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online retail south africa

Online Retail in South Africa 2023

Stephen Timm | South Africa | 18 September 2023

Online Retail in South Africa 2021

Gary Phillips | South Africa | 06 November 2021

Online Retail in South Africa 2020

Duncan Bekker | South Africa | 17 August 2020

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Report Coverage

This report examines South Africa’s burgeoning online retail industry, focusing on large online only players like Takealot and the increasing ecommerce capacity of the major traditional retailers. It includes information on the state of the industry, major sales categories, recent developments and trends, corporate actions, and influencing factors such as Black Friday and delivery. There are profiles of 47 companies including major players such as Takealot, international players including Alibaba and Amazon and online only companies such as Gumtree and Bob Shop.

The Online Retail in South Africa

Following steep growth during the pandemic, online sales growth has begun to slow, growing by 30% in 2022 from 40% in 2021. Sales growth is still significantly faster than total retail sales which grew by just 1.7% in 2022. The Competition Commission has identified a number of practices used by local online retailers that it says are anti-competitive such as preventing suppliers who use their platforms from charging lower prices for their products on competing platforms, or favouring their own products.

Amazon Launch

Amazon already has a presence in South Africa through its cloud computing service division Amazon Web Service, and it is widely expected that it plans to launch ecommerce in South Africa. The new R4.5bn River Club development, which will hold Amazon’s new Cape Town headquarters is under construction. The launch could put local online retailers under pressure and could result in consolidation.

Investigation

Chinese fashion ecommerce platform Shein is being investigated due to concerns that it could be abusing a tariff regime which allows importers to bring in small quantities of clothing at very low tariffs. This follows criticism locally, and from authorities across the world. Demand from Chinese ecommerce players is such that a cross-border ecommerce logistics and distribution service from China to South Africa now has hundreds of delivery vehicles. Foreign online retailers have no physical presence in the country, meaning they may not comply with local laws or pay tax.

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Online Retail in South Africa 2023

