E-COMMERCE INDUSTRY REPORT JUNE 2016

E-COMMERCE INDUSTRY REPORT JUNE 2016 KEY FINDINGS Effective Measure surveyed over 12,000 Internet users in South Africa on their online shopping ha...
Author: Steven Grant
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E-COMMERCE INDUSTRY REPORT JUNE 2016

KEY FINDINGS

Effective Measure surveyed over 12,000 Internet users in South Africa on their online shopping habits and uncovered the following key insights:

56% of respondents have shopped online.

38% are accessing the Internet via a mobile phone and 29% access from a work or personal computer. 59% of online shoppers prefer to do their online shopping on a desktop computer or laptop and 27% prefer to use their mobile phone.

48% are 25-44 years old. Both men and women shop online. Respondents live in Gauteng, KZN and the W Cape.

55% are digital natives, being very similar to people who are at ease with computers, cell phones and new technology. 87% are very or quite similar.

50% of respondents have a household income of R20,000+. The respondents are educated, with 58% having a post matric qualification and they are economically active, with over 60% working full-time. 57% are in a relationship or are married, and 20% have children aged 4-10, while 21% have no children. They are joint decision makers with 48% being a joint decision maker and 40% being the main decision maker. 87% accessed the internet yesterday and 26% spend 5+ hours on the Internet on an average day - a significantly higher proportion than those who spend 5+ hours a day on TV, radio or print.

Email, search, banking, social networking, checking the weather and finding directions are the top six activities that online shoppers partake in online. 56% shop weekly or monthly. Books, tickets for events, travel tickets, hotel reservations and DVDs, videos or music are the top five items they purchased via the Internet. 59% say that an “on delivery” payment option would motivate them to do more online purchases.

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 1

KEY FINDINGS

Effective Measure surveyed over 12,000 Internet users in South Africa on their online shopping habits and uncovered the following key insights:

58% of respondents prefer to pay on card and 23% would prefer to pay on delivery. Guaranteed returns at 41% is the overriding assurance that would make them feel most comfortable shopping online. They felt most comfortable doing their first online payment with bill payment merchants and least comfortable with automobile merchants.

72% use price comparison sites. Cheaper or free delivery, a payment method they can trust and an easy return policy are the three most important improvements that would make them shop online even more. Credit cards, bank transfers and debit cards are their preferred method of payment.

Travel tickets and books were the items most online shoppers purchased last.

Purchase discounts is the overriding incentive which would motivate online shoppers to do online shopping with a card.

45% received their online purchases within 1-2 working days. 74% received their purchase within 5 working days. 58% were very satisfied with the speed of delivery.

65% shop online occasionally or only for certain products or services. 60% are happy with the level of online shopping they are doing at the moment.

49% pay for delivery and 38% did not pay any delivery fee. Of those that paid, 58% paid between R200-299. Saving time, access to product reviews, special offers and price comparisons are the four main reasons online shoppers like to shop online.

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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KEY FINDINGS: A COMPARISON TO AMPS DATA

To add a further dimension to the data, where appropriate the EM Online Survey data has been compared to the AMPS data. In order to ensure similar comparable bases, a base filter of “access the Internet ever” and “purchased online via a computer, laptop or mobile phone” were used as the AMPS filters. The key differentiators are:

The AMPS data skews younger with 47% falling in the 20-34 age category vs. 48% of the EM survey being 25-44.

54% of the AMPS online profile work full-time, whereas 64% of the EM respondent base work full-time. AMPS shows a higher proportion of students at 17% vs. only 4% 1 of the EM online shopper base.

There were more male shoppers in the AMPS data at 54% vs. the EM survey at 51% male. AMPS online shoppers are more likely to reside in Gauteng at 48% and fewer reside in W Cape (11%) and KZN (12%). The EM survey results show 44% residing in Gauteng, 19% in W Cape and 15% in KZN. 48% of the AMPS online shopper base have a tertiary qualification and 40% have matric. The EM respondents have a higher education level, with 58% holding a tertiary qualification.

AMPS online shoppers are single at 51%, whereas the majority of EM online shoppers are in a relationship at 57%. 80% of AMPS online shoppers accessed the Internet yesterday. A larger proportion of EM online respondents accessed the Internet yesterday at 87%. EM online shoppers are significantly more inclined to be very similar to people who are at ease with computers, cell phones and new technology at 55%. Only 38% of the AMPS online shopper base is very similar.

