The evolution of the omnichannel shopper, who uses a combination of brick-and-mortar and online channels, is a massive opportunity for brands, and poses a dangerous risk if ignored. The opportunity lies in the data.
Historically, manufacturers have relied on traditional data, such as point of sale data, to measure value generation across the supply chain to achieve brand success. However, with the pervasiveness of the internet and ecommerce, manufacturers now have the potential to source additional online data including, but not limited to search data, ecommerce product listings, blogs, and social media. Framed by the right questions, this data can be integrated with existing traditional data to measure and draw valuable tactical and strategic insights at each customer touchpoint.
While the ecommerce channel in South Africa is relatively small compared to other more developed countries, the opportunity is enormous and a rapidly growing channel. According to an Accenture report released in August this year, SA online sales are expected to grow almost three times (19% p.a.) as fast as in-store sales (6% p.a.) in the period 2018 to 2023:
- eCommerce makes up only 1.4% of South Africa’s retail industry yet in the United States and China it is closer to 20% (World-Wide Worx, 14 May 2020).
- South African ecommerce revenue saw a 24% growth in 2020 due to the pandemic (Statista, 25 August 2020).
With 40% of South African consumers planning to increase their online purchases post Covid-19 (McKinsey, August 2020), it is essential that manufacturers consider the ecommerce opportunity.
Download full report HERE
For more information on taking control of your eCommerce data strategy contact DataOrbis