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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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THOSE WHO NEVER SHOP ONLINE
www.effectivemeasure.com Source: Effective Measure, December 2015-March 2016
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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
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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
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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
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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
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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
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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
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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
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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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