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SA online classifieds cash in on electronics

Paula Gilbert
By Paula Gilbert, ITWeb telecoms editor.
Johannesburg, 03 Jul 2015
Country manager Stephen Ballot says OLX is seeing a surge in trading of electronic goods as consumers choose online classifieds to trade in older models before an upgrade.
Country manager Stephen Ballot says OLX is seeing a surge in trading of electronic goods as consumers choose online classifieds to trade in older models before an upgrade.

South Africa's online classifieds are seeing a surge in sales of electronic goods. With electronic upgrades and new releases coming to market at an increasingly rapid pace, online classifieds have become consumers' go-to platform for tech-related purchases. This is even more evident when new products launch and consumers trade in their old tech for a new and improved model.

Online classifieds platform OLX saw a 40% increase in laptop, notebook and computer listings for January to May 2015, when compared to the same period last year. OLX country manager, Stephen Ballot, says the increase is largely due to the release of new devices onto the market. Ballot says the recent launch of the new Apple MacBook Pro with retina display saw a significant spike in listings of older laptop and notebook models on OLX.

OLX saw the demand for MacBooks rise by over 190% this year, while Dell and Lenovo listings increased 73% and 37% over the same period respectively. "Consumers need a channel to sell their older models to upgrade, and online classifieds have become the preferred option for many due to the reach, mobile growth and the fact that they are free,'' says Ballot.

eBay-owned classifieds site Gumtree South Africa says electronics is its fourth most important category in terms of traffic, drawing over 30 500 unique browsers to the site per day. Gumtree SA head of marketing, Claire Cobbledick, says the site's electronics section accounts for around 11% of total visitors to the site and is responsible for close to 30 000 listings per month.

Cobbledick says there is definitely a hunger for South Africans to get online and Gumtree has seen "an increase in the demand for fast desktop PCs and laptops that can be used for heavy-duty programming or graphic design work, not just leisure". She believes this correlates strongly with the fact that Gumtree has hundreds of freelance Web designers, photographers and graphic designers advertising on the site. She says these professionals are looking for hardware "that can act as a reliable workhorse and not just a fun distraction".

Shopping portals for new electronic goods continue to remain competitive as well. Declan Hollywood, chief marketing officer at takealot.com, says electronics have always been a key driver for the business and it expects things to continue along that trend.

Price comparison Web site PriceCheck's head of marketing, Christine da Silva, says electronics searches are consistently in its top three performing categories, making up around 15-20% of all searches.

iPad losing shine

What's the next 'must have'?

Predictions for the next electronic trends:
PriceCheck: Wearable tech like the iWatch, Samsung Gear, Fitbit and other lifestyle devices.
Gumtree: Wearable tech as well as portable power banks to keep gadgets charged during load-shedding.
Takealot.com: The CloudGate Circle, a device that turns any flat screen into a smart TV and also acts as an Android computer if hooked up to a monitor.

Android tablets are expanding their dominance in the market as cash-strapped consumers opt for lower-end devices when buying a tablet. Da Silva says "tablets and phablets are still incredibly popular and we see more searches on these than for laptops".

She adds Android is trumping iOS in searches, with the top brand query being Samsung followed by Lenovo, with Apple falling into third place. Hollywood says Android accounts for about 80% of takealot.com tablet sales, with the rest being split between iOS- and Windows-based tablets.

Second-hand tablet sales are seeing the same trend. OLX says the sale of Android-based tablets has increased by over 26% in recent months. Gumtree has also seen a decline in iPads being listed. The Apple device used to be dominant on the site but Cobbledick says there are now equal amounts of Samsung devices being listed compared to iPads, with entry-level Asus tablets also taking up a share. She says consumers are responding positively to the variety offered by Samsung.

"Apple only has a handful of models of the iPad and iPhone, whereas Samsung has been experimenting with a variety of models, sizes, and devices."

Price point is also key, with the Korean company's low-end, entry-level devices appealing to tech-savvy South Africans who cannot afford the pricier iPad.

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