South Africa’s growing population of online shoppers are after boutique-like stores which can satisfy their desires for the latest trends and premium brands.
This insight is provided by Arther Goldstuck, an analyst and managing director of market research firm World Wide Worx, who recently took to iol.co.za to share his views on the transformation of South Africa’s online marketplace.
Mr Goldstuck claimed the growth of experienced online shoppers and maturity of the channel is forcing South African consumers into wanting more out of suppliers. As a result, retailers are now buying products from the US and shipping them over to sell at their own stores.
This has led to the creation of shopping experiences that include the offering of premium brands.
“This is growing and will create online shoppers who like the boutique kind of experience,” he commented.
Wsj.com writer Ty McMahan claims online credit card processing and reliable web hosting are both critical in ensuring all transactions go through, but Mr Goldstruck says logistics represented the most important part of online business in South Africa.
He used the example of Citymob, a premium fashion retailer, which counts on thousands of local and international suppliers to drive its business forward. These range from local jewellery designer students to top brand manufacturers.
This model enables the store to pinpoint emerging trends and trawl through their contact list in order to find the perfect supplier.