More South Africans are buying groceries online
A new study by MasterCard reveals that South African shoppers are increasingly turning towards the internet to buy their groceries.
The Online Shopping Behaviour Study, published in conjunction with World Wide Worx, noted that South African e-commerce industry is growing as only 24% of local online spend was on foreign shopping sites, down from 27% the previous year and 33% in 2012.
“The products that consumers are buying suggest that online shopping is becoming increasingly mainstream, which also bodes well for local retailers,” said Arthur Goldstuck, MD of World Wide Worx.
“No longer is online shopping confined to books and DVDs, plane tickets and apps.”
The report noted that consumers purchasing groceries (38%), clothing (34%) and personal care (20%) brands online increased by 7%, 8% and 6% respectively, with the number of visits to these sites averaging at two per week.
“The increases are encouraging as shopping for goods in these categories is more complex. Selecting clothing, for example, requires trust in the retailers’ garment and sizing descriptions,” said Goldstuck.
While preference for Kalahari declined somewhat from 47% to 35%, it remains South Africa’s favourite online store.
Local e-tailer Takealot.com enjoyed the greatest increase in consumer preference, as 11% shop most frequently from this store, an increase of 4% from last year’s study.
Safe and secure
Concern around the safety of online transactions was the reason 42% of respondents gave for not shopping online in the last three months – up 4% from last year.
When asked how online shopping could be improved, just over half (53%) of the respondents suggest visible, explicit assurance that their transactions are secure, while 52% recommend ‘protection against unscrupulous websites’.
A further 48% suggest guarantees by financial transaction companies or banks that websites are safe.
Despite this seemingly negative sentiment towards online shopping, over two thirds (69%) of respondents say they have made at least one purchase online in the last three months and a significant 87% of those reported being very or extremely satisfied with their experience.
“Consumers want to shop online but they are still nervous about doing so,” said Philip Panaino, Division President, MasterCard, South Africa.
The annual Online Shopping Behaviour Study was conducted in 11 countries across Africa and the Middle East between November 2013 and January 2014.
The South African study surveyed banked South Africans aged between 18 and 64 who access the Internet at least once a week.
Considering the overall online shopping experience, 90% surveyed are influenced by convenient payment methods, 87% by quickly-completed transactions and 86% will return to a site offering low or no additional delivery chargers.
Pricing, still an important consideration, was mentioned by 89% of respondents last year, compared to 85% in the most recent study.
Costly experience
The number of respondents feeling that online shopping is costly has declined 13% in 2012 to just 9% in 2013, while only 3% find e-commerce sites difficult to navigate.
This, said Goldstuck, further suggests that online retailers are succeeding in making online shopping a compelling alternative to physical stores.
The study found that 33% of those accessing the Internet via mobile phone intend to shop using their device or have already done so, a jump of 9% from 2012.
The most popular items purchased by those who’ve made a purchase using their phone in the last three months include mobile phone apps, music downloads, movie tickets, computer software and coupon/deal site offers.
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