Online SA retailer, kalahari.com has experienced growth of 87% in new shopper numbers this festive season, compared to the same period in 2010.
“And there are still six days left of the festive season splurge.”
Online shopping is booming in SA as more and more shoppers opt for the convenience of purchasing their gifts over the Internet, says CEO Gary Novitzkas.
“We are surprised, yet thrilled, to have such a staggering number of shoppers who are visiting kalahari.com ahead of the official rush period of the festive season.”
The company says the retail sector experiences a natural seasonal surge in sales at this time of year; but this year, the online shopping industry as a whole is growing, giving the retail industry a boost.
“It is encouraging to see such an increase and that the newly registered community on our Web site is purchasing as well,” says Novitzkas.
He adds that the company predicts a 30% increase in revenue over the holiday period.
Biggest buys
The three top-selling books for the festive season on kalahari.com are My Journey / My Reis by Victor Matfield; 7 Dae by Deon Meyer; and Steve Jobs: The Exclusive Biography by Walter Isaacson.
The top three DVDs are Controlled Chaos by Jeff Dunham; Harry Potter and the Deathly Hallows Part 2; and Cars 2.
The gobii 7" Colour LCD eReader + R160 eBook Voucher bundle; the DSTV Mobile Walka Handheld TV; and the Kodak P76 7” Digital Photo Frame are the top three electronic gadgets being sold on the site.
2013 surge
Analysts and e-tailers alike are of the opinion that this year's festive season will see little deviation from the trend of a consumerism shift in favour of virtual procurement.
Liz Hillock, head of marketing at kalahari.com, says that, while South Africans may still feel the effects of the recession, compelling reasons - including competitive prices and door-to-door delivery - preserve the online shopper's presence.
Similarly, Jaco Jonker, CEO of SA's largest online marketplace, bidorbuy, says the company expects over a million people per month to visit its site to browse for gifts and related products during the festive season.
“Even though growth in general retail spend looks rather bleak, we expect year-on-year growth in excess of 30%.”
Kim Reid, CEO of e-tailer Takealot, says the popularity and rapid growth of online shopping can be attributed to the fact that it allows the customer to research the product and then make an informed buying decision.
World Wide Worx MD Arthur Goldstuck says a significant surge is expected in online activity by 2013.
“The critical period for people starting to invest in online activity is five years. Since the initial surge in Internet users came in 2008, we extrapolate that in two years' time, a spike in online buying will be at hand.
“Even as traditional retail sales fell in 2009, in response to the worldwide recession, global online retail sales grew by 14.5% in 2009, to $348.6 billion. The biggest contributor was electronics, making up about 22.6% of the market.”
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