Gen Z is expected to drive a boom in online shopping
|Published
Johannesburg – “Brands that haven’t figured out how to reach consumers in the online space better catch up fast, or they will be left behind and lose out on this massive opportunity heading our way”, says South African social media expert Magriet Groenewald.
Groenewald’s prediction may well prove to be true. The likes of e-commerce giants such as Amazon are expected to stake their claim in the South African market in the near future.
Amazon’s entry will undoubtedly impact the margins of local small businesses and take a large chunk of the market share when it comes to online sales.
On the positive end of the scale, Amazon’s foray into South Africa will open up opportunities for local entrepreneurs. The Sellers Marketplace will be part of Amazon’s roll-out in South Africa. This will allow South African businesses to have their products uploaded onto one of the biggest global marketplaces.
In 2020, South Africa saw a 66% growth in e-commerce. And as it stands, a study done by Deloitte found that more than 70% of South Africans are shopping online.
Another factor that could see a boom in the online retail market is the impending takeover of buying power by Gen Z.
“Our generation is the last generation that grew up with one foot in the ‘before computers era’ and the other in the fast-growing and ever-evolving online space. Our children grew up with online technology and it is normal for them to rather buy online than to visit a brick-and-mortar store to make a purchase.
“The shift to online retail is real, and it is going to explode in the next few years. The reason is that Gen Z’s and those after them will have buying power in the future. We can already see a massive increase in online sales, so it is already happening.”
Groenewald points to how many major retailers who traditionally only had brick-and-mortar stores have transitioned to making their offerings readily available online.
The Checkers Sixty60 app, which allows consumers to buy groceries online, is one example of how retail giants are responding to the growing demand for online shopping.
“A lot of the big retailers all over the world have also identified this trend and have already made some huge changes in their approach to tap into this new opportunity. We have to be ready for them otherwise we are going to miss the train,” warns Groenewald.
She urges business owners and entrepreneurs to establish or improve their online presence so that they are able to benefit from the expected wave of online users looking to exploit the convenience of online shopping.
Businesses may still have quite a bit of time to ready themselves. According to Reuters, although South African online sales have tripled over the last two years they still on make up 5 percent of the total.
Groenewald offers some tips on how businesses can ensure that they are ready for the influx of online users in the future.
– Make sure your social media profiles are set up correctly.
– Be clear about who your ideal client is, where they hang out and what language they speak.
– Know exactly what you have to offer your customers.
– Be clear on what problems/pain points they you are solving with your product or service.
– Be clear about your brand and what it stands for.
– Serve your followers and give them value.
“If you miss one of the above or do not have perfect clarity on it, you have a problem and you will not be doing nearly as good with your social media marketing as someone that has all the boxes ticked and has that clarity,” says Groenewald.
“Social media is all about giving value to your followers and when you get that right, you are well on your way to creating an engaging account that will eventually lead to more sales of your product or service,” she concludes.
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