Full Report

R 20 000.00(ZAR) estimated $1068.03 (USD)*

Industry Overview

R 14 000.00(ZAR) estimated $ 747.62 (USD)*

Historical Reports

Online Retail in South Africa 2021-11-06

R 6 500.00(ZAR) estimated $347.11 (USD)*

View Report Add to Cart

Online Retail in South Africa 2020-08-17

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 5
2.3. Size of the Industry 6
3. LOCAL 8
3.1. State of the Industry 8
3.2. Key Trends 16
3.3. Key Issues 16
3.4. Notable Players 17
3.5. Trade 19
3.6. Corporate Actions 19
3.7. Regulations 20
3.8. Enterprise Development and Social Development 22
4. AFRICA 23
5. INTERNATIONAL 24
6. INFLUENCING FACTORS 26
6.1. Economic Environment 26
6.2. Labour 26
6.3. Environmental Issues 27
6.4. Technology, R&D, Innovation 28
6.5. Input Costs 29
6.6. Black Friday 30
6.7. Delivery 30
6.8. Crime 31
7. COMPETITIVE ENVIRONMENT 32
7.1. Competition 32
7.2. Ownership Structure of the Industry 33
7.3. Barriers to Entry 35
8. INDUSTRY SUMMARY 36
9. OUTLOOK 37
10. INDUSTRY ASSOCIATIONS 37
11. REFERENCES 37
11.1. Publications 37
11.2. Websites 38
APPENDIX 1 40
Summary of Notable Players 40
COMPANY PROFILES 48
Africa Online Retail (Pty) Ltd 48
Alibaba Group Holding Ltd 50
Amazon.com Inc 53
Appetite South Africa (Pty) Ltd 57
Bifrost Distribution (Pty) Ltd 58
Bob Group (Pty) Ltd 59
Bolt Services ZA (Pty) Ltd 61
Bubblestorm Management (Pty) Ltd 63
Caught Online (Pty) Ltd 65
Clicks Group Ltd 66
Cotton On South Africa (Pty) Ltd 70
Dis-Chem Pharmacies Ltd 73
Dreamware Technology (Pty) Ltd 85
Evetech (Pty) Ltd 86
Fashion United SA (Pty) Ltd 88
First Technology IT Suppliers (Pty) Ltd 90
Foschini Group Ltd (The) 91
Gumtree South Africa (Pty) Ltd 96
HomeChoice (Pty) Ltd 97
Jade E-Services South Africa (Pty) Ltd 99
JD Consumer Electronics and Appliances (Pty) Ltd 101
Massmart Holdings Ltd 103
Mr Price Group Ltd 108
Munyhub Online Ticketing Services (Pty) Ltd 114
Naspers Ltd 115
Nedbank Ltd 119
NetFlorist (Pty) Ltd 128
OneCart (Pty) Ltd 129
Onedayonly Offers (Pty) Ltd 131
Pepkor Holdings Ltd 132
Pick n Pay Stores Ltd 137
Quench Delivery (Pty) Ltd 142
Retailability (Pty) Ltd 143
Shopify Inc 147
Shoprite Holdings Ltd 150
SPAR Group Ltd (The) 176
Supper Society (Pty) Ltd (The) 181
Takealot Online (RF) (Pty) Ltd 182
Tetra Computing (Pty) Ltd 187
Truworths International Ltd 188
Uber Technologies Inc 193
VMS Group (Pty) Ltd 196
Vodacom Group Ltd 198
Woolworths Holdings Ltd 202
Wootware Computers (Pty) Ltd 207
Yuppiechef Online (Pty) Ltd 208
Zara Retail South Africa (Pty) Ltd 210

Report Coverage

This report examines the latest trends in South Africa’s flourishing online retail industry, giving particular focus to large online-only companies such as Takealot, growth in online trade among South Africa’s national retailers and key issues for smaller retailers entering online trade. It includes comprehensive information on the state of the industry, growth, innovation and the performance of the major players. There are profiles of 41 companies including global players such as Amazon and Alibaba, the major local companies including Takealot (Takealot, Superbalist and Mr D Food) and Massmart, and retailers that are significantly increasing online sales such as Shoprite, Pick n Pay and Woolworths.

The Online Retail Industry in South Africa

The South African online retail industry was one of the few winners in 2020, which digital economy commentators believe was a “tipping point” for online retailing’s penetration of the retail market. While online retail is growing rapidly in South Africa, it remains small in revenue terms relative to sales at retail stores. Internationally, seven of the top ten largest listed companies globally are digital platform providers and they are occupying an increasingly important place in the global economy.

Pandemic Boost

Online sales rocketed in 2020 as South Africans took to online ordering to avoid leaving their homes, and there was a sharp increase in demand for grocery deliveries. Besides the purchase of airtime and data, the most popular products bought online were clothing and groceries. Major retail chains rapidly expanded their online services by launching new brands and through acquisition. Logistics, warehousing and delivery have become increasingly critical, while independent retailers are concerned about the huge investment required in technology and distribution capability.

Innovation

Online retailing, particularly in South Africa, is a relatively new and developing industry, which means it is characterised by high levels of innovation and change. Recent acquisitions of small startup online retailers and tech providers such as Pick n Pay’s purchase of Bottles and Imperial’s purchase of Parcelninja show that much of this innovation can take place in the margins and large retail ecommerce businesses are on the lookout for disruptive developments. Technological innovation centres around user experience and order fulfilment .

