Net shop­ping is boom­ing

CityPress - - Business - JUSTIN BROWN justin.brown@city­

South African on­line spend­ing was set to con­tinue grow­ing in strong dou­ble dig­its this year and next year, Efi Da­han, Pay­Pal’s re­gional di­rec­tor for Is­rael and Africa, said this week.

This com­pared with western Europe, where growth was in the sin­gle dig­its, he said.

To­tal lo­cal on­line spend was ex­pected to reach R46 bil­lion this year – up 24% from last year.

Next year, do­mes­tic on­line spend is set to climb by 17% to R54 bil­lion, ac­cord­ing to Pay­Pal and re­search spe­cial­ist Ip­sos’ third an­nual cross-bor­der com­merce re­port.

Lo­cal mo­bile spend­ing is pro­jected to rise by 48% this year to R14.2 bil­lion, while, next year, mo­bile spend is fore­cast to reach R21.4 bil­lion – up 51%.

Da­han said that the sur­vey didn’t de­ter­mine how many lo­cal in­ter­net shop­pers there were.

How­ever, the sur­vey es­ti­mated that 1.4 mil­lion South Africans were ex­pected to shop in­ter­na­tion­ally this year, and they were fore­cast to spend R8.8 bil­lion.

Cross-bor­der shop­pers from South Africa are mak­ing pur­chases mostly from the US. China and the UK are the sec­ond and third most pop­u­lar on­line sales coun­tries, re­spec­tively.

The sur­vey found that 58% of South African adults with an on­line pres­ence shopped in the past 12 months. The re­port also found that 53% of re­spon­dents to the sur­vey planned to in­crease their on­line spend­ing in the next 12 months.

The rea­sons for the planned in­crease in on­line spend­ing in­clude the fol­low­ing: the con­ve­nience of shop­ping on­line; a way to save money; a change in dis­pos­able in­come; and the ex­pec­ta­tion that ship­ping will be­come faster and cheaper.

The most pop­u­lar on­line cat­e­gories for South African con­sumers are down­load­able dig­i­tal en­ter­tain­ment and ed­u­ca­tion items, event tick­ets, as well as ap­parel or footwear.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.