Insights into the growth of South African ecommerce profiling payment methods, target audiences, marketing, social media, economy and logistics
Economy
South Africa is home to 58 million people, with a total GDP of US$351 billion. Continued economic growth in South Africa has resulted in it now being classed as an Upper Middle Income economy. Although GDP per capita is low at US$5,443 international retailers should focus on the rising middle class that reside predominantly in urbanized areas. 13.7% of the population is classed as middle class, with almost 15% of the population classed as middle class and above.
Digital User Insights
There are currently 24.7 million ecommerce users in South Africa, with 9 million additional users set to shop online by 2025.
Product Categories
Total ecommerce revenue across all product categories is US$4.6 billion, expected to reach US$6.3 billion by 2025. Fashion is currently the leading product category, accounting for more than double the amount of revenue produced by any other category, at US$1.4 billion.
By 2025, Fashion will still lead, valued at US$2.1 billion, with Toys, Hobby and DIY second at US$1.6 billion.
Logistics
South Africa is ranked 33rd in the world by the World Bank for logistics.. The overall population is becoming steadily more urbanized, with 67% of South Africans currently residing in the country’s biggest cities.
Preferred Online Payments
39% of online payments are made via credit/debit card, with the usage of card type split 50:50. Ewallets are the most popular alternative payment type, accounting for 20% of online payments in South Africa.
Where does South Africa buy from?
South Africa imports from China (US$16.1 billion), Germany (US$9.85 billion), United States (US$5.44 billion), India (US$4.18 billion), and Saudi Arabia (US$3.69 billion).
Internet and Device Usage
Internet penetration in South Africa is currently at 60%, and should reach 65% by 2025. Smartphone penetration is 60%.
Marketing
Marketing spend in South Africa has grown in recent years, with television accounting for almost 1.5 billion USD of total marketing spend. Digital has seen a steady increase in market spend, with radio growing steeply to reach 500 million USD market spend.
Social Media
South Africa’s social media usage continues to shift, with users spread across a number of different platforms. Whatsapp and Facebook are the most commonly used networks, while GooglePlus, LinkedIn, Pinterest, Instagram and Twitter all show that at least 10% of the population logs on.
For more market insights, check out the ESW series of blogs covering a range of emerging eCommerce markets.
*Insights derived from ESW data, Statista, WorldBank, OECD and other industry sources.
