The South Africa eCommerce Report April 2016 is brought to you by Visa

E-COMMERCEINDUSTRY REPORT

JUNE 2016

KEY FINDINGS E�ective Measure surveyed over 12,000 Internet users in South Africa on their onlineshopping habits and uncovered the following key insights:

56% of respondents have shopped online.

48% are 25-44 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 newtechnology. 87% are very or quite similar.

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 wouldmotivate them to do more online purchases.

Source: E�ective Measure, December 2015-March 2016 www.e�ectivemeasure.com PAGE 1

KEY FINDINGS E�ective Measure surveyed over 12,000 Internet users in South Africa on their onlineshopping 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 onlineshoppers 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.

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 onlineshoppers like to shop online.

72% use price comparison sites.

Cheaper or free delivery, a payment method they can trust and an easy return policy are the three mostimportant 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 onlineshopping they are doing at the moment.


KEY FINDINGS:A COMPARISONTO AMPS DATA

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

1

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

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 inGauteng 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 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.


KEY INSIGHTS What about those who do not shop online?

Respondents tend to be female.

50% are 20-34 - 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% havingchildren 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.


DEMOGRAPHICS


EM

AMPS

0.34%15-17

0.66%18-19 6.58%

20-24

11.84%25-29

12.70%30-34

11.93% 35-39

11.15% 40-44

9.68% 45-49

8.87% 50-54

7.95% 55-59

18.31% 60+

3.00% 15-17 5.81%

18-19

13.42% 20-24

15.48% 25-29

17.87% 30-34

12.90% 35-39

8.90% 40-44

8.17% 45-49

5.16% 50-54

3.94% 55-59

5.32% 60+

DEMOGRAPHICS AGE

25-44 year oldsrepresent 55% of online shoppers.

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

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


DEMOGRAPHICS GENDER

EMBoth men and women shop online.

48.62% Female

51.38% Male

45.55% Female

54.45% Male

AMPSAMPS online shoppers are predominantly male.


DEMOGRAPHICS LOCATION

AMPSEM5.98% Eastern Cape

2.74% Free State

0.95% Northern Cape

43.75% Gauteng

15.31% KZN

4.35% Limpopo

4.70% Mpumalanga

3.51% North West

18.73% Western Cape

48.49% Gauteng

5.61% Eastern Cape

3.35% Free State

12.53% KZN

6.45% Limpopo

5.34% Mpumalanga

6.32% North West

0.59% Northern Cape

11.33% Western Cape

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

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


DEMOGRAPHICS HOUSEHOLD INCOME

AMPSEM50% 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 R20,000+.

8.93% R1 to R2,999

11.54% 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+

1.78% R1 to R2,999

6.53% R3,000 to R5,999

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+


DEMOGRAPHICS EDUCATION

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

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

30.56%Matric

30.19%University Degree

27.54%Technikon Diploma

or ArtisanCertificate

10.98%Some High School

0.74%No Schoolor SomePrimary

0.09%No Schoolor SomePrimary39.73%

Matric






DEMOGRAPHICS WORK STATUS

AMPSEM64% 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

64.12%

8.29% Work part-time

7.90% Retired

7.05% Not working

8.88% Unemployed


54.44%


3.46% Retired

4.79% Not working

13.18% Unemployed

Work full-time orself-employed



DEMOGRAPHICS MARITAL STATUS

EM57% of online shoppers are either married, living togteher or in a partnership.

AMPS51% of AMPS online shoppers are single.

57.47%Married, living together or partnership

33.54% Single

8.99%Divorced,

widowed or separated

4.60%Divorced, widowed or separated

51.00%Single

44.40%Married, living

together or partnership


DEMOGRAPHICS CHILDREN

20% of online shoppers have children aged4-10 in the home. 21% have no children.

21.44%No Children

19.65%4-10 years old

12.05%19 years old 10.47%

11-14 years old

9.90%0-3 years old



DEMOGRAPHICS DECISIONS

48%Joint Decision Maker

40%Main Decision Maker

12%Someone Else


INSIGHTSINSIGHTS


INSIGHTS LAST INTERNET ACCESS87% 80% 6% 14% 2% 2% 1% 0% 4% 1%

Yesterday Past 7 days Past 4 weeks 4-12 months ago Longer

AMPS

EM


INSIGHTS TIME SPENT ON MEDIA

Radio

29%Under 30 minutes

22%30 minutes - 1 hour

20%1 - 2 hours

10%2 - 3 hours

6%3 - 5 hours

14%5+ hours

15%30 minutes - 1 hourTV

14%Under 30 minutes

28%1 - 2 hours

23%2 - 3 hours

12%3 - 5 hours

9%5+ hours

Internet

7%Under 30 minutes


22%1 - 2 hours

18%2 - 3 hours

16%3 - 5 hours

26%5+ hours

Print

42%Under 30 minutes


18%1 - 2 hours

6%2 - 3 hours

3%3 - 5 hours

3%5+ hours

26% of online shoppers spend5+ hours on an average dayaccessing the Internet via a PC,mobile device, or tablet - themost time spent across all media.