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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KEY INSIGHTS

What about those who do not shop online?

Respondents tend to be female.

69% of those who do not shop online describe their attitude as “I’m new to online shopping and still trying to find my way around.”

50% are 20-34 - respondents are younger.

A smaller proportion of people are very similar to people who are at ease with computers, cell phones and new technology at 39%.

47% reside in Gauteng and 13% in the W Cape. Economics is clearly a motivator for not shopping online with 50% having a household income of up to R11,999 and 20% being a dependent, having no income or not working. Far fewer hold a tertiary qualification at 35% vs. 58% of those who do shop online. Fewer work full-time at 43%, compared to 64% of online shoppers. A significantly higher proportion are single.

41% don’t shop online because they are not used to it. 37% say they prefer to touch and feel before purchasing. 53% of those who said they did not trust online payments indicated zero liability or some form of online protection as a motivating factor to engage in more online shopping. 58% say a delivery payment option would motivate them to do more online payments. 43% prefer cash payments and 29% would prefer to pay by card.

Their children tend to be younger with 42% having children aged 0-10 years.

Guaranteed returns (35%) is the overriding assurance that would make them feel more comfortable shopping online.

77% accessed the internet yesterday - the time frame between accessing the Internet is slightly longer. They spend less time online with only 19% spending 5+ hours online on an average day vs. 26% of online shoppers. 60% are accessing the Internet via their mobile device vs. only 38% of online shoppers.

Cheaper or free delivery, a payment method they can trust and shorter delivery times are the three most important improvements that they would like to see. Purchase discounts are the biggest incentive which would motivate them to make online purchases with a card. Loyalty points are attractive to those who currently do not shop online vs. those who do.

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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DEMOGRAPHICS

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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DEMOGRAPHICS AGE 3.94% 55-59 0.34% 15-17 0.66% 18-19

3.00% 15-17

5.81% 18-19

5.16% 50-54 6.58% 20-24

13.42% 20-24

AMPS

8.17% 45-49

18.31% 60+ 11.84% 25-29

25-44 year olds represent 55% of online shoppers.

8.90% 40-44

EM

7.95% 55-59

5.32% 60+

The AMPS data skews younger with 47% falling into the 20-34 age range. 15.48% 25-29

12.70% 30-34

25-44 year olds represent 48% of online shoppers.

12.90% 35-39

17.87% 30-34

8.87% 50-54

11.93% 35-39

9.68% 45-49 11.15% 40-44

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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DEMOGRAPHICS GENDER 54.45% Male

48.62% Female

AMPS

AMPS online shoppers are predominantly male.

EM

Both men and women shop online.

45.55% Female

51.38% Male

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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DEMOGRAPHICS LOCATION EM

Online shoppers reside in the key economic powerhouses with 44% residing in Gauteng, 19% in the Western Cape and 15% in Natal. 5.98% Eastern Cape

AMPS

48% of AMPS online shoppers reside in Gauteng while 11% reside in the Western Cape and 13% in Natal. 5.61% Eastern Cape

2.74% Free State

3.35% Free State

48.49% Gauteng

43.75% Gauteng

15.31% KZN

4.35% Limpopo

12.53% KZN

6.45% Limpopo

4.70% Mpumalanga

5.34% Mpumalanga

6.32% North West

3.51% North West

0.59% Northern Cape

0.95% Northern Cape

18.73% Western Cape

11.33% Western Cape

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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DEMOGRAPHICS HOUSEHOLD INCOME EM

50% of online shoppers have a household income of R20,000+.

8.93% R1 to R2,999

AMPS

The AMPS data shows a higher proportion of online shoppers in the R30,000 - R49,999 household income group at 22%. 56% of the AMPS online shopper base has a household income of R20,000+. 1.78% R1 to R2,999

11.54% R3,000 to R5,999

6.53% R3,000 to R5,999

14.68% R6,000 to R11,999

14.87% R12,000 to R19,999

14.55% R20,000 to R29,999

16.21% R30,000 to R49,999

19.22% R50,000+

17.60% R6,000 to R11,999

18.50% R12,000 to R19,999

14.96% R20,000 to R29,999

22.36% R30,000 to R49,999

18.28% R50,000+

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 9

DEMOGRAPHICS EDUCATION 12.12%

10.98%

Some High School

Some High School

0.09%

EM

No School or Some Primary

39.73%

58% of online shoppers have some form of tertiary qualification.