Read More..
Online Retail in South Africa 2021

Full Report

R 6 500.00(ZAR) estimated $347.11 (USD)*

Industry Overview

R 4 550.00(ZAR) estimated $ 242.98 (USD)*

Historical Reports

Online Retail in South Africa 2023-09-18

R 20 000.00(ZAR) estimated $1068.03 (USD)*

View Report Add to Cart

Online Retail in South Africa 2020-08-17

R 1 900.00(ZAR) estimated $101.46 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 8
2.2. Geographic Position 9
3. SIZE OF THE INDUSTRY 10
4. STATE OF THE INDUSTRY 32
4.1. Local 32
4.1.1. Corporate Actions 36
4.1.2. Regulations 36
4.1.3. Enterprise Development and Social Economic Development 38
4.2. Continental 39
4.3. International 43
5. INFLUENCING FACTORS 45
5.1. COVID-19 45
5.2. Economic Environment 46
5.3. Rising Input Costs 48
5.4. Technology, Research and Development (R&D) and Innovation 50
5.5. Environmental Concerns 52
5.6. Labour 53
6. COMPETITION 57
6.1. Barriers to Entry 59
7. SWOT ANALYSIS 59
8. OUTLOOK 61
9. INDUSTRY ASSOCIATIONS 61
10. REFERENCES 62
10.1. Publications 62
10.2. Websites 63
APPENDIX 1 64
Summary of Notable players 64
COMPANY PROFILES 69
Alibaba Group Holding Ltd 69
Amazon.com Inc 72
Bidorbuy (Pty) Ltd 76
Bolt Services ZA (Pty) Ltd 78
Bubblestorm Management (Pty) Ltd 80
Carbonite Inc 82
Caught Online (Pty) Ltd 84
Clicks Group Ltd 85
Cotton On South Africa (Pty) Ltd 89
Dis-Chem Pharmacies Ltd 92
Evetech (Pty) Ltd 103
Fashion United SA (Pty) Ltd 105
Foschini Group Ltd (The) 107
Gumtree South Africa (Pty) Ltd 112
HomeChoice (Pty) Ltd 113
Jade E-Services South Africa (Pty) Ltd 115
JD Consumer Electronics and Appliances (Pty) Ltd 117
Loot Online (Pty) Ltd 119
Massmart Holdings Ltd 121
Mr Price Group Ltd 127
Munyhub Online Ticketing Services (Pty) Ltd 133
Naspers Ltd 135
NetFlorist (Pty) Ltd 138
OneCart (Pty) Ltd 139
Onedayonly Offers (Pty) Ltd 140
OrderIn (Pty) Ltd 142
Pick n Pay Stores Ltd 144
Quench Delivery (Pty) Ltd 149
Shopify Inc 151
ShopLi (Pty) Ltd 154
Shoprite Holdings Ltd 155
SPAR Group Ltd (The) 161
Spoiler Tags (Pty) Ltd 167
Takealot Online (RF) (Pty) Ltd 168
Truworths International Ltd 173
Uber Technologies Inc 179
VMS Group (Pty) Ltd 182
Woolworths Holdings Ltd 184
Wootware Computers (Pty) Ltd 188
Yuppiechef Online (Pty) Ltd 189
Zara Retail South Africa (Pty) Ltd 191

Report Coverage

This report examines South Africa’s burgeoning online retail industry, with a particular focus on large online only players like Takealot, and the increasing ecommerce capacity of the country’s major traditional retailers. The report includes detailed information on the state and size of the sector, developments and corporate actions and company performance. It includes comprehensive information on the effect of coronavirus and outlines developments emanating from the outbreak as well as from technological advances. There are profiles of 40 companies including major international companies such as Amazon and Alibaba, online only players such as Takealot, marketplaces including Bidorbuy and OneDayOnly, omnichannel retailers including Woolworths, Pick n Pay and Shoprite and classified companies such as Gumtree.

Online Retail

South Africa’s online retail sector, though small by the standards of developed international markets, has been growing rapidly in scope and value. Despite enjoying double-digit sales growth for many years, online retail’s share of South Africa’s retail trade was still below 2% in 2019. The industry has huge long term growth potential. Investment in technology and supply chains is increasing, and the coronavirus outbreak and lockdown has driven an unprecedented boom in online spending and adoption. However the crisis has also affected the economy, employment, investment and incomes, and put pressure on consumer spending.

