E-COMMERCE INDUSTRY REPORT JUNE 2016

Transcription

1 E-COMMERCE INDUSTRY REPORT JUNE 2016

2 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. 48% are years old. Both men and women shop online. Respondents live in Gauteng, KZN and the W Cape. 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. 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. 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. , 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. Source: Effective Measure, December 2015-March 2016 PAGE 1

3 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. Travel tickets and books were the items most online shoppers purchased last. 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. 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. Purchase discounts is the overriding incentive which would motivate online shoppers to do online shopping with a card. 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 R Saving time, access to product reviews, special offers and price comparisons are the four main reasons online shoppers like to shop online. Source: Effective Measure, December 2015-March 2016 PAGE 2

4 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 age category vs. 48% of the EM survey being 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. 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% of the EM online 1 shopper base. 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. Source: Effective Measure, December 2015-March 2016 PAGE 3

5 KEY INSIGHTS What about those who do not shop online? Respondents tend to be female. 50% are respondents are younger. 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. Their children tend to be younger with 42% having children aged 0-10 years. 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. 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. A smaller proportion of people are very similar to people who are at ease with computers, cell phones and new technology at 39%. 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. Guaranteed returns (35%) is the overriding assurance that would make them feel more comfortable shopping online. 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. Source: Effective Measure, December 2015-March 2016 PAGE 4

6 DEMOGRAPHICS Source: Effective Measure, December 2015-March 2016 PAGE 5

7 DEMOGRAPHICS AGE 18.31% % % % % % % % % % % AMPS year olds represent 55% of online shoppers % % The AMPS data skews younger with 47% falling into the age range. 7.95% EM 15.48% year olds represent 48% of online shoppers % % % % % % % Source: Effective Measure, December 2015-March 2016 PAGE 6

8 DEMOGRAPHICS GENDER 54.45% Male 48.62% Female AMPS AMPS online shoppers are predominantly male. EM Both men and women shop online % Female 51.38% Male Source: Effective Measure, December 2015-March 2016 PAGE 7

9 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. AMPS 48% of AMPS online shoppers reside in Gauteng while 11% reside in the Western Cape and 13% in Natal. 5.98% Eastern Cape 5.61% Eastern Cape 2.74% Free State 3.35% Free State 43.75% Gauteng 48.49% Gauteng 15.31% KZN 12.53% KZN 4.35% Limpopo 6.45% Limpopo 4.70% Mpumalanga 5.34% Mpumalanga 3.51% North West 6.32% North West 0.95% Northern Cape 0.59% Northern Cape 18.73% Western Cape 11.33% Western Cape Source: Effective Measure, December 2015-March 2016 PAGE 8

10 DEMOGRAPHICS HOUSEHOLD INCOME EM AMPS 50% of online shoppers have a household income of R20,000+. 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, % R1 to R2, % R1 to R2, % R3,000 to R5, % R3,000 to R5, % R6,000 to R11, % R6,000 to R11, % R12,000 to R19, % R12,000 to R19, % R20,000 to R29, % R20,000 to R29, % R30,000 to R49, % R30,000 to R49, % R50, % R50, Source: Effective Measure, December 2015-March 2016 PAGE 9

11 DEMOGRAPHICS EDUCATION 10.98% Some High School 12.12% Some High School EM 58% of online shoppers have some form of tertiary qualification % Matric 0.09% No School or Some Primary 30.56% Matric 0.74% No School or Some Primary 25.70% Technikon Diploma or Artisan Certificate 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. Source: Effective Measure, December 2015-March 2016 PAGE 10

12 DEMOGRAPHICS WORK STATUS EM AMPS 64% of online shoppers work full-time. 54% of AMPS online shoppers work full-time. A far larger proportion are students at 17%. 3.76% Student or scholar 17.38% Student or scholar 64.12% Work full-time or self-employed 54.44% Work full-time or self-employed 8.29% Work part-time 6.75% Work part-time 7.90% Retired 3.46% Retired 7.05% Not working 4.79% Not working 8.88% Unemployed 13.18% Unemployed Source: Effective Measure, December 2015-March 2016 PAGE 11

13 DEMOGRAPHICS MARITAL STATUS 8.99% Divorced, widowed or separated 33.54% Single 4.60% Divorced, widowed or separated EM 57% of online shoppers are either married, living togteher or in a partnership. AMPS 51% of AMPS online shoppers are single % Married, living together or partnership 44.40% Married, living together or partnership 51.00% Single Source: Effective Measure, December 2015-March 2016 PAGE 12

14 DEMOGRAPHICS CHILDREN 20% of online shoppers have children aged 4-10 in the home. 21% have no children % 4-10 years old 12.05% 19 years old 10.47% years old 21.44% No Children 9.90% 0-3 years old 9.84% years old Source: Effective Measure, December 2015-March 2016 PAGE 13