Matric

25.70%

30.56%

Technikon Diploma or Artisan Certificate

0.74%

Matric

No School or Some Primary

30.19%

University Degree

22.35%

University Degree

27.54%

Technikon Diploma or Artisan Certificate

AMPS

48% of AMPS online shoppers have a tertiary qualification and 40% have a matric.

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 10

DEMOGRAPHICS WORK STATUS EM

AMPS

54% of AMPS online shoppers work full-time. A far larger proportion are students at 17%.

64% of online shoppers work full-time.

3.76% Student or scholar

17.38% Student or scholar

64.12%

8.29% Work part-time

7.90% Retired

7.05% Not working

8.88% Unemployed

Work full-time or self-employed

54.44%

Work full-time or self-employed

6.75% Work part-time

3.46% Retired

4.79% Not working

13.18% Unemployed

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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DEMOGRAPHICS MARITAL STATUS 8.99% Divorced, widowed or separated

4.60% Divorced, widowed or separated

33.54% Single

EM

57% of online shoppers are either married, living togteher or in a partnership.

AMPS

51% of AMPS online shoppers are single.

57.47% Married, living together or partnership

44.40% Married, living together or partnership

51.00% Single

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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DEMOGRAPHICS CHILDREN 20% of online shoppers have children aged 4-10 in the home. 21% have no children.

19.65%

4-10 years old

12.05%

19 years old

10.47%

11-14 years old

21.44%

No Children

9.90%

0-3 years old

9.84%

15-18 years old

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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DEMOGRAPHICS DECISIONS

48%

Joint Decision Maker

40%

Main Decision Maker

12%

Someone Else

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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INSIGHTS

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 15

INSIGHTS LAST INTERNET ACCESS 87%

80%

6%

14%

2%

2%

1%

0%

4%

1%

EM AMPS Yesterday

Past 7 days

Past 4 weeks

4-12 months ago

Longer

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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INSIGHTS TIME SPENT ON MEDIA 9% 5+ hours 14% 5+ hours

14% Under 30 minutes

12% 3 - 5 hours 29% Under 30 minutes

TV

6% 3 - 5 hours

10% 2 - 3 hours

Radio

28% 1 - 2 hours

22% 30 minutes - 1 hour 7% Under 30 minutes

20% 1 - 2 hours

23% 2 - 3 hours

3% 3 - 5 hours

3% 5+ hours

6% 2 - 3 hours

42% Under 30 minutes

12% 30 minutes - 1 hour

26% 5+ hours

Internet 26% of online shoppers spend 5+ hours on an average day accessing the Internet via a PC, mobile device, or tablet - the most time spent across all media.

15% 30 minutes - 1 hour

22% 1 - 2 hours

18% 1 - 2 hours

Print

16% 3 - 5 hours

18% 2 - 3 hours

29% 30 minutes - 1 hour

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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INSIGHTS INTERNET ACCESS

38% access the Internet from their mobile phone and 29% accessed from a work or personal computer. Mobile Phone

38%

Work or Personal Laptop

29%

Desktop Personal Computer

18%

Tablet

13%

Other Device

1%

Unsure

0%

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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INSIGHTS SIMILARITY 55%

38%

32%

38%

TO THOSE WHO ARE AT EASE WITH NEW TECHNOLOGY

10%

14%

3%

6%

The EM survey shows that 55% are digital natives and are very similar to people who are at ease with computers, cell phones and new technology, whereas the AMPS data shows a lower proportion at only 38%. EM AMPS Very similar

Quite similar

Not too similar

Not at all

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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75% 68% 63% 56% 53% 49% 48% 46% 46% 45% 45% 39% 37% 35% 32% 32% 31% 25% 22% 20% 18% 17% 14% 12% 9% 5% 3%

Send/receive email

Search

Banking

Social networking

Checking weather

Use maps

Access articles

Download apps

Travel bookings

Instant messaging

Read newspaper/magazines

Access classifieds

Access listing sites

Entertainment bookings

Stream videos

Music downloads

Online calls

Subscriptions

Play games

Listen to radio

Access auction sites

Stream TV

Other

Podcasts

Share trading

Dating

Gambling

INSIGHTS ONLINE ACTIVITIES

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016 PAGE 20

ONLINE SHOPPING

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 21

SHOPPING FREQUENCY 14% at least once a week

15% once a year or less

30% a couple of times a year

19% a couple of times a month

56% are shopping online on a weekly or monthly basis vs. 45% who shop online on a yearly basis.

