Online Beauty and Personal Care Products Market Report 2018

This report studies the Online Beauty and Personal Care Products market. Online Beauty and Personal Care Products refers to Beauty and Personal Care Products sold through the online store.

The worldwide market for Online Beauty and Personal Care Products is expected to grow at a CAGR of roughly 19.5% over the next five years, will reach 74800 million US$ in 2023, from 25700 million US$ in 2017. consumers prefer shopping online at discounted rates and therefore increasingly adopt online shopping. Hair conditioners, hair styling gels,bath gels,and shower products are the commonly purchased beauty and personal care products online. Additionally, the wide range of products available on online platforms and the time-saving aspect of the medium are factors that have contributed to the rise of the online retail phenomenon. E-retailers offer better security features for online payments, customer-friendly services, easy-to-navigate shopping websites, and easy delivery, due to which the number of consumers using online shopping portals is anticipated to increase significantly in the next few years.

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The cosmetics industry is on the path to omni-channel integration, and the online channel will be transformed from a pure sales channel to a brand promotion platform: On the one hand, the online traffic effect is much greater than offline, and efficient brand promotion can be achieved and can be generated with consumers. Effective interaction. On the other hand, e-commerce channel can generate a large amount of customer behavior data, which is of great value for all aspects of the cosmetics industry chain, including the development of marketing strategies for offline channels, supply chain response, user relationship management, and new product development. In the long run, companies with strong control of channels and companies with supply chain integration capabilities will have more competitive advantages.

Source: hitechnewsdaily.com

South African Online e-commerce up by 25%

TEN of South Africa’s most visited online retailers are based in Cape Town. AP
Cape Town – The city is leading the e-commerce space in South Africa with 10 of the most visited online retailers based in the City.

Online retail is big business and is due to surpass the R14 billion mark by the end of the year as e-commerce goes mainstream. This was the key finding from the Online Retail in South Africa 2019 study by technology research organisation World Wide Worx.

Head of World Wide Worx Arthur Goldstuck presented the findings this week and said online retail represented 1.4% of South Africa’s total retail spend.

He said the growth for 2018, which represents 25% growth over 2017, comes as a surprise, given predictions that online retail growth would slow down to below 20% by 2018.

“Forecasts have been beaten as a result of massive investments in online retail, aggressive marketing and the rapid uptake of new shopping channels like mobile shopping and Instagram,” he said.

According to Goldstuck, there will be an increase in sales during the Black Friday event on November 23 when retailers offer large discounts on products.

“Will Black Friday increase that growth? No, it’s factored into that 25% growth, but there is expectation that Black Friday this year is going to see a massive increase compared to previous years’ spend and the weekend that follows that day. We’ll see a massive spike in online shopping,” said Goldstuck.

Last year, retailers saw an average increase of 624% in consumer activity on Black Friday compared to an ordinary day.

The forecasts by World Wide Worx from 2018 to 2020 show online retail sales more than doubling from 2016 to almost R20bn.

Online retailers in South Africa still make up a small proportion of overall retail, but for the first time there will be a broader range of businesses in terms of category, size, turnover and employee numbers.

Goldstuck said lack of reinvestment of profits by online retailers into their businesses was a hindrance of growth but did cite an example of good investment.

“Takealot had R1bn pumped into the business for online retail. That has to make a massive difference and it is propelling them to become by far the largest retail company in the country, but has also contributed to the increase in the growth rate.”

Yuppiechef are considered the “pioneers of e-commerce” in South Africa and won the e-commerce retailer of the year award from 2010 to 2015, and 2018.

Co-founder Andrew Smith said while online growth was encouraging, e-commerce in South Africa was difficult.

“We’re embracing opening stores.

“It’s difficult to grow online in South Africa, and while we’ve done well and grown every year, there are people who want to shop with us and don’t want to go online.

“It is hard to make profit online. I have not encountered many online retailers that are making profit,” said Smith. He said having a physical shop was still beneficial because of South Africa’s “mall culture”.

“We like going to a mall because it’s a lifestyle thing where you take your family on a Saturday and do your shopping, have something to eat and go to the movies.”

Brad Elliott, chief executive of digital company Platinum Seed, said Africa had the potential to use e-commerce to its advantage.

“The Nigerian company Jumia is Africa’s first unicorn – a unicorn is a company with a valuation of over a billion dollars.