15 DEMOGRAPHICS DECISIONS 48% Joint Decision Maker 40% Main Decision Maker 12% Someone Else Source: Effective Measure, December 2015-March 2016 PAGE 14

16 INSIGHTS Source: Effective Measure, December 2015-March 2016 PAGE 15

17 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 Source: Effective Measure, December 2015-March 2016 PAGE 16

18 INSIGHTS TIME SPENT ON MEDIA 9% 5+ hours 14% Under 30 minutes 14% 5+ hours 12% 3-5 hours 29% Under 30 minutes 6% 3-5 hours TV 15% 30 minutes - 1 hour 10% 2-3 hours 20% 1-2 hours Radio 22% 30 minutes - 1 hour 7% Under 30 minutes 23% 2-3 hours 28% 1-2 hours 3% 3-5 hours 6% 2-3 hours 3% 5+ hours 42% Under 30 minutes 26% 5+ hours 12% 30 minutes - 1 hour Internet 22% 1-2 hours 18% 1-2 hours Print 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. 16% 3-5 hours 18% 2-3 hours 29% 30 minutes - 1 hour Source: Effective Measure, December 2015-March 2016 PAGE 17

19 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 Tablet 18% 13% Other Device 1% Unsure 0% Source: Effective Measure, December 2015-March 2016 PAGE 18

20 INSIGHTS SIMILARITY TO THOSE WHO ARE AT EASE WITH NEW TECHNOLOGY 55% 38% 32% 38% 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 Source: Effective Measure, December 2015-March 2016 PAGE 19

21 INSIGHTS ONLINE ACTIVITIES 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 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 Source: Effective Measure, December 2015-March 2016 PAGE 20

22 ONLINE SHOPPING Source: Effective Measure, December 2015-March 2016 PAGE 21

23 SHOPPING FREQUENCY 15% once a year or less 14% at least once a week 30% a couple of times a year 56% are shopping online on a weekly or monthly basis vs. 45% who shop online on a yearly basis. 19% a couple of times a month 23% about once a month Source: Effective Measure, December 2015-March 2016 PAGE 22

24 SHOPPING ITEMS BOUGHT 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 Source: Effective Measure, December 2015-March 2016 PAGE 23

25 SHOPPING PAYMENT PREFERENCES 31% Bank transfers 25% debit card 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 48% of online shoppers prefer to pay by card while 23% would prefer to pay on delivery. 39% Credit card 6% Other 48% prefer to pay by card 59% An on delivery payment option would motivate me 41% An on delivery payment option would not affect me 23% prefer to pay on delivery 59% of online shoppers say that an on delivery payment option would motivate them to do more online purchases. Source: Effective Measure, December 2015-March 2016 PAGE 24

26 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 Source: Effective Measure, December 2015-March 2016 PAGE 25

27 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% Source: Effective Measure, December 2015-March 2016 PAGE 26

28 SHOPPING LAST THING PURCHASED 20% 20% 13% 12% 11% 11% 11% 10% 8% 7% 7% 7% 6% 6% 6% 5% 5% 4% 4% 4% 2% 2% 2% 1% Travel tickets Books Event tickets Clothes and accessories Hotel reservations Other DVDs, videos, or music Software Holiday package Food Health and beauty Flowers and gifts Mass market electronics Digital mobile accesories Computers Toys and games Sports attire Vehicles Video games Household items Hosting services Real estate and property Alcoholic beverages Art Source: Effective Measure, December 2015-March 2016 PAGE 27

29 SHOPPING DELIVERY TIME 29% 3-5 working days to deliver 13% 5-10 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. Very satisfied with speed of delivery 58% Fairly satisfied with speed of delivery 30% 45% 1-2 working days to deliver Neither satisfied nor dissatisfied with speed of delivery Fairly dissatisfied with speed of delivery 6% 3% Very dissatisfied with speed of delivery 3% Source: Effective Measure, December 2015-March 2016 PAGE 28

30 SHOPPING DELIVERY CHARGES 49% Paid for delivery 38% Didn t pay for delivery 13% 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 Source: Effective Measure, December 2015-March 2016 PAGE 29

31 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% Source: Effective Measure, December 2015-March 2016 PAGE 30

32 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 Source: Effective Measure, December 2015-March 2016 PAGE 31

33 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 Source: Effective Measure, December 2015-March 2016 PAGE 32

34 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 Source: Effective Measure, December 2015-March 2016 PAGE 33

35 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 Source: Effective Measure, December 2015-March 2016 PAGE 34

36 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 Source: Effective Measure, December 2015-March 2016 PAGE 35

37 THOSE WHO NEVER SHOP ONLINE Source: Effective Measure, December 2015-March 2016 PAGE 36

38 OFFLINE SHOPPERS GENDER 51.38% Male 52.20% Female ONLINE SHOPPERS 48.62% Female OFFLINE SHOPPERS Women are less likely to be online shoppers % Male Source: Effective Measure, December 2015-March 2016 PAGE 37