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

Desktop Personal Computer

Tablet

Other Device

Unsure

29%

18%

13%

1%

0%


INSIGHTS SIMILARITY TO THOSE WHO ARE AT EASE WITH NEW TECHNOLOGY

55% 38% 32% 38% 10% 14% 3% 6%

Very similar Quite similar Not too similar Not at all

AMPS

EM

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


INSIGHTS ONLINE ACTIVITIES75% 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

/rec

eive

em

ail

Sear

ch

Bank

ing

Soci

al n

etw

orki

ng

Chec

king

wea

ther

Use

map

s

Acce

ss a

rtic

les

Dow

nloa

d ap

ps

Trav

el b

ooki

ngs

Inst

ant m

essa

ging

Read

new

spap

er/m

agaz

ines

Acce

ss c

lass

i�ed

s

Acce

ss li

stin

g si

tes

Ente

rtai

nmen

t boo

king

s

Stre

am v

ideo

s

Mus

ic d

ownl

oads

Onl

ine

calls

Subs

crip

tions

Play

gam

es

List

en to

radi

o

Acce

ss a

uctio

n si

tes

Stre

am T

V

Oth

er

Podc

asts

Shar

e tr

adin

g

Dat

ing

Gam

blin

g


ONLINE SHOPPING


SHOPPING FREQUENCY

56% are shopping online on a weeklyor monthly basis vs. 45% who shoponline on a yearly basis.

14%at least oncea week

19%a couple oftimes a month

23%about oncea month

30%a couple of

times a year

15%once a year

or less


SHOPPING ITEMS BOUGHT29% 28% 28% 22% 22% 19% 16% 16% 14% 12% 12% 10% 9% 9% 9% 8% 7% 7% 7% 7% 5% 3% 3%

Book

s

Tick

ets

for e

vent

s

Trav

el ti

cket

s

Hot

el re

serv

atio

ns

Ente

rtai

nmen

t ite

ms

Soft

war

e

Hol

iday

pac

kage

s

Clot

hes

and

accc

esso

ries

Flow

ers

and

gift

s

Toys

and

gam

es

Hea

lth a

nd b

eaut

y

Com

pute

rs

Dig

ital m

obile

acc

esso

ries

Food

Vehi

cles

Mas

s m

arke

t ele

ctro

nics

Spor

ts a

ttire

Real

est

ate

and

prop

erty

Vide

o ga

mes

Non

e

Web

hos

ting

serv

ices

Alc

ohol

ic b

ever

ages Art


SHOPPING PAYMENT PREFERENCES

59%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.

48%prefer to payby card

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

23%prefer to payon delivery

14%prefer to pay

by cash

10%prefer to pay

in-app

5%prefer to pay

by other means

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

25%debit card

9%PayPal

6%Loyalty points

6%Other

39%Credit card

31%Bank transfers


SHOPPING ASSURANCES

Guaranteed returns at 41% is the overridingassurance that would make online shoppersfeel more comfortable shopping online.

14%Cash

18%Trust mark

27%Card

41%Guaranteed returns


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

Cinemas and ticketing

Online retailers

Electronics and technology

Music, apps, and games

38%

32%

27%

24%

23%

Restaurant and takeaways

20%

Gifts 18%

Automotive 7%


SHOPPING LAST THING PURCHASED20% 20% 13% 12% 11% 11% 11% 10% 8% 7% 7% 7% 6% 6% 6% 5% 5% 4% 4% 4% 2% 2% 2% 1%

Trav

el ti

cket

s

Book

s

Even

t tic

kets

Clot

hes

and

acce

ssor

ies

Hot

el re

serv

atio

ns

Oth

er

DVD

s, vi

deos

, or m

usic

Soft

war

e

Hol

iday

pac

kage

Food

Hea

lth a

nd b

eaut

y

Flow

ers

and

gift

s

Mas

s m

arke

t ele

ctro

nics

Dig

ital m

obile

acc

esor

ies

Com

pute

rs

Toys

and

gam

es

Spor

ts a

ttire

Vehi

cles

Vide

o ga

mes

Hou

seho

ld it

ems

Hos

ting

serv

ices

Real

est

ate

and

prop

erty

Alc

ohol

ic b

ever

ages Art


SHOPPING DELIVERY TIME

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

29%3-5 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

Neither satisfied nor dissatisfied with speed

of delivery

Fairly dissatisfied with speed of delivery

Very dissatisfied with speed of delivery

30%

6%

3%

3%

13%5-10 working daysto deliver

13%10+ working daysto deliver

45%1-2 working daysto deliver


SHOPPING DELIVERY CHARGES49%

Paid for delivery38%

Didn’t pay for delivery13%

Don’t remember

9% 11% 29% 11% 23% 19% 16% 8% 3% 19%

Less than R30

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

R30-R50 R51-R99 R100-R199 R200-R499 R500-R999 R1,000-R2,999 R3,000-R9,999 Over R10,000 Don’t remember

