Online shopping is growing in popularity in South Africa, but it still only makes up about 1.3% of the total retail market in the country.
The lack of scale, argues Takealot, means that South African online retailers cannot compete successfully against the local brick and mortar shops and foreign companies such as Amazon and Alibaba.
To overcome the challenge of scale, Takealot is planning to join forces with Kalahari to “create a platform of scale”.
Through this scale, and becoming more competitive, Takealot wants to move the local market closer to developed markets like the US where online retail accounts for as much as 14% of total retail of consumer goods.
While online retailers provide South Africans with convenience, it is not always cheaper to purchase products over the Internet.
MyBroadband selected a few popular gadgets and compared the prices of these items on Takealot, Kalahari, and major “brick and mortar” retailers.
|Online shopping versus “brick and mortar” prices|
|Samsung Galaxy Tab 4 7.0||R3,298||R3,299||R3,599||R4,700|
|Hisense 40″ 3D LED TV||R4,889||R4,899||R4,799||R4,999|
|Seagate 2.5″ External Hard Drive – 1TB||R1,025||R799||R1,149||R1,500|
|Microsoft Office 365||R729||R734||R699||R800|