Tag Archives: growth
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 [...]
In early 2013, the Boston Consulting Group published ‘Ten Things to Know About African Consumers’. Seven out of ten of these continent-wide trends are likely to boost online retail growth and B2C e-commerce in Africa. I’ve listed the brief below. Optimism about the Future – African’s, with the exception of Northern African nations are exceptionally positive about future economic developments. By and large, Africans are very entrepreneurial. Partially due to a lack of established career paths and an inadequate formal education structure, ambitious individuals tend towards creating new opportunities. Techno- Freaks – There is wild craze for all things digital and the speed and scale the internet and technology uptake is driving major change and economic opportunities. From football clubs to soft drinks, the African continent loves the international brand. This is a big selling point for international players with a serious brand appeal of value add. Massive discrepancies are often found in official market data and real markets, which include parallel and informal sector sales, can often be much higher and reflect greater opportunities. Quality sells. Despite higher prices, a better value-add and long-term investment coupled with higher prices can conquer market share. Look at the Toyota brand, but there are many other examples to back this up. Successful, modern retail outlets, greater varieties and cheaper products drive the cognizant African consumer. The evolving retail preferences on the continent imply that if online retail can offer convenience as well as opportunities for cost-saving, then it has a bright future in the coming years. While online retail has a ways to go, more affluent markets in Africa are ready for the practice and as the rapidly growing economies begin to stabilize it is expected that a massive wave of online e-commerce will follow. Africa may be lagging in online stores and e-commerce, but with growing wealth and broadband availability a massive spike is expected of the 3-7 year period with growth of between 20-25% in the next 3 years leading up to it. For more see: www.bcgperspectives.com and for Online Retail Solutions & e-Commerce Author: Jonathan D. Novotny is an e-commerce evangelist and co-founder of the CloudShop/CloudSales online retail franchise.