The accelerated evolution of online shopping in South Africa

It was in 2003 that the world discovered the impact that a novel coronavirus could have on online shopping. The outbreak of SARS-CoV-1 gave Alibaba its wings, placing the Chinese e-tailer on a trajectory that would lead them to achieve the milestone of US$ 1 trillion across their digital economy in the fiscal year which ended on 31 March 2020. It is unsurprising then that SARS-CoV-2, also known as COVID-19, has contributed to a boom in online shopping in South Africa.

Online shopping on the increase

Research compiled by Nielsen highlights that shoppers are showing an increased preference for online shopping, and the reason given for this is the desire to remain socially distanced in the time of COVID-19.  Online shopping is becoming increasingly prevalent, with a high percentage of shoppers surveyed in May 2020 stating that they had bought something online within the past week. According to the same survey, 57% of participants were keeping their options open and had visited an online store that they had not previously browsed during this period, which shows that the pandemic has offered unprecedented opportunities for new e-tailers. 

Retailers selling food, clothing, and homewares online have reported massive strides forward. It was revealed at the recently-held Fresh Connections, Southern Africa virtual conference that e-tailing in the grocery shopping sphere was on the increase, with 64% of produce shoppers using online shopping for the first time in the era of COVID-19. The Mr Price Group has revealed that in the 20 weeks leading up to 15 August 2020, their post-hard-lockdown online sales were up 75%, with weekly numbers surpassing those seen in Black Friday week in 2019.

Further proof of retail revolution is found in the Naspers Integrated Annual Report 2020, which states that the group revenue for South Africa's e-tail giant, Takealot, has increased by 23% year on year. According to Kim Reid, founder and CEO of Takealot, as quoted in the Naspers Integrated Annual Report, the online opportunity will "only increase" as South Africa reaches the end of its COVID-19 hurdle.

The growth and evolution of South African e-tailers

Various South African e-tailers have risen to the challenges created by COVID-19 in some remarkable ways. Netflorist, for example, has expanded its product range, which previously consisted of flowers, gifts and novelties, to include fresh produce and groceries. 

Massmart, the owner of respected South African brands like Game, Makro and Builder's Warehouse, has announced plans to invest heavily in its online sales platform. The Walmart-owned South African group has reported 100% growth in eCommerce sales between the start of lockdown and June 2020 when compared to the same period last year.

The future of online shopping

South African shoppers can expect to see online retail becoming increasingly slick and sophisticated in years to come. Takealot, for one, has expressed a commitment to the ongoing development of artificial intelligence (AI). AI, which involves the development of computer systems with "human skills" such as speech recognition and visual perception, has numerous further applications in the world of online shopping. The focus here is on hyper-personalisation, the introduction of virtual personal shoppers, and improved dialogue systems and customer support, to name just a few. Globally, online retail icons such as Alibaba, Amazon and eBay have integrated AI into various stages of their operations, from sales and customer support to storage logistics. 

The future of South African retail has been accelerated by the Covid-19 pandemic, with retailers needing to expand and evolve to meet the needs of a society with changing needs and priorities. 3Cube Property Solutions, with our broad experience in the logistics industry and wide range of industrial and commercial properties available for sale and to rent, is an ideal property partner for any e-tailer or logistics business. Contact us for more information.