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


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

Special offers

Price comparisons

Convenience - location

Choice

55%

42%

42%

40%

29%

Cheaper than physical stores

27%

Other 7%


SHOPPING PRICE COMPARISON SITES

72%use price

comparison websites

19%don’t use price

comparison websites

8%are not sure if they

use pricecomparison websites


SHOPPING IMPROVEMENTS58% 48% 39% 32% 31% 28% 24% 22% 11% 6%

Cheaper or freedelivery

A paymentmethod that I

can trust

Possibility toreturn productsor easy return

process

Shorterdelivery times

Loyalty rewards Easier-to-usewebsites

Betteravailability of

productinformation

More informationabout special o�ersand promotion or

advertising

Betterpackaging

If more of myfriends or

family do it

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.


SHOPPING CARD MOTIVATIONS

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

54%Purchase discounts

34%Loyalty points

25%Higher card

rewards

25%Shipping

discounts


SHOPPING SHOPPING HABITS65% 60% 33% 21% 15% 7%

I shop onlineoccasionallyor only for

certain productsand services

I am happywith the level ofonline shopping

I do at themoment

In the nearfuture, I willde�nitely be

shopping onlinemore than I

do now

I’m new toonline shopping

and am stilltrying to �nd my

way around

I try to buyas much online

as I can

I will beshopping online

less in thefuture

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.


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


THOSE WHO NEVERSHOP ONLINE


OFFLINE SHOPPERS GENDER

ONLINESHOPPERS

OFFLINESHOPPERS

51.38%Male

47.80%Male

48.62%Female

52.20%Female

Women are less likely to be online shoppers.


OFFLINE SHOPPERS AGE

ONLINESHOPPERS

0.34% 15-17

0.66% 18-19 6.58%

20-24

11.84% 25-29

12.70% 30-34

11.93% 35-39

11.15% 40-44

9.68% 45-49

8.87% 50-54

7.95% 55-59

18.31% 60+

OFFLINESHOPPERS50% 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.

0.29% 15-17

1.31% 18-19

19.38% 25-29

13.26% 20-24

12.24% 35-39

9.80% 40-44

6.94% 45-49

5.85% 50-54

4.29% 55-59

8.82%60+

17.82% 30-34


OFFLINE SHOPPERS LOCATION

OFFLINE SHOPPERSONLINE SHOPPERS5.98% Eastern Cape

2.74% Free State

0.95% Northern Cape

43.75% Gauteng

15.31% KZN

4.35% Limpopo

4.70% Mpumalanga

3.51% North West

18.73% Western Cape

47.27% Gauteng

7.17% Eastern Cape

4.49% Free State

7.64% KZN

7.34% Limpopo

7.01% Mpumalanga

4.49% North West

1.52% Northern Cape

13.07% Western Cape

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

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


OFFLINE SHOPPERS INCOME

OFFLINE SHOPPERSONLINE SHOPPERS50% 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 R2,999

11.54% 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+

15.23% R1 to R2,999

18.29% R3,000 to R5,999

15.38% R6,000 to R11,999

8.50% R12,000 to R19,999

6.29% R20,000 to R29,999

4.45% R30,000 to R49,999

2.56% R50,000+

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

4.63% Prefer not to say

20.47%

8.84% R50,000+

Dependent, noincome or don’t work


OFFLINE SHOPPERS EDUCATION

ONLINESHOPPERS

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

OFFLINESHOPPERS46% 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.

30.56%Matric







45.96%Matric






OFFLINE SHOPPERS WORK STATUS

OFFLINE SHOPPERSONLINE SHOPPERS64% 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.


64.12%


7.90% Retired

7.05% Not working

8.88% Unemployed


42.83%


4.75% Retired

13.06% Not working

22.69% Unemployed




ONLINESHOPPERS


33.54% Single

8.99%Divorced,


OFFLINE SHOPPERS MARITAL STATUS

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

OFFLINESHOPPERS

53.31% Single

8.07%Divorced,




OFFLINE SHOPPERS CHILDREN

20% of online shoppers have children aged4-10 in the home. 21% have no children.

21.44%No Children


12.05%19 years old

10.47%11-14 years old

9.90%0-3 years old


15.54%No Children


13.15%19 years old

13.71%11-14 years old

14.34%0-3 years old

12.16%15-18 years old

ONLINESHOPPERS

Those who do not shop online tend to have younger children, with 42% having children

aged 0-10 years.