39 OFFLINE SHOPPERS AGE 0.34% % % % % % % % % % % ONLINE SHOPPERS 12.70% % % % % % % % % OFFLINE SHOPPERS 50% of those that who do not shop online are years old. This could be attributed to respondents not having yet acquired the financial services often required for online payments % % Source: Effective Measure, December 2015-March 2016 PAGE 38

40 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. OFFLINE SHOPPERS 47% of those that don t shop online reside in Gauteng and 13% reside in the Western Cape. 5.98% Eastern Cape 7.17% Eastern Cape 2.74% Free State 4.49% Free State 43.75% Gauteng 47.27% Gauteng 15.31% KZN 7.64% KZN 4.35% Limpopo 7.34% Limpopo 4.70% Mpumalanga 7.01% Mpumalanga 3.51% North West 4.49% North West 0.95% Northern Cape 1.52% Northern Cape 18.73% Western Cape 13.07% Western Cape Source: Effective Measure, December 2015-March 2016 PAGE 39

41 OFFLINE SHOPPERS INCOME ONLINE SHOPPERS OFFLINE SHOPPERS 50% of online shoppers have a household income of R20,000+. 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, % R1 to R2, % R3,000 to R5, % R3,000 to R5, % R6,000 to R11, % R6,000 to R11, % R12,000 to R19, % R12,000 to R19, % R20,000 to R29, % R20,000 to R29, % R30,000 to R49, % R30,000 to R49, % R50, % R50, % Dependent, no income, or don t work 20.47% Dependent, no income or don t work 4.63% Prefer not to say 8.84% R50, Source: Effective Measure, December 2015-March 2016 PAGE 40

42 OFFLINE SHOPPERS EDUCATION 18.04% Some High School 10.98% Some High School ONLINE SHOPPERS 58% of online shoppers have some form of tertiary qualification % Matric 1.33% No School or Some Primary 30.56% Matric 0.74% No School or Some Primary 10.62% University Degree 24.06% Technikon Diploma or Artisan Certificate 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. Source: Effective Measure, December 2015-March 2016 PAGE 41

43 OFFLINE SHOPPERS WORK STATUS ONLINE SHOPPERS OFFLINE SHOPPERS 64% of online shoppers work full-time. 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. 3.76% Student or scholar 6.05% Student or scholar 64.12% Work full-time or self-employed 42.83% Work full-time or self-employed 8.29% Work part-time 10.62% Work part-time 7.90% Retired 4.75% Retired 7.05% Not working 13.06% Not working 8.88% Unemployed 22.69% Unemployed Source: Effective Measure, December 2015-March 2016 PAGE 42

44 OFFLINE SHOPPERS MARITAL STATUS 8.99% Divorced, widowed or separated 8.07% Divorced, widowed or separated 33.54% Single 53.31% Single ONLINE SHOPPERS OFFLINE SHOPPERS A significantly higher proportion of those who do not shop online are single at 53% % Married, living together or partnership 38.62% Married, living together or partnership Source: Effective Measure, December 2015-March 2016 PAGE 43

45 OFFLINE SHOPPERS CHILDREN 15.54% No Children 12.05% 19 years old 9.90% 0-3 years old 14.34% 0-3 years old ONLINE SHOPPERS 21.44% No Children 20% of online shoppers have children aged 4-10 in the home. 21% have no children. OFFLINE 27.88% 4-10 years old SHOPPERS 9.84% years old Those who do not shop online tend to have younger children, with 42% having children aged 0-10 years % years old 19.65% 4-10 years old 10.47% years old 12.16% years old 13.15% 19 years old Source: Effective Measure, December 2015-March 2016 PAGE 44

46 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 Source: Effective Measure, December 2015-March 2016 PAGE 45

47 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 Source: Effective Measure, December 2015-March 2016 PAGE 46

48 OFFLINE SHOPPERS TIME ON MEDIA Online shoppers Offline shoppers INTERNET RADIO Under 30 minutes 7% 14% Under 30 minutes 29% 29% 30 minutes - 1 hour 12% 18% 30 minutes - 1 hour 22% 18% 1-2 hours 22% 21% 1-2 hours 20% 22% 2-3 hours 18% 17% 2-3 hours 10% 10% 3-5 hours 16% 11% 3-5 hours 6% 6% 5+ hours 26% 19% 5+ hours 14% 15% TV PRINT Under 30 minutes 14% 13% Under 30 minutes 42% 36% 30 minutes - 1 hour 15% 13% 30 minutes - 1 hour 29% 26% 1-2 hours 28% 25% 1-2 hours 18% 23% 2-3 hours 23% 22% 2-3 hours 6% 8% 3-5 hours 12% 13% 3-5 hours 3% 5% 5+ hours 9% 13% 5+ hours 3% 3% Source: Effective Measure, December 2015-March 2016 PAGE 47

