Advertise with fastmoving.co.za
 
 

Retail sales in South Africa are expected to reach R20 billion in 2020 on the back of a surge in online sales of apparels, alcohol and tobacco products.
Retail sales in South Africa are expected to reach R20 billion in 2020 on the back of a surge in online sales of apparels, alcohol and tobacco products.

Alcohol, clothes set to boost online retail sales to R20bn

ECONOMIC NEWS

By Kabelo Khumalo - Feb 1st, 08:37

Retail sales in South Africa are expected to reach R20 billion in 2020 on the back of a surge in online sales of apparels, alcohol and tobacco products. 

A study by World Wide Worx for the next three years, from 2018 to 2020, show online retail sales more than doubling from 2016, to almost R20-billion, a year sooner than originally forecast in 2016.

The study shows apparel remains the fastest growing sector in online retail in South Africa, followed by “general” category.

“Unsurprisingly, a fast-growing category is alcohol, tobacco and vaping. The increased online supply of vapes, juices and accessories suggest that the SA smoking bans, and the change in the legal status of marijuana during the survey, may have boosted consumption,” World Wide Worx says. David Morobe, regional general manager at Business Partners Limited says that small medium enterprises (SME’s) with wholesale/retail operations made up the largest non-financial sector in South Africa.

“With this in mind, as the country moves further into the Fourth Industrial Revolution and access to the internet continues to increase, business owners should start planning now for when the e-commerce industry booms,” says Morobe.

He says that SMEs should consider when planning to start or implement an e-commerce platform for their businesses:

This includes build and run a professional platform; create content; consider new roles in the company such as hiring a web manager, social media and content team. He also says small businesses should ensure a secure payment option and shipping strategy and ensure consumers privacy.

“As the country is still rolling out infrastructure to increase access to internet as well as working towards lowering the cost of data, there is room for a retailer to have both options to ensure that they are reaching the highest number of customers as possible,” says Morobe.



IOL 

Related News

6 Steps to successful customer relationship management
22/04/2019 - 10:26
Six steps to sprucing up your CRM and captivating customers at every touch point along the way.

9 safety tips to help curb cash crimes in SA's stores
22/04/2019 - 10:03
Retailers must accept that cash crime is prevalent in SA and not going away any time soon, says Richard Phillips, joint CEO of retail cash management company Cash Connect.

Retail sales beat expectations in February
19/04/2019 - 12:39
SA shoppers spent more than expected in February, with retail sales growing 1.1% year on year, led by expenditure in the textiles, footwear and clothing sector.

Chicken prices may spike by up to 32% due to tariff increases, says importers
18/04/2019 - 09:22
Increasing tariffs on imported poultry products could hike chicken prices by up to 32%, says consumer bodies and importers and exporters organisation.

Asian revenue surpasses European for first time at L’Oreal
18/04/2019 - 09:07
L’Oreal got more revenue from Asia than from Western Europe for the first time last quarter as the region’s surging demand for luxury products continued to resist the drag of a slower Chinese economy.