OFFLINESHOPPERS


OFFLINE SHOPPERS DECISIONS



12%Someone Else



22%Someone Else

ONLINE SHOPPERS48% are joint decision makers and 40% are the main decision maker.

OFFLINE SHOPPERS44% are joint decision makers. 22% indicate someone else as the decision maker. A significantly higher proportion compared to those who shop online.


OFFLINE SHOPPERS LAST ONLINE87% 77% 6% 12% 2% 4% 1% 2% 4% 5%

Yesterday Past 7 days Past 4 weeks 4-12 months ago Longer

Offlineshoppers

Onlineshoppers


OFFLINE SHOPPERS TIME ON MEDIA

14%

13%

15%

13%

28%

25%

23%

22%

12%

13%

9%

13%

Under 30 minutes

30 minutes - 1 hour

1 - 2 hours

2 - 3 hours

3 - 5 hours

5+ hours

Offlineshoppers

Onlineshoppers

TV

7%

14%

12%

18%

22%

21%

18%

17%

16%

11%

26%

19%

Under 30 minutes

30 minutes - 1 hour

1 - 2 hours

2 - 3 hours

3 - 5 hours

5+ hours

INTERNET

42%

36%

29%

26%

18%

23%

6%

8%

3%

5%

3%

3%

Under 30 minutes

30 minutes - 1 hour

1 - 2 hours

2 - 3 hours

3 - 5 hours

5+ hours

PRINT

29%

29%

22%

18%

20%

22%

10%

10%

6%

6%

14%

15%

Under 30 minutes

30 minutes - 1 hour

1 - 2 hours

2 - 3 hours

3 - 5 hours

5+ hours

RADIO


OFFLINE SHOPPERS INTERNET ACCESS

ONLINESHOPPERS

OFFLINESHOPPERS

38% Mobile phone

29% Laptop

18% Desktop

13%Tablet

1% Don’t know

60%Mobile phone

14%Laptop

14%Desktop

9%Tablet

1%Don’t know

2%Other


OFFLINE SHOPPERS SIMILARITY TO THOSE WHO ARE AT EASE WITH NEW TECHNOLOGY

55% 39% 32% 36% 10% 19% 3% 6%

Very similar Quite similar Not too similar Not at all

Offline shoppers

Online shoppers

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.


OFFLINE SHOPPERS ONLINE ACTIVITIES75% 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%

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Offlineshoppers

Onlineshoppers

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%


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

I do not trust online payment

I do not trust the sites

I’m afraid the products will not suit me

I’m not very confident using the Internet

37%

23%

17%

11%

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%


OFFLINE SHOPPERS MOTIVATIONS

53%Yes

47%No

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.

58%No

42%Yes

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


OFFLINE SHOPPERS PAYMENT METHOD


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

23%prefer to payon delivery

14%prefer to pay

by cash

10%prefer to pay

in-app

5%prefer to pay

by other means

ONLINESHOPPERS

43% of those who do not shop online prefer cash payments. 29% would prefer to pay by card compared to 48% of online shoppers. Thepreference 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.

OFFLINESHOPPERS


18%prefer to payon delivery43%

prefer to payby cash

2%prefer to pay

in-app

8%prefer to pay

by other means


OFFLINE SHOPPERS ASSURANCES

Guaranteed returns at 41% is the overridingassurance that would make online shoppersfeel more comfortable shopping online.

14%Cash

18%Trust mark

27%Card


ONLINESHOPPERS OFFLINE

SHOPPERSGuaranteed 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.


35%Cash

9%Trust mark

21%Card


OFFLINE SHOPPERS PAYMENT COMFORT

Bill payments Holidays and airlines Restaurant and takeaway Music/apps/games Electronics Cinemas and ticketing Gifts Online retailers Automotive

48% 35% 38% 19% 20% 19% 23% 15% 24% 15% 32% 14% 18% 13% 27% 10% 7% 5%

Offlineshoppers

Onlineshoppers

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.


OFFLINE SHOPPERS IMPROVEMENTS

Cheaper or freedelivery

58% 52% 48% 47% 32% 33% 28% 31% 39% 29% 32% 14% 22% 23% 24% 23% 6% 16% 11% 15%

Offlineshoppers

Onlineshoppers

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.

A payment methodthat I can trust

Shorter deliverytimes

Easier-to-usewebsites

Possibility to returnproducts or easy

return process

Loyalty rewards More informationabout special o�ers

and promotionaladvertising

Better availabilityof product

information

If more of my friendsor family did it

Betterpackaging


OFFLINE SHOPPERS CARD MOTIVATIONS


34%Loyalty points

25%Higher card

rewards

25%Shipping

discounts

ONLINESHOPPERS

OFFLINