According to research by World Wide Worx, even though online shipping started in South Africa in 1996, it is estimated to reach only 1% of total local retail sales in 2016, writes GARETH VAN ZYL.
Online shopping in South Africa was birthed in 1996, but e-commerce is only forecast to reach 1% of total local retail sales in 2016.
This is according to the managing director of research company World Wide Worx, Arthur Goldstuck, who was speaking at an event hosted by digital marketing initiative Heavy Chef in Johannesburg on Wednesday night.
Goldstuck said that local e-commerce sales are set to top R9bn in 2016.
This is expected to be 1.03% of total retail sales in the country in that year, a milestone for SA’s e-commerce space.
Goldstuck further said that online retail is expected to grow 26% year-on-year in 2015 to reach a market size of R7.5bn. The country’s total retail market size is forecast to be R807bn this year.
“For now things look great from a point of view of growth rate, but at the same time in terms of what it represents of the overall retail space, you have to understand that online retail is still in baby’s shoes,” Goldstuck told the audience.
Goldstuck noted that overall retail growth in SA has average around 7% per year, close to the global figure of 6%. However, he said that inflation eats into total retail sales and that the traditional brick and mortar market still has a stronghold over the online sales space.
“And that’s the backdrop of the online retail scene, because online retail is always going to be a subset of traditional retail,” he said.
Nevertheless, growing local internet user numbers, which are forecast to surpass 18 million this year, along with smartphone usage topping 23.5 million in 2015 are among factors driving greater local e-commerce adoption.
Unpacking the country’s e-commerce figures further, Goldstuck said the total number of online shoppers in SA at the end of 2014 amounted to 3.225 million.
He added that 60.8% of those ready to e-shop are doing so. Meanwhile, online shoppers aged 25-34 make up the biggest percentage of e-buyers at 16.3% followed closely by those aged 35-44 (15.6%).
Goldstuck also said that males make up 14.5% of e-commerce purchases in SA and females 13.1%. Couples that are married or living together are 13.2% of the local online buying population while those who are divorced or separate are the biggest segment of e-buyers at 18.9%.
Among the biggest categories of online purchases by adults are music and videos (3.6%), business purchases (3.6%), gifts (2.8%), clothing (2.6%) and software (2.4%).
Concluding his talk, Goldstuck said there are three essential rules that e-tailers in SA and the rest of Africa need to consider.
“Number one, the segmentation is more important online than offline,” said Goldstuck.
“It’s more important online because every user has a different motive and different fear when they go online,” he said, highlighting that fears still exist regarding the security of shopping on the internet.
The other two key points are that conversion is key.
“So, you have 5.2 million people that are ready to shop but only 3.2 million are actually shopping.
“And the third one, finally, confidence is actually the currency of online retail. And if you don’t instill confidence in your shopper, you’re actually undermining a key value of your own currency,” said Goldstuck.
Data journalism takes top prize in revamped awards
The entries to the 2018 Vodacom Journalist of the Year Awards were extraordinarily varied and of an excellent standard, with new categories introduced which are based on content as opposed to platforms. This year, the judges decided that two entries were equally worthy of the coveted Vodacom Journalist of the Year Award.
The first co-winning entry, in the new Data Journalism category, is a set of stories by Alastair Otter and Laura Grant of Media Hack which showed how Data Journalism is shaping the future. The second co-winning entrant is Bongani Fuzile of the Daily Dispatch for his articles in the investigative category on how migrant workers were being ripped off by pension deductions (full citations below).
Convenor of the judging panel Ryland Fisher says: “This year we modernised the 12 categories that journalists could enter their work in and the change was embraced by entrants. In a turbulent time for media, the 2018 entries once again proved that there are excellent South African journalists delivering praiseworthy work, and we commend them for finding new and innovative ways to cover the news.”