23% about once a month

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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29% 28% 28% 22% 22% 19% 16% 16% 14% 12% 12% 10% 9% 9% 9% 8% 7% 7% 7% 7% 5% 3% 3%

Books

Tickets for events

Travel tickets

Hotel reservations

Entertainment items

Software

Holiday packages

Clothes and acccessories

Flowers and gifts

Toys and games

Health and beauty

Computers

Digital mobile accessories

Food

Vehicles

Mass market electronics

Sports attire

Real estate and property

Video games

None

Web hosting services

Alcoholic beverages

Art

SHOPPING ITEMS BOUGHT

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016 PAGE 23

SHOPPING PAYMENT PREFERENCES 25% debit card

31% Bank transfers 5% prefer to pay by other means 10% prefer to pay in-app

Credit cards, bank transfers and debit cards are online shoppers’ preferred methods of payment when shopping online.

9% PayPal

6% Loyalty points

14% prefer to pay by cash

6% Other 39% Credit card

48% of online shoppers prefer to pay by card while 23% would prefer to pay on delivery.

59%

48% prefer to pay by card 23% prefer to pay on delivery

An “on delivery” payment option would motivate me

41%

An “on delivery” payment option would not affect me

59% of online shoppers say that an “on delivery” payment option would motivate them to do more online purchases.

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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SHOPPING ASSURANCES 14% Cash

41% Guaranteed returns

18% Trust mark

Guaranteed returns at 41% is the overriding assurance that would make online shoppers feel more comfortable shopping online.

27% Card

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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SHOPPING ONLINE PAYMENT COMFORT Online shoppers felt more comfortable doing their first online payment with bill payment merchants, holiday and airline, cinemas and ticketing and online retail merchants. Only 7% said they feel most comfortable with automobile merchants. Bill payments

48%

Holidays and airlines

38%

Cinemas and ticketing

32%

Online retailers

27%

Electronics and technology

24%

Music, apps, and games

23%

Restaurant and takeaways

20%

Gifts

18%

Automotive

7%

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 26

Books

Event tickets

Clothes and accessories

Hotel reservations

Other

DVDs, videos, or music

Software

Holiday package

Food

Health and beauty

Flowers and gifts

6% 6% 6% 5% 5% 4% 4% 4% 2% 2% 2% 1%

Art

7%

Alcoholic beverages

7%

Real estate and property

7%

Hosting services

8%

Household items

10%

Video games

11%

Vehicles

11%

Sports attire

11%

Toys and games

12%

Computers

13%

Digital mobile accesories

20%

Mass market electronics

20%

Travel tickets

SHOPPING LAST THING PURCHASED

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016 PAGE 27

SHOPPING DELIVERY TIME 13% 5-10 working days to deliver

29% 3-5 working days to deliver

45% of online shoppers received their online purchase within 1-2 working days. 74% received theirs within 5 working days.

13% 10+ working days to deliver

58% were very satisfied with the speed of delivery.

45% 1-2 working days to deliver

Very satisfied with speed of delivery

58%

Fairly satisfied with speed of delivery

30%

Neither satisfied nor dissatisfied with speed of delivery

6%

Fairly dissatisfied with speed of delivery

3%

Very dissatisfied with speed of delivery

3%

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 28

SHOPPING DELIVERY CHARGES 49%

38%

Paid for delivery

13%

Didn’t pay for delivery

Don’t remember

49% paid for delivery and 38% did not pay any delivery fee.

9%

11%

29%

11%

23%

19%

16%

8%

3%

19%

58% paid between R200 and R299 for the delivery of their online purchase.

Less than R30

R30-R50

R51-R99

R100-R199

R200-R499

R500-R999

R1,000-R2,999

R3,000-R9,999

Over R10,000

Don’t remember

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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SHOPPING MOTIVATIONS Saving time, access to product reviews, special offers and price comparisons are the four main reasons that online shoppers like to shop online. Convenience - time

58%

Access to consumer product reviews

55%

Special offers

42%

Price comparisons

42%

Convenience - location

40%

Choice

29%

Cheaper than physical stores

27%

Other

7%

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 30

SHOPPING PRICE COMPARISON SITES

72%

use price comparison websites

19%

don’t use price comparison websites

8%

are not sure if they use price comparison websites

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 31

SHOPPING IMPROVEMENTS 58%

48%

39%

32%

31%

28%

24%

22%

11%

6%

Cheaper or free delivery, a payment method they can trust and an easy return policy are the three most important improvements that would make them shop online more.

