South Africa Online Retail Industry 2023: Competition Commission Targets Anti-Competitive Practices

DUBLIN, Nov. 7, 2023 /PRNewswire/ — The “Online Retail in South Africa 2023″ report has been added to  ResearchAndMarkets.com’s offering.

 

South Africa’s online retail sector, which experienced rapid growth during the pandemic, continues to expand, albeit at a slightly slower pace. Online sales saw a 30% increase in 2022, down from the remarkable 40% growth observed in 2021. However, this growth rate remains significantly higher than the 1.7% increase in total retail sales in 2022. The Competition Commission has raised concerns about anti-competitive practices among local online retailers, potentially impacting market dynamics. Additionally, Amazon’s potential entry into the South African e-commerce market and the investigation of Chinese fashion e-commerce platform Shein are contributing to the evolving landscape of online retail in the country.

The online retail sector in South Africa, which saw explosive growth during the COVID-19 pandemic, is still on an upward trajectory. In 2022, online sales in the country increased by 30%, a slightly slower pace compared to the 40% growth observed in 2021. Despite this moderation, online retail continues to outpace the growth of total retail sales, which stood at a mere 1.7% in 2022.

The Competition Commission has identified several anti-competitive practices among local online retailers. These practices include preventing suppliers who use their platforms from offering lower prices for their products on competing platforms and favoring their own products. Such practices could potentially impact market dynamics and consumer choices.

Amazon, a global e-commerce giant, is already present in South Africa through its cloud computing service division, Amazon Web Services. The construction of the new R4.5 billion River Club development in Cape Town, which will house Amazon’s new headquarters, has raised expectations of the company’s entry into the South African e-commerce market. This move could exert pressure on local online retailers and lead to market consolidation.

Chinese fashion e-commerce platform Shein is under investigation due to concerns that it may be exploiting tariff regimes, allowing importers to bring in small quantities of clothing at very low tariffs. This investigation comes in response to criticism both locally and internationally. The influx of Chinese e-commerce logistics and distribution services to South Africa raises questions about compliance with local laws and tax obligations by foreign online retailers, who do not have a physical presence in the country.

This report provides a comprehensive analysis of South Africa’s online retail industry, focusing on major players such as Takealot and traditional retailers expanding their e-commerce capabilities. It covers industry trends, key issues, corporate actions, and influencing factors, including the impact of Black Friday and the challenges of the delivery ecosystem. Additionally, the report features profiles of 47 companies, including leading players like Takealot, international giants such as Alibaba and Amazon, and online-only platforms like Gumtree and Bob Shop.

Report Highlights:

Steady growth in South Africa’s online retail sector, with 30% sales growth in 2022.Concerns raised by the Competition Commission regarding anti-competitive practices among local online retailers.Amazon’s potential entry into the South African e-commerce market and its impact on local competitors.Investigation of Chinese fashion e-commerce platform Shein for potential tariff abuse.Comprehensive coverage of the state of the industry, major sales categories, recent developments, and corporate actions.Profiles of 47 key companies, including major players, international giants, and online-only platforms.

South Africa’s online retail sector continues to demonstrate resilience and growth, with several noteworthy developments shaping its future. As the industry evolves, these dynamics will play a crucial role in determining the trajectory of online retail in the country.

This report examines South Africa’s burgeoning online retail industry, focusing on large online only players like Takealot and the increasing ecommerce capacity of the major traditional retailers. It includes information on the state of the industry, major sales categories, recent developments and trends, corporate actions, and influencing factors such as Black Friday and delivery. There are profiles of 47 companies including major players such as Takealot, international players including Alibaba and Amazon and online only companies such as Gumtree and Bob Shop.

COMPANY PROFILES

Africa Online RetailAlibaba Group HoldingAmazon.comAppetite South AfricaBifrost DistributionBob GroupBolt Services ZABubblestorm ManagementCaught OnlineClicks GroupCotton On South AfricaDis-Chem PharmaciesDreamware TechnologyEvetechFashion United SAFirst Technology IT SuppliersFoschini GroupGumtree South AfricaHomeChoiceJade E-Services South AfricaJD Consumer Electronics and AppliancesMassmart HoldingsMr Price GroupMunyhub Online Ticketing ServicesNaspersNedbankNetFloristOneCartOnedayonly OffersPepkor HoldingsPick n Pay StoresQuench DeliveryRetailabilityShopifyShoprite HoldingsSPAR Group LtdSupper SocietyTakealot Online (RF)Tetra ComputingTruworths InternationalUber TechnologiesVMS Group (Pty)Vodacom GroupWoolworths HoldingsWootware ComputersYuppiechef OnlineZara Retail South Africa

For more information about this report visit https://www.researchandmarkets.com/r/8693ae

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