Online retailer, Spree predicts online shopping’s share of total retail sales in South Africa will increase exponentially over the next three years, rising to about 4% by 2021 from its current 1%.
According to the online fashion retailer, barriers to entry such as lack of internet access and limited online payment methods are rapidly being overcome. There are also great improvements in the experience and convenience of online shopping that will draw shoppers online.
Vincent Hoogduijn, CEO of ecommerce at Media24, the company that owns Spree, says growth figures have been exponential for their online fashion business. “In mid-2017, total sales at Spree were up 88% year-on-year, sales on the shopping app more than doubled and daily transactions increased by 76%. If this growth continues and is mirrored by other players we will see online retail gaining serious ground and growing market share measurably over the next couple of years.”
Hoogduijn further says South African shopping trends often follow big global ones. “Globally, online retail currently stands at 11% of all retail sales with China coming in well over 20% and large markets such as the UK and Germany standing at 18% and 11% respectively.” This is according to the Centre for Retail Research, Emarketer and Internet Retailer. (via Bizcommunity)
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