Cheaper or free delivery

A payment method that I can trust

Possibility to return products or easy return process

Shorter delivery times

Loyalty rewards

Easier-to-use websites

Better availability of product information

More information about special offers and promotion or advertising

Better packaging

If more of my friends or family do it

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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SHOPPING CARD MOTIVATIONS 25% Shipping discounts

54% Purchase discounts

Purchase discounts are the overriding incentives which would motivate online shoppers to do online purchases with a card. 25% Higher card rewards

34% Loyalty points

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 33

SHOPPING SHOPPING HABITS 65%

60%

33%

21%

15%

7%

65% of online shoppers shop occassionally or only for certain products or services. 60% are happy with the level of online shopping that they are doing at the moment.

I shop online occasionally or only for certain products and services

I am happy with the level of online shopping I do at the moment

In the near future, I will definitely be shopping online more than I do now

I’m new to online shopping and am still trying to find my way around

I try to buy as much online as I can

I will be shopping online less in the future

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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SHOPPING DEVICE PREFERENCE

59%

prefer to shop using their desktop computer or laptop

27%

prefer to shop using their mobile phone

14%

prefer to shop using their tablet

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 35

THOSE WHO NEVER SHOP ONLINE

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 36

OFFLINE SHOPPERS GENDER 51.38% Male

52.20% Female

ONLINE SHOPPERS 48.62% Female

OFFLINE SHOPPERS Women are less likely to be online shoppers.

47.80% Male

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 37

OFFLINE SHOPPERS AGE 0.34% 15-17 0.66% 18-19 18.31% 60+

6.58% 20-24

0.29% 15-17 8.82% 60+

11.84% 25-29

7.95% 55-59

ONLINE SHOPPERS

4.29% 55-59

19.38% 25-29

12.70% 30-34

OFFLINE SHOPPERS

6.94% 45-49

11.93% 35-39 11.15% 40-44

13.26% 20-24

5.85% 50-54

8.87% 50-54

9.68% 45-49

1.31% 18-19

50% of those that who do not shop online are 20-34 years old. This could be attributed to respondents not having yet acquired the financial services often required for online payments.

9.80% 40-44

12.24% 35-39

17.82% 30-34

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 38

OFFLINE SHOPPERS LOCATION ONLINE SHOPPERS Online shoppers reside in the key economic powerhouses, with 44% residing in Gauteng, 19% in the Western Cape and 15% in Natal. 5.98% Eastern Cape

OFFLINE SHOPPERS 47% of those that don’t shop online reside in Gauteng and 13% reside in the Western Cape. 7.17% Eastern Cape

2.74% Free State

4.49% Free State

47.27% Gauteng

43.75% Gauteng

15.31% KZN

4.35% Limpopo

7.64% KZN

7.34% Limpopo

4.70% Mpumalanga

7.01% Mpumalanga

4.49% North West

3.51% North West

1.52% Northern Cape

0.95% Northern Cape

18.73% Western Cape

13.07% Western Cape

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 39

OFFLINE SHOPPERS INCOME ONLINE SHOPPERS 50% of online shoppers have a household income of R20,000+.

OFFLINE SHOPPERS

Economics is clearly a contributing factor to not shopping online with 50% having a household income of up to R11,999 and 20% being a dependent, having no income or not working.

8.93% R1 to R2,999

15.23% R1 to R2,999

11.54% R3,000 to R5,999

18.29% R3,000 to R5,999

14.68% R6,000 to R11,999

15.38% R6,000 to R11,999

14.87% R12,000 to R19,999

8.50% R12,000 to R19,999

14.55% R20,000 to R29,999

16.21% R30,000 to R49,999

19.22% R50,000+

6.29% R20,000 to R29,999

4.45% R30,000 to R49,999

2.56% R50,000+ 20.47% Dependent, no income or don’t work

3.86% Dependent, no income, or don’t work

4.63% Prefer not to say

8.84% R50,000+

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 40

OFFLINE SHOPPERS EDUCATION 10.98%

Some High School

18.04%

ONLINE SHOPPERS

Some High School

1.33%

No School or Some Primary

58% of online shoppers have some form of tertiary qualification.

