, a percentage of the established markets of both offline advertising and traditional retail are siphoned off by the internet. This is what is growing global e-Commerce at over 20% per annum. While the e-market is growing organically, it’s mainly hijacking existing offline revenues. Despite this, it might seem “safer” to adopt a “wait and see” approach to investments, but it is clear that those pursuing disruptive innovation through leveraging customer relations and efficiencies online are reaping the results. (Just check out some of the market share and brand equity FNB acquired by being a first mover in innovative online consumer engagement.) 2013 is the year to prepare one’s online partners (retail, strategy and media) and draft a serious online investment strategy. I’m not talking about putting up GoogleAds, but seriously considering ways to undercut the competition and offer more value to your clients in 2014 through online efficiencies, portals, information and retail channels. If you’re not, someone else will be. Taking the Pain While some have been burned by over-investing in a limited online market, the majority of innovative internet-launched initiatives are reaping a great ROI. But to avoid painful expenditures and misdirection of online marketing, the business should keep in mind: 1. The Internet = NOT Magic. What doesn’t work, sell or attract offline, probably won’t work, sell or attract online. 2. Is it needed? Is the facility of service being offered online really needed? a. How much time does it same the client? b. How easy is it for the client to do? (If it takes more than 5 seconds for them to figure out the flow, dump the idea.) c. How many current clients do you have that would benefit from this? Don’t expect to triple market-share just because of an online gadget. 3. Is there a way to Test the Market with your approach, [...]
Seriously, just the best overview of e-Commerce ever. A fantastic overview for beginners and experienced users as well. This explains “What is e-Commerce?”, “The Brief History of e-Commerce”, “e-Commerce Classifications”, “The Advantages of e-Commerce” and finally, “Where is e-Commerce Today”.