Online retailers are even more bullish about 2011, with the industry consensus pointing to 40 percent growth this year, representing the highest rate of growth for online retail in South Africa in almost a decade. With the Zimbabwean economy so closely to that of South Africa, it is likely that this trend will cross the border soon if it has not already done so.
World Wide Worx managing director and principal analyst for the survey Arthur Goldstuck said: This dramatic rise in online retail comes in the wake of an ongoing increase in the number of experienced Internet users in South Africa.”
“Last year there were 3.6 million people who had been online for five years or more. By 2015, that figure will be 6.8 million – almost double the potential e-commerce market of today.”
In 2010, physical retail outlets in South Africa reached R561 billion, according to Stats SA, which means online purchases represents less than half a percent of total retail sales, a mere 0.36 percent
However, the growth rate of online retail in South Africa in 2010 was four times physical retail sale growth of 7 percent. Global online retail data analysed in the report found growth had slowed, but never dropped, in most regions during the global financial crisis.
“This shows us that online retail growth represents not a rise in shopping activity, but rather a shift in shopping activity, from the physical space to the online space,” Goldstuck said.
Industry estimates put the total value of global online retail in 2010 in the neighbourhood of about $545 billion, up on the $469 billion figure for 2009.
Post published in: News