45.96% Matric

24.06%

30.56%

Technikon Diploma or Artisan Certificate

0.74%

Matric

No School or Some Primary

10.62%

University Degree

30.19%

University Degree

27.54%

Technikon Diploma or Artisan Certificate

OFFLINE SHOPPERS 46% of those that who do not shop online have a matric. A much lower proportion have a university degree than those who do shop online.

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 41

OFFLINE SHOPPERS WORK STATUS ONLINE SHOPPERS

OFFLINE SHOPPERS

45% work full-time. 36% are unemployed or not working - a significantly higher proportion of those that do shop online. This confirms that economics plays a significant role in respondents not shopping online.

64% of online shoppers work full-time.

3.76% Student or scholar

6.05% Student or scholar

64.12%

8.29% Work part-time

7.90% Retired

7.05% Not working

8.88% Unemployed

Work full-time or self-employed

42.83%

Work full-time or self-employed

10.62% Work part-time

4.75% Retired

13.06% Not working

22.69% Unemployed

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 42

OFFLINE SHOPPERS MARITAL STATUS 8.99% Divorced, widowed or separated

8.07% Divorced, widowed or separated

53.31% Single

33.54% Single

ONLINE SHOPPERS

OFFLINE SHOPPERS A significantly higher proportion of those who do not shop online are single at 53%.

57.47% Married, living together or partnership

38.62% Married, living together or partnership

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 43

OFFLINE SHOPPERS CHILDREN 15.54%

No Children

12.05%

19 years old

14.34%

0-3 years old

9.90%

0-3 years old

ONLINE SHOPPERS 20% of online shoppers have children aged 4-10 in the home. 21% have no children.

OFFLINE SHOPPERS

21.44%

No Children

27.88%

4-10 years old

Those who do not shop online tend to have younger children, with 42% having children aged 0-10 years.

13.71%

11-14 years old

9.84%

15-18 years old

19.65%

4-10 years old

12.16%

10.47%

11-14 years old

15-18 years old

13.15%

19 years old

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

PAGE 44

OFFLINE SHOPPERS DECISIONS ONLINE SHOPPERS 48% are joint decision makers and 40% are the main decision maker.

48%

Joint Decision Maker

40%

Main Decision Maker

12%

Someone Else

OFFLINE SHOPPERS

44% are joint decision makers. 22% indicate someone else as the decision maker. A significantly higher proportion compared to those who shop online.

44%

Joint Decision Maker

33%

Main Decision Maker

22%

Someone Else

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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OFFLINE SHOPPERS LAST ONLINE 87%

77%

6%

12%

2%

4%

1%

2%

4%

5%

Online shoppers Offline shoppers Yesterday

Past 7 days

Past 4 weeks

4-12 months ago

Longer

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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OFFLINE SHOPPERS TIME ON MEDIA INTERNET RADIO 7%

Under 30 minutes

Online shoppers Offline shoppers

Under 30 minutes

14% 12%

30 minutes - 1 hour

29% 22%

30 minutes - 1 hour

18% 22%

1 - 2 hours

18% 20%

1 - 2 hours

21% 18%

2 - 3 hours

22% 10%

2 - 3 hours

17% 16%

3 - 5 hours

10% 6%

3 - 5 hours

11% 26%

5+ hours

6% 5+ hours

19%

TV Under 30 minutes

14%

15%

PRINT Under 30 minutes

28%

30 minutes - 1 hour

23%

1 - 2 hours

12%

2 - 3 hours

9%

6% 8%

3 - 5 hours

13% 5+ hours

18% 23%

22% 3 - 5 hours

29% 26%

25% 2 - 3 hours

42% 36%

13% 1 - 2 hours

14% 15%

13% 30 minutes - 1 hour

29%

3% 5%

5+ hours

13%

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

3% 3%

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OFFLINE SHOPPERS INTERNET ACCESS 13% Tablet

1% Don’t know

9% Tablet

38% Mobile phone

18% Desktop

ONLINE SHOPPERS

1% Don’t know

2% Other 60% Mobile phone

14% Desktop

OFFLINE SHOPPERS

29% Laptop

14% Laptop

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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OFFLINE SHOPPERS SIMILARITY 55%

39%

32%

36%

10%

19%

3%

TO THOSE WHO ARE AT EASE WITH NEW TECHNOLOGY

6%

Comparing against those who do shop online, a significantly lower percentage (39%) of online shoppers are very similar to those who are at ease with computers. A higher proportion at 19%, are not too similar. Online shoppers Offline shoppers Very similar

Quite similar

Not too similar

Not at all

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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9% 5% 3% 3%

Gambling

Dating

75% 68% 63% 56% 53% 49% 48% 46% 46% 45% 45% 39% 37% 35% 32% 32% 31% 25% 22% 20% 18% 17% 14% 12% 57% 49% 27% 37% 28% 21% 22% 30% 10% 35% 23% 20% 25% 6% 13% 20% 9% 8% 14% 8% 4% 5% 9% 4%

Share trading

Podcasts

Other

Stream TV

Access auction sites

Listen to radio

Play games

Subscriptions

Online calls

Music downloads

Stream videos

Entertainment bookings

Access listing sites

Access classifieds

Read newspaper/magazines

Instant messaging

Travel bookings

Download apps

Access articles

Use maps

Checking weather

Social networking

Banking

Search

Send/receive email

OFFLINE SHOPPERS ONLINE ACTIVITIES 3% 2%

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016 Online shoppers

Offline shoppers

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OFFLINE SHOPPERS REASONING The two overriding reasons that respondents do not shop online is that they are not used to it (41%), or they prefer to touch and feel before they buy (37%). Instilling confidence in consumers about the ease of online shopping would most certainly help convert them to online shoppers. I’m just not used to it

41%

I prefer to touch and feel before I buy

37%

I do not trust online payment

23%

I do not trust the sites

17%

I’m afraid the products will not suit me

11%

I’m not very confident using the Internet

8%

Delivery is too expensive

8%

I’m not sure if I can return the products

7%

Long delivery times

4%

Products don’t interest me

4%

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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OFFLINE SHOPPERS MOTIVATIONS 47% No

42% Yes

Out of those offline shoppers who said they did not trust online payments, a small majority of 53% said that zero liability or some other form of online protection would motivate them to purchase online more often.

53% Yes

58% say that an “on delivery” payment option would not motivate them to purchase online more often.

58% No

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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OFFLINE SHOPPERS PAYMENT METHOD 2% prefer to pay in-app

5% prefer to pay by other means

8% prefer to pay by other means

10% prefer to pay in-app

14% prefer to pay by cash

29% prefer to pay by card

OFFLINE SHOPPERS

ONLINE SHOPPERS

43% of those who do not shop online prefer cash payments. 29% would prefer to pay by card compared to 48% of online shoppers. The preference for cash could be due to the younger profile of those who do not shop online and do not have access to credit cards yet.

48% of online shoppers prefer to pay by card and 23% would prefer to pay on delivery.

48% prefer to pay by card

43% prefer to pay by cash

18% prefer to pay on delivery

23% prefer to pay on delivery

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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OFFLINE SHOPPERS ASSURANCES 14% Cash

41% Guaranteed returns 35% Guaranteed returns

35% Cash

ONLINE SHOPPERS

OFFLINE SHOPPERS

Guaranteed returns at 41% is the overriding assurance that would make online shoppers feel more comfortable shopping online.

18% Trust mark

Guaranteed returns at 35% is the overriding assurance that would make offline shoppers feel more comfortable shopping online, along with cash also at 35%. Cash carries a much higher weighting with those that do not shop online compared to those who do. 27% Card 9% Trust mark

21% Card

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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OFFLINE SHOPPERS PAYMENT COMFORT 48%

35%

38%

19%

20%

19%

23%

15%

24%

15%

32%

14%

18%

13%

27%

10%

7%

5%

Both those who shop online and those who do not, feel most comfortable doing their first online payment with bill payment merchants. Those who do not shop online feel significantly less comfortable with online retailers at 10% vs 27% of those who do shop online. Online shoppers Offline shoppers Bill payments

Holidays and airlines

Restaurant and takeaway

Music/apps/games

Electronics

Cinemas and ticketing

Gifts

Online retailers

Automotive

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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OFFLINE SHOPPERS IMPROVEMENTS 58%

52%

48%

47%

32%

33%

28%

31%

39%

29%

32%

14%

22%

23%

24%

23%

6%

16%

11%

15%

Cheaper or free delivery, a payment method they can trust, and shorter delivery times are the three most important improvements that would make those who do not shop online begin to do so. Online shoppers Offline shoppers Cheaper or free delivery

