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Age, gender influence online spending patterns

Regina Pazvakavambwa
By Regina Pazvakavambwa, ITWeb portals journalist.
Johannesburg, 30 May 2016
If online retailers want to encourage sales they need to place more emphasis on regular online specials, says TFG.
If online retailers want to encourage sales they need to place more emphasis on regular online specials, says TFG.

Age and gender play a significant role in online spending patterns of South Africans, says a recent study conducted by The Foschini Group (TFG).

The study surveyed 10 687 South Africans. Of the respondents, 68% shop online, 32% have never shopped online and about 6.7% have no interest in shopping online.

The most popular categories across gender and age are clothing and accessories at 63% - followed by travel products and services, shoes, airtime/data, homewares, and books, music and movies all above 30%, says the study.

Below the age of 50, both men and women prioritise online clothes shopping, but at 50 travel products and services take the number one spot for both genders, it notes.

Travel goods spending rank fourth for men and women aged 18-24, way below clothing, shoes and airtime, the study finds.

This is because people over 50 years of age are more cash-rich and can afford to travel more than their younger compatriots, says Robyn Cooke, head of TFG e-commerce.

Book shopping online also shows an age bias, being the second most popular category for men and women 50 plus, but not featuring at all in the top five for men aged 18-49, she adds.

Women aged 18-24 also don't prioritise buying books online, with a gradual climb as they age - fifth place (34%) for women aged 25-34, third place (46%) when aged 35-49 and second place (48%) when 50 plus.

Moreover, men and women aged 25 and older prefer credit cards as a payment option, while men aged 18-24 prefer buying on account and women aged 18-24 prefer electronic funds transfer.

"What people buy online is dependent on their stage of life and general preferences, and it is here that we see clear splits along age and gender lines.

"The younger age demographic are fuelled by instant gratification and this automatically drives up online shopping as they seek the convenience of skipping the mall altogether."

All age groups and both genders agree quick free delivery is the number one benefit of shopping online, followed by not having to go to the actual store, continues Cooke.

"Other benefits in descending importance include the opportunity to do online comparisons, stock availability, better variety, product reviews, shopping discreetly and privately, gifting for friends and family far away, product information, sizing and quick and easy returns."

Cooke points out the most popular incentive to encourage spending online relates to price. If online retailers want to encourage sales they need to place more emphasis on regular online specials while broadening the range and improving the quality of their products.

"To convert those who have never shopped online, retailers need to focus their energies on education around the deliveries and returns processes, as well as some clear guidelines on how to pay."

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