Coronavirus

The coronavirus outbreak and economic lockdown had a huge impact on the online retail industry. It is estimated that online retail sales grew by around 40% during lockdown. International forecasts suggest that year-on-year growth may be in the region of 100%. A key impact of the crisis has been the huge increase in ecommerce adoption among businesses and consumers who otherwise may not have entered the online market for some time. There has been huge growth at many of the omnichannel retailers, although online gains have been partly offset by declines in consumer spending in physical stores and the wider retail sector.

Read More..
Online Retail in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $101.46 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 71.02 (USD)*

Historical Reports

Online Retail in South Africa 2023-09-18

R 20 000.00(ZAR) estimated $1068.03 (USD)*

View Report Add to Cart

Online Retail in South Africa 2021-11-06

R 6 500.00(ZAR) estimated $347.11 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 6
4. STATE OF THE INDUSTRY 18
4.1. Local 18
4.1.1. Corporate Actions 35
4.1.2. Regulations 37
4.1.3. Enterprise Development and Socio-Economic Development 39
4.2. Continental 40
4.3. International 43
5. INFLUENCING FACTORS 44
5.1. Economic Environment 44
5.2. Input Costs 45
5.3. Technology, Research and Development (R&D) and Innovation 47
5.4. Labour 49
5.5. Environmental Concerns 51
5.6. Barriers to Ecommerce Adoption 52
6. COMPETITION 53
6.1. Barriers to Entry 56
7. SWOT ANALYSIS 57
8. OUTLOOK 58
9. INDUSTRY ASSOCIATIONS 59
10. REFERENCES 59
10.1. Publications 59
10.2. Websites 61
APPENDIX 1 62
Summary of Notable players 62
COMPANY PROFILES 67
ALIBABA GROUP HOLDING LTD 67
AMAZON.COM INC 70
BIDORBUY (PTY) LTD 74
BOLT SERVICES ZA (PTY) LTD 76
BUBBLESTORM MANAGEMENT (PTY) LTD 78
CARBONITE INC 80
CLICKS GROUP LTD 82
COTTON ON SOUTH AFRICA (PTY) LTD 86
DIS-CHEM PHARMACIES LTD 88
EVETECH (PTY) LTD 98
FASHION UNITED SA (PTY) LTD 100
FOSCHINI GROUP LTD (THE) 102
GUMTREE SOUTH AFRICA (PTY) LTD 107
HOMECHOICE (PTY) LTD 108
JADE E-SERVICES SOUTH AFRICA (PTY) LTD 110
JD CONSUMER ELECTRONICS AND APPLIANCES (PTY) LTD 112
LOOT ONLINE (PTY) LTD 114
MASSMART HOLDINGS LTD 116
MR PRICE GROUP LTD 122
MUNYHUB ONLINE TICKETING SERVICES (PTY) LTD 127
NASPERS LTD 128
NETFLORIST (PTY) LTD 131
ONECART (PTY) LTD 132
ONEDAYONLY OFFERS (PTY) LTD 133
ORDERIN (PTY) LTD 134
PARCELNINJA (PTY) LTD 135
PICK N PAY STORES LTD 137
QUENCH DELIVERY (PTY) LTD 141
SHOPIFY INC 142
SHOPLI (PTY) LTD 144
SHOPRITE HOLDINGS LTD 145
SPAR GROUP LTD (THE) 150
SPOILER TAGS (PTY) LTD 156
TAKEALOT ONLINE (RF) (PTY) LTD 157
TRUWORTHS INTERNATIONAL LTD 161
UBER TECHNOLOGIES INC 166
WOOLWORTHS HOLDINGS LTD 169
WOOTWARE COMPUTERS (PTY) LTD 173
YUPPIECHEF ONLINE (PTY) LTD 175
ZARA RETAIL SOUTH AFRICA (PTY) LTD 177