The SA consumer and the digital divide
We conducted a survey and held focus groups which had a sample population of 62 which cut across the Living Standards
Measure range (50% below R300k p.a and 50% above). In order to understand current shopping orientation, their level
of adoption of online retail, the perceptions and opinions regarding online and to identify any commonalities. Our findings
highlighted the following:
People across all the LSM groups and across age, sex and race boundaries are adopting online retail in some
form and measure. In many cases they were not even cognisant of the fact that they were.
A high percentage (39%) transacts using their mobiles, slightly more than those who only use their PC’s.
With the mobile purchases, airtime, ring tones, music and other mobile related products are popular.
One of the most popular areas of spend (57%) was with airline tickets and event tickets, while hotel bookings
ranked at 47%. This was most prevalent above the income level of R300k per annum.
Groceries and apparel had the least optimistic response with many citing a lack of knowledge.
The general consensus (85%) was that their experience was satisfactory, but with concern over security and
privacy is shown by only 57% indicating comfort in this area.
When asking our focus groups for suggestions for the future, they said:
They wanted to see more price comparison services available through online.
They cited the need for more effective delivery services for goods.
They also suggested that a focus on responsiveness to consumer complaints would go a long way towards
developing trust. Together with this the need for more clarity and education on the benefits and the
mechanics of online would also provide confidence.
Research findings
E-commerce is growing in South Africa. All our research shows retailers are responding to the consumer demand for an
online presence. In our interviews we met with Executives who were passionate about e-tailing:
Those who were aware of its importance and exploring possible strategies
Those that thought a presence for information was sufficient10
Those who thought it was not significant in SA.
We conducted a survey and held focus groups which had a sample population of 62 which cut across the Living Standards
Measure range (50% below R300k p.a and 50% above). In order to understand current shopping orientation, their level
of adoption of online retail, the perceptions and opinions regarding online and to identify any commonalities. Our findings
highlighted the following:
People across all the LSM groups and across age, sex and race boundaries are adopting online retail in some
form and measure. In many cases they were not even cognisant of the fact that they were.
A high percentage (39%) transacts using their mobiles, slightly more than those who only use their PC’s.
With the mobile purchases, airtime, ring tones, music and other mobile related products are popular.
One of the most popular areas of spend (57%) was with airline tickets and event tickets, while hotel bookings
ranked at 47%. This was most prevalent above the income level of R300k per annum.
Groceries and apparel had the least optimistic response with many citing a lack of knowledge.
The general consensus (85%) was that their experience was satisfactory, but with concern over security and
privacy is shown by only 57% indicating comfort in this area.
When asking our focus groups for suggestions for the future, they said:
They wanted to see more price comparison services available through online.
They cited the need for more effective delivery services for goods.
They also suggested that a focus on responsiveness to consumer complaints would go a long way towards
developing trust. Together with this the need for more clarity and education on the benefits and the
mechanics of online would also provide confidence.
Research findings
E-commerce is growing in South Africa. All our research shows retailers are responding to the consumer demand for an
online presence. In our interviews we met with Executives who were passionate about e-tailing:
Those who were aware of its importance and exploring possible strategies
Those that thought a presence for information was sufficient10
Those who thought it was not significant in SA.
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