Standard Bank sees online fashion sales surge

Standard Bank says online fashion sales have surged almost 80% over the past three years, with 2024 on track to outpace the activity of previous years.

As is the case in many parts of the world, SA consumers remain under pressure in the aftermath of the Covid-19 pandemic, due to a steep rise in inflation and sharp increase in interest rates. Still, the economy has experienced huge growth in e-commerce.

The banking group says South Africans continue to embrace online shopping, particularly in the fashion and apparel category, where local fashion e-tailers and international e-commerce giants are capturing an increasing amount of consumer spend.

According to data from Standard Bank’s credit division, there has been “a significant rise” in so-called card not present (CNP) transactions remote purchases such as online shopping at fashion e-tailers.

The data shows a 79% growth in CNP transactions between 2021 and 2023. In the first quarter of 2024, Standard Bank has seen R125m worth of such transactions, higher than R84.4m by the same time in 2023, R75.8m in 2022 and R30m in 2021. Total online fashion sales through the bank amounted to R453m in 2023.

World Wide Worx data shows SA e-commerce transactions topped R55bn in 2022. The firm found e-commerce experienced explosive growth after the pandemic, especially for groceries and clothing, a big change since products such as consumer electronics dominated online shopping.