Changing retail habits in South Africa with online shopping

Omnichannel/E-commerce

After two years of the COVID-19 pandemic, omnichannel strategies have become essential for brick-and-mortar stores to meet consumers’ needs in South Africa. The NielsenIQ study “ Unlocking the Consumption Code” concluded that the consumer goods industry in the country is more open to digital shopping than ever before.

Massive disruption fed habit changes

The pandemic has completely changed day-to-day routines. According to our study, 30% of South African consumers indicated they have shifted their shopping habits from in-person grocery store visits to online in the previous 12 months.

Fast delivery and innovative platforms for a high-level shopping experience are seen as the key factors in this journey, with several popular apps accelerating this change in the market.

Adjusting to a new environment

The next steps in South African e-commerce shopping can be referred to as a period of continuity of growth, where retailers and brands need to understand and plan wisely on how to develop and create a unique experience for consumers. Above all, they should prioritize customer satisfaction, convenience (including fast delivery), and availability.

In a nutshell, more conscious consumers are here to stay for more reliable conditions, including physical risks. However, the constrained consumers phenomena is on the rise, as it lets consumers watch how and where they spend their money. At the end of this experience, they can better manage their household spending by making purchases more frequently online.

Retailers should also consider creating different omnichannel experiences, which offers a secure environment and supports reliability while creating price advantages and promotion opportunities.

As consumers rebase their home, work, and travel routines, they will increase their visits to physical stores. For strong competition, e-retailers should watch their service speed, structured on-time and safe delivery, and present a differentiated shopper experience.

Digital shopping allows for sophisticated practices and dynamic pricing. In a world where new players/brands come into the market every day, keywords or various promo strategies may not be enough to win the competition in the future.

Opportunities in South Africa

South African consumer habits have changed forever in the past few years. They feel more comfortable while they shop online. On the other hand, the main growth in this market comes from having omnichannel solutions (online and in-store shopping hybrid), so now is the right time to measure the correct potential in the market and expand possibilities for growth.