The number of consumers in South Africa making use of online shopping platforms is likely to increase over the next few years, due to the escalating cost of transport, as well as the rise of mobile phones used to make purchases.
This is according to Fatima Sullivan of DHL Express, logistics partner to global e-tailers, who says that although there is an increased appetite for online shopping amongst South Africans, there still seems to be a lack of effective online shopping platforms for them to use.
Sullivan says that recent research by InMobi has highlighted that South African retailers require a much stronger online presence.
“The research has revealed that local consumers are increasingly turning to their mobile phones to augment their shopping experience, with 80% of consumers in malls using their mobile devices to help them shop. The study also uncovered how few retailers actually have an effective online presence in place.”
She also points to research done in Britain, which revealed that online shoppers are currently spending double the amount through Web sites, compared to 10 years ago, which may result in many “bricks and mortar” outlets eventually closing.
“In a fast evolving technology space, retail players cannot afford to be left behind. It is becoming increasingly competitive, and in the current tough economic environment, retailers need to fight for their market share and any additional services that they are able to offer customers will help in this regard.”
Sullivan says that although South African retailers seem to be slowly adapting as this trend grows and develops, many have still not adopted proper systems and Web sites which are user friendly and effective.
“We are witnessing a gradual increase of packages being delivered to consumers who choose to do their shopping online.”
She says that in addition to online Web sites, South Africa retailers also need to consider mobile sites.
“Google’s Shopper Marketing Agency Council recently found that 79% of shoppers can be classified as ‘mobile shoppers’. Now is the time for retailers to place more importance on online portals, as this is the direction that the industry is clearly heading in.”
According to Simon Leps, CEO of Fontera Digital Works, the South African retail industry is experiencing significant changes when it comes to common practice.
“The industry is evolving and slowly adopting new channels due to the ever-changing expectations of more digitally-empowered and global thinking consumers. Retailers need to adapt and make use of innovative e-commerce platforms in order to remain competitive.”
Sullivan says that with reliable delivery systems in place and plenty of choice available, consumers are starting to discover that click-and-ship is in many ways more gratifying than traditional shopping.
“People find that it fits into their lives much more easily than a trip to the store, where selection may be limited and comparing prices done the old fashioned way, manually. Also, online shopping does not involve the traditional hassles that come with trips to the shops such as vying for a parking spot, waiting in line to try on clothes, waiting in line to pay and then fighting traffic on the way home.”
She says that previously the mantra for successful retailing was location, location, location.
“Now, e-commerce is redefining the concept of place, allowing companies to create a virtual identity that can be marketed just like a physical one, but enables consumers to travel between both worlds,” concludes Sullivan.