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love is the latest thing to go digital
love is the latest thing to go digital
Mark Elliott, division president for Mastercard, South Africa.
Mark Elliott, division president for Mastercard, South Africa.

SA shoppers feel the love on Valentine's Day

RETAILER NEWS

IT-Online - Feb 14th 2017, 23:04

South African shoppers feel the love on Valentine’s Day, spending more than ever on the romantic day of the year. 

The annual Mastercard Love Index, created by analysing credit, debit and prepaid card transactions over a three-year period, has revealed that sentimental spending in South Africa has increased by 41% since 2014. And while the majority of present purchases still happen in person, love is the latest thing to go digital – with a 57% increase in the number of e-commerce transactions in the country from Valentine’s Day 2014 to Valentine’s Day 2016.

Data showed the majority of Valentine’s purchases globally happen during a last-minute dash on 13 February, with 47,4-million transactions that day alone over the past three years.
Recent years have shown that the stomach is increasingly the way to a lover’s heart, with spending in restaurants soaring by 71% in South Africa since 2014.

“While the way we say I love you might have changed in recent years, showing someone you care on 14 February is more popular than ever,” says Mark Elliott, division president for Mastercard, South Africa. “The Mastercard Love Index highlights key global and regional trends to hopefully offer retailers some priceless insight into how customers want to spend the most romantic day of the year.”

The study, which looked at shopper behaviour in more than 20 territories around the globe, identified some other purchasing trends.

Among these is that the personal touch still matters. Despite the continued growth of online, 95% of transactions around Valentine’s Day are still made in person.

The personal touch still matters: Despite the continued growth of online, 95% of transactions around Valentine’s Day are still made in person.
Latin America showed the biggest shift to online, with an increase of 250% from 2014 to 2016, followed by the Middle East and Africa with a 56% increase.

Shoppers in the Middle East and Africa tend to spend most of their Valentine’s Day budget on hotels/motels (43%) followed by jewellery (22%), while flower sales picked up 30% over the three-year period.

REGIONAL TRENDS

Asia Pacific
-Most money is spent on hotels / motels during the Valentine’s period – 37%, an increase of 33% since 2014
-85% of their Valentine’s Day purchases are done in person, however, online sales have increased by 81% in the last three years

Canada
-Choose to spend the most on restaurants and eating out during Valentine’s Day period – 34%
-59% of their spending happens in person (the lowest amount across all regions)

Europe
-Most of their Valentine’s Day spending goes to hotels / motels – 35%, an increase of 50% in three years
-Europeans lead the way in terms of spending online compared to other regions, 19% of their Valentine’s Day spending is done on e-commerce sites
-Biggest area of growth in Europe was in restaurants, up by 67% during the Valentine’s Day period in three years

Latin America
-Biggest growth in terms of online spending, up by 250% in three years
-Bucked the trend in terms of flowers, seeing massive growth of 271% between 2014-2016
-Saw the biggest growth in terms of splashing out on jewellery – up by 66%

USA
-Love spending their money on food, 44% goes to restaurants and has seen the biggest growth across all regions since 2014-up by 130%
-90% of their purchasing still takes place in person
-Spending on hotels / motels was also up by 57% over the three-year period on Valentine’s Day

Middle East and Africa
-Spend most of their Valentine’s Day budget on hotels / motels (43%) followed by jewellery (22%)
-Conduct three quarters (75%) of their purchases in person
-Also bucked the trend in terms of flower sales, up by 22% over the three year period
IT-Online 

Read more about: valentines day | trends | retail | ecommerce |

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