Takalani Netshitenzhe, Chief Officer for Corporate Affairs at the Vodacom Group, says: “Vodacom is proud of its 17-year association with these prestigious awards, which make an important contribution to our society through the recognition of journalistic excellence. I’d like to congratulate all of tonight’s winners and, as always, I’d like to pay tribute to our hardworking judges. Ryland Fisher, Mathatha Tsedu, Arthur Goldstuck, Collin Nxumalo, Elna Rossouw, Patricia McCracken, Megan Rusi, Mary Papayya, Albe Grobbelaar and Obed Zilwa: thank you for making these awards a continued success.”
Veteran journalist and media stalwart Ms Amina Frense is the winner of the 2018 Vodacom Journalist of the Year Lifetime Achiever Award. She has spent decades in mainstream media both locally and internationally. She is a former Managing Editor: News and Current Affairs at the SA Broadcasting Corporation. She has worked in many countries abroad as a producer and a foreign correspondent, has written two books and is also a founding member of SANEF where she still serves as a council member (full citation below).
The overall winners share the R100 000 main prize. National winners in the various categories are as follows, with each winner taking home R10 000:
The entries in this category were of an exceptionally high standard. One entrant stood out and became the unanimous winner. This journalist showed an exceptional skill for story-telling and for finding unexpected angles and unknown facts. For his stories about Musangwe’s fight for recognition, Age cheating in SA football, and Hansie Cronje revisited, the winner is Ronald Masinda, and the team of Gift Kganyago, Nceba Ntlanganiso and Charles Lombard from eSAT TV.
Cons exploit Telegram ICO
Kaspersky Lab researchers have uncovered dozens of highly convincing fake websites claiming to be investment sites for an initial coin offering (ICO) by the Telegram messaging service. Many of these websites appear to belong to the same group. In one case alone, tens of thousands of US dollars’ worth of cryptocurrency were stolen from victims believing they were investing in ‘Grams’, Telegram’s rumoured new currency. Telegram has not officially confirmed an ICO and has warned people about fraudulent investor sites.
In late 2017, stories started to circulate that the Telegram messaging service was launching an initial coin offering (ICO) to finance a blockchain platform based on its TON (Telegram Open Network) technology. Unverified technical documentation was posted online, but there appears to have been no confirmation from Telegram itself. The resulting confusion seems to have allowed fraudsters to capitalise on investor interest by creating fake sites and stealing vast sums of money.
Kaspersky Lab researchers have discovered dozens of such sites, possibly belonging to the same group, claiming to sell tokens for ‘Grams’ and inviting investors to pay with cryptocurrencies including Bitcoin, Ethereum, lice litecoin, dash and Bitcoin dash. A record of transactions on one site revealed that the scammers were able to steal at least $35,000 US dollars’ worth of Ethereum from investors.
The researchers found that some of the websites were so convincing that even after Telegram and others began to issue warnings, they were still able to recruit potential investors. Most use a secure connection, require registration and generate a unique online wallet for each new victim, making it harder to track the money.
Judging by the content of the fake websites, it appears they may have common ownership. For example, several have the exactly the same ‘Our Team’ section.
“ICOs are a fairly risky investment and many people don’t yet fully understand how they work, so it is not surprising that high quality fake websites, with seemingly reassuring features such as a secure connection and registration are successful at luring people in. People wishing to invest in an ICO would do well to check with the company behind it and make sure they know exactly who they are giving their money to, or they may never see it again,” said Nadezhda Demidova, Lead Web-Content Analyst, Kaspersky Lab.
Kaspersky Lab offers the following advice for users considering investing in an ICO:
- Check for warning signs: for example, some of the fake Telegram ICO websites had the same wrong image next to the name of Telegram’s Chief Product Officer.
- Do your homework: always check with the brand’s official site to verify the legitimacy of the investment site and, if necessary contact the company’s ICO teams before investing any money or currency.
- Use reliable security solutions such as Kaspersky Internet Security and Kaspersky Internet Security for Android, which will warn you if you try to visit fake internet pages.