49 OFFLINE SHOPPERS INTERNET ACCESS 13% Tablet 1% Don t know 38% Mobile phone 9% Tablet 1% Don t know 2% Other 60% Mobile phone 18% Desktop ONLINE SHOPPERS 14% Desktop OFFLINE SHOPPERS 29% Laptop 14% Laptop Source: Effective Measure, December 2015-March 2016 PAGE 48

50 OFFLINE SHOPPERS SIMILARITY TO THOSE WHO ARE AT EASE WITH NEW TECHNOLOGY 55% 39% 32% 36% 10% 19% 3% 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 Source: Effective Measure, December 2015-March 2016 PAGE 49

51 OFFLINE SHOPPERS ONLINE ACTIVITIES 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% 57% 49% 27% 37% 28% 21% 22% 30% 10% 35% 23% 20% 25% 6% 13% 20% 9% 8% 14% 8% 4% 5% 9% 4% 3% 3% 2% Send/receive 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 Online shoppers Offline shoppers Source: Effective Measure, December 2015-March 2016 PAGE 50

52 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 I do not trust the sites 23% 17% I m afraid the products will not suit me I m not very confident using the Internet Delivery is too expensive 11% 8% 8% I m not sure if I can return the products 7% Long delivery times 4% Products don t interest me 4% Source: Effective Measure, December 2015-March 2016 PAGE 51

53 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 Source: Effective Measure, December 2015-March 2016 PAGE 52

54 OFFLINE SHOPPERS PAYMENT METHOD 10% prefer to pay in-app 5% prefer to pay by other means 2% prefer to pay in-app 8% prefer to pay by other means 29% prefer to pay by card 14% prefer to pay by cash ONLINE SHOPPERS 48% of online shoppers prefer to pay by card and 23% would prefer to pay on delivery. OFFLINE 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% prefer to pay by card 43% prefer to pay by cash 18% prefer to pay on delivery 23% prefer to pay on delivery Source: Effective Measure, December 2015-March 2016 PAGE 53

55 OFFLINE SHOPPERS ASSURANCES 14% Cash 41% Guaranteed returns 35% Cash 35% Guaranteed returns 18% Trust mark 27% Card ONLINE SHOPPERS Guaranteed returns at 41% is the overriding assurance that would make online shoppers feel more comfortable shopping online. OFFLINE SHOPPERS 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. 9% Trust mark 21% Card Source: Effective Measure, December 2015-March 2016 PAGE 54

56 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. Bill payments Holidays and airlines Restaurant and takeaway Music/apps/games Electronics Cinemas and ticketing Gifts Online retailers Automotive Online shoppers Offline shoppers Source: Effective Measure, December 2015-March 2016 PAGE 55

57 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 Source: Effective Measure, December 2015-March 2016 PAGE 56

58 OFFLINE SHOPPERS CARD MOTIVATIONS 25% Shipping discounts 54% Purchase discounts 14% Shipping discounts 38% Purchase discounts ONLINE SHOPPERS OFFLINE SHOPPERS 25% Higher card rewards 34% Loyalty points 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 Source: Effective Measure, December 2015-March 2016 PAGE 57

59 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 Source: Effective Measure, December 2015-March 2016 PAGE 58

60 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 Age Provincal Location Education Level % Eastern Cape 6.20% No school or some primary 1.01% % Free State 3.35% Some high school 14.29% % Gauteng 43.19% Matric 37.78% % KZN 16.03% Technikon diploma/artisan certificate 25.91% % Limpopo 5.41% University degree 21.01% % Mpumalangaga 5.45% % North West 3.76% % Northern Cape 1.15% % Western Cape 15.46% % % Prefer not to say 1.66% Monthly Household Income Work Status Field of Employment R1 - R2, % Student/scholar 3.44% Administrative and managerial 19.88% R3,000 - R5, % Work full-time/self employed 38.58% Agriculture 1.53% R6,000 - R11, % Work part-time 6.69% Artisans related 4.05% R12,000 - R19, % Retired 4.58% Clerical and sales 6.90% R20,000 - R29, % Not working 7.03% Production and mining 3.60% R30,000 - R49, % Unemployed 10.94% Professional and technical 16.99% R50,000 - R69, % Service 7.20% R70, % Transport and communications 5.59% Dependent/no income/don t work 9.65% Not working 12.33% Prefer not to say 35.86% Source: Effective Measure, December 2015-March 2016 PAGE 59

61 ABOUT 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. 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 ABOUT THE IAB SOUTH AFRICA 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 Like them on Facebook or on Twitter. Source: Effective Measure, December 2015-March 2016 PAGE 60