A payment method that I can trust

Shorter delivery times

Easier-to-use websites

Possibility to return products or easy return process

Loyalty rewards

More information about special offers and promotional advertising

Better availability of product information

If more of my friends or family did it

Better packaging

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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OFFLINE SHOPPERS CARD MOTIVATIONS 25% Shipping discounts

54% Purchase discounts

14% Shipping discounts 38% Purchase discounts

ONLINE SHOPPERS 25% Higher card rewards 34% Loyalty points

OFFLINE SHOPPERS 18% Higher card rewards

Purchase discounts are the overriding incentive which would motivate both online and offline shoppers to do online purchases with a card. Loyalty points are of larger significance for those who do not shop online than for those who do.

30% Loyalty points

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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OFFLINE SHOPPERS SHOPPING HABITS 65%

22%

60%

33%

33%

31%

21%

69%

15%

0%

7%

35%

69% of those who do not shop online describe their attitude towards online shopping as, “I’m new to online shopping and am still trying to find my way around.” Online shoppers Offline shoppers I shop online occassionally or only for certain products and services

I am happy with the level of online shopping I do at the moment

In the near future, I will definitely be shopping online more than I do now

I’m new to online shopping and am still trying to find my way around

I try to buy as much online as I can

I will be shopping online less in the future

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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APPENDIX SURVEY DEMOGRAPHICS 13,975 survey responses including 8,246 mobile (59%) and 5,731 desktop (41%) from South Africa. The survey ran between December 2015 and March 2016.

Age 15-17 18-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60+ Prefer not to say

0.31% 0.93% 9.36% 14.90% 14.71% 11.86% 10.38% 8.33% 7.42% 6.24% 13.90% 1.66%

Monthly Household Income R1 - R2,999 R3,000 - R5,999 R6,000 - R11,999 R12,000 - R19,999 R20,000 - R29,999 R30,000 - R49,999 R50,000 - R69,999 R70,000+ Dependent/no income/don’t work Prefer not to say

7.81% 9.64% 9.65% 7.44% 6.61% 6.52% 2.91% 3.92% 9.65% 35.86%

Provincal Location Eastern Cape Free State Gauteng KZN Limpopo Mpumalangaga North West Northern Cape Western Cape

6.20% 3.35% 43.19% 16.03% 5.41% 5.45% 3.76% 1.15% 15.46%

Work Status Student/scholar Work full-time/self employed Work part-time Retired Not working Unemployed

3.44% 38.58% 6.69% 4.58% 7.03% 10.94%

Education Level No school or some primary Some high school Matric Technikon diploma/Artisan certificate University degree

1.01% 14.29% 37.78% 25.91% 21.01%

Field of Employment Administrative and managerial Agriculture Artisans related Clerical and sales Production and mining Professional and technical Service Transport and communications Not working

19.88% 1.53% 4.05% 6.90% 3.60% 16.99% 7.20% 5.59% 12.33%

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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ABOUT ABOUT THE IAB SOUTH AFRICA

ABOUT EFFECTIVE MEASURE Effective Measure is a leading provider of digital audience, brand and advertising effectiveness measurement and targeting solutions, bringing best practice online measurement data to premium publishers, agencies, networks, advertisers and researchers. The EM solutions offer brands, media and agencies invested in Oceania, Europe, Southeast Asia, Middle East North Africa and South Africa, a clear insight into their online audience and the ever-growing Internet population. www.effectivemeasure.com.

ABOUT VISA Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks — VisaNet — that is capable of handling more than 65,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead with prepaid or pay later with credit products. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews.

The Interactive Advertising Bureau South Africa, formerly the DMMA, is an independent, voluntary, non-profit association focused on growing and sustaining a vibrant and profitable digital industry within South Africa. The IAB South Africa represents the digital industry across all sectors including the media, the marketing community, government and the public, and also acts as the channel through which international bodies can enter the South African digital market. The IAB South Africa currently represents over 96 local online publishers and over 93 creative, media and digital agencies, between them accounting for more than 16 million local unique browsers and 440 million page impressions. The IAB South Africa strives to provide members with a platform through which they can engage, interact and address digital issues of common interest, thereby stimulating learning and commerce within the South African digital space. To find out more about the IAB South Africa, visit the website www.dmma.co.za, Like them on Facebook https://www.facebook.com/thedmma or follow @iab_sa on Twitter.

www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016

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