They were the first to offer a cash-on-delivery option. That works great in Africa, because most countries don’t have a formal banking sector,” he said.

@WeekendArgus

Source: wknews@inl.co.za and www.iol.co.za

Five eCommerce Online Businesses to start in 2019

Marketplaces, e-commerce sites and classifieds will all gain momentum in 2019

This, according to Silvertree Internet Holdings Co-founder and MD, Manuel Koser. Having invested in and grown a number of highly successful South African brands, Silvertree’s management team sees several business opportunities set to grow exponentially over the coming decade.

Business opportunities in 2019:

Indigenous and ethical: personal and home care products:

2019 sees growing potential for personal care products – ‘Those with local and indigenous ingredients, ethical sourcing which is kind to nature and the body,’ Koser explains. ‘There is a lot of room to play in the African haircare market particularly, as it’s often overlooked by the major FMCG companies.’

The Silvertree MD also sees increasing room for innovative natural home cleaners as consumers become increasingly environmentally conscious. ‘Until now, it was all about the well-known cleaning products the major chemical manufacturers put on the shelves. Now, there’s increasing space for new, exciting entrants.’

New beverages

‘Locally-sourced ingredients and an earth-first mindset will also play an increasing role in the consumer beverage market. Add to this the fact that major soft drink manufacturers will struggle to produce drinks for increasingly health-conscious consumers. They’re often just not quick enough to adjust to changing consumer tastes – particularly the tastes of millennials. Think less about a standard fizzy drink, but rather one that’s kind to the body, with natural ingredients. Non-alcoholic: water plus, say, cucumber, or another indigenous ingredient. The market for this will grow.’

Ethical snacking

Plant-based, vegan, ancient grains, ethical, protein-rich snacks – these are just some of the trends Koser sees dominating in the snack segment in 2019 and beyond. It’s about unique, tasty, functional foods that cater to the modern, time-starved consumer, Koser explains.

Buy, sell and compare online

In the technology space, marketplaces, e-commerce sites and classifieds will all gain momentum in 2019 and beyond. This encompasses aggregators as well as more unusual online businesses, which are increasingly able to find and reach consumers interested in niche products and services.

‘Consider an online ice-cream business. Once, something like that would have been unthinkable,’ Koser explains. ‘But as consumers demand greater choice, room for niche products like this grows.’

Yet, dabble online and seamless execution and delivery become make-or-break factors. ‘Many South African consumers use services such as Google, Amazon, Uber and Spotify daily – world-class products that function on a global scale. You can call an Uber and wait for just two minutes before getting a ride,’ Koser explains. ‘It’s quick and totally seamless. Consumers have come to expect that level of service across the board. Aligned to this is the fact that the millennial wave is currently hitting Cape Town right now, and Joburg secondarily, meaning a number of opportunities are opening up. Go after products and services in the right space and consumers will follow.’

Reinvent the wheel – and make it better

The final type of business entrepreneurs should keep an eye on is those that currently have low Net Promoter Scores. ‘This means that very few people like them, or the services they provide are of very poor quality,’ Koser explains. ‘Think of postal service providers or telecoms companies. With any monopolistic or oligopolistic structures, the service is often terrible because the heavyweights hold so much power. There’s a huge gap here.’

An allied approach for entrepreneurs is to assess opportunities for automation, or cutting out the middleman with technology. ‘Once, many markets – such as real estate were opaque, meaning you needed a middleman to help you transact. However, as the capabilities of technology have grown, markets have become far more transparent – making it easier for buyers to match with sellers safely. Today, a lot of this is easy to automate services – think about connecting a homeowner to a prospective renter through a digital solution where renters can be qualified, for example, in terms of their finances, personal information and criminal records. Quick and simple. And no middleman.’

The biggest opportunities here centre around where consumers spend the greatest amounts of time and money, Koser notes. ‘Housing and rent are always major costs. In terms of where consumers spend their time, on the other hand, much of it is, on a mobile phone, or PC.’

However, entrepreneurial success is never down to anyone magic formula, Koser emphasises. Nor does Silvertree invest in prospective entrepreneurs solely on the basis of the product or service they offer. ‘It’s about passion, perseverance and tenacity as much as it is about the quality of the product.’

Silvertree Internet Holdings is an investment growth partner who aims to understand, grow and scale business, consumer and digital brands to unlock the brands’ exponential growth.

Source: www.iol.co.za

Online Retail in South Africa 2019

The “Online Retail in South Africa 2019” report:

Local online retail goes mainstream and is set to pass the R14-billion mark this year, marking 1.4% of total retail

Online retail in South Africa is due to pass the R14-billion mark in 2018 as e-commerce begins to go mainstream. This is a key finding of the Online Retail in South Africa 2019 study.

The 2018 figure, which represents 25% growth over 2017, comes as a surprise, given predictions that online retail growth would slow down to below 20% by 2018.

Forecasts have been beaten as a result of massive investments in online retail, aggressive marketing, and the rapid uptake of new shopping channels like mobile shopping and Instagram.

Further, most established online retailers have enhanced their digital presence, and refined their fulfilment models, while many traditional retailers are starting to see significant growth in their online offerings. It is not unusual to see growth rates of between 25% and 50% reported by individual online retailers, with slightly more tempered expectations for 2019 and 2020.

Key online shopping highlights:

Online Retail Growth Speeds Up
Growth in Apparel Accelerates
China Rules Global Online Retail
Customer Centricity Wins

Source: www.businesswire.com

Waiting time for online deliveries to arrive in South Africa

Online tracking tool, Narratiive, has released its South African eCommerce report for 2018. The data is based on a survey of 7,909 South Africans between July and August 2018, with respondents asked questions focusing on their online purchasing frequency, their most commonly purchased products, and what stops them from shopping online.

The data showed that online shopping continues on an upward trend in the country, with 44% of offline shopper survey respondents saying that they anticipate making an online purchase in the next 12 months. In addition, 73% of online shoppers say that they’ve either maintained or increased their online shopping habit in the last 12 months.

What people are buying

The report found that books (10%), travel tickets (10%) and tickets for shows and sporting events (9%) were some of the most frequently bought items in the last 12 months.

Other popular purchases include:

  • Clothes and accessories – 7%
    Hotel reservations – 7%
    DVDs, videos, and music (including CD, K7, MP3’s) – 6%
    Health and beauty products – 5%
    Software – 5%

When asked how much they spent on their last purchase, 22% said that they spent between R200 – R499, while 19% said that they spent between R500 – R999 and R1000 – R2999 respectively.

Deliveries

When asked how long it took for their last purchase to be delivered:

  • 27% said between 3-5 working days
    27% said that their delivery was instant
    21% said between 1-2 working days
    15% waited for longer than 10 days
    10% said between 5-10 working days

While some consumers indicated that they were unsatisfied with these delivery times, the majority said that they were ‘very satisfied’ (61%) or ‘fairly satisfied’ (24%).

Part of this satisfaction is likely to stem from the fact that 58% of these customers were charged no fee for this delivery, while just 14% were charged a fee of R50 or more

Source: https://businesstech.co.za

How eCommerce Startups Can Grow Exponentially

There is a general conception in South Africa that TV campaigns can only be used by big brands wanting to embark on expensive brand building campaigns.

Businesses in South Africa have a natural tendency to look to online media for their marketing as it is measurable. But online marketing can soon hit a plateau in terms of reach and generating returns. When this happens, it often makes sense to branch into offline media that can deliver a broader audience and higher reach. A general concern for businesses is how to measure ROI on the higher budgets needed for television. With the technological advances of attribution software, this is now possible in South Africa – allowing digital businesses to optimise TV campaigns on key KPIs, just like with online marketing.

The groundwork for a successful performance TV campaign begins long before booking your media. Here are some important factors to consider:

Defining your TV strategy and your goals. You need to identify your relevant target group. Understand the key drivers that will motivate them to take action (buying that product through your e-commerce shop). This will allow you to shape the messaging for your TV commercial creative.

Aligning your marketing channels. TV is only one piece of your overall marketing strategy. Online marketing plays a big role in capturing the new demand you are creating through your TV campaign. Not all new users will be coming to your website directly through your URL – some will be searching for keywords around your product. Make sure that your AdWords campaign are up and running and reflecting keywords used in your ad.

Performance thinking is an approach that DCMN applies to all our campaigns (test, learn, scale). The results of the Travelstart campaign prove that digital businesses can be just as ROI-driven with their offline marketing as they are with their online channels.

Businesses wanting to discover more about how performance TV works and how to get even more out of their TV budgets, can download a white paper containing knowledge from years of running TV campaigns for some of the fastest-growing digital brands in the world.

Source: By Irina Herf, General Manager of DCMN South Africa