Four South African retailers are leading the share of the e-commerce market, according to a Boston Consulting Group report.
The report showed that the top four retailers that are leading the e-commerce market share including: Takealot.com, Checkers, Woolworths and Superbalist.com.
Here is a closer look at the share of the e-commerce market that these four retailers hold.
Takealot.com holds between 15 to 20% of the e-commerce market share, while Checkers holds 12-15% of the e-commerce market share. Woolworths holds around 8 to 10% of the e-commerce market share and Superbalist.com round ups the top four with 5 to 6% of the e-commerce market share.
On the other hand, Pick n Pay, Bash (Foschini), Makro, Zando, Mr Price, Incredible, Truworths, Amazon, Builders, HomeChoice, Exclusive Books, Dell, Sportsman Warehouses, Shein, Temu and others hold 45 to 55% of the e-commerce market share.
South African consumers
According to the report, South African consumers are choosing to spend on essentials with groceries has seeing a minor uptick in recent years, on the other hand discretionary spending on items like apparel, home goods, and electronics has declined.
Over the next five years, consumer resilience will face ongoing difficulties, with economists expecting a modest 2% annual real GDP growth.
A recent BCG survey found that around 20% of consumers are less optimistic than they were two years ago with 80% reporting stagnant or declining household incomes, and close to 20% plan to increase their loans. While the period after the election has brought a slight rise in optimism, there has been an increasing reliance from consumers on credit.
The report said that amidst this challenging retail landscape, e-commerce offers consumers a silver lining.
E-commerce has grown by over 30% annually over the past five years which can be attributed to Covid-19 as well as favourable regulations such as stricter data privacy laws and service improvements.
The digital survey by BCG has shown that one in every three South Africans with internet access has shopped online in the past 12 months, a trend that is only on the rise.
The relatively small SA e-commerce industry, which accounts for 5% to 7% of the retail market, is expected to boom above 20% annual growth rate over the next five years, according to market estimates.
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