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.
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 CartOnline Retail in South Africa 2020-08-17
R 1 900.00(ZAR) estimated $101.46 (USD)*
View Report Add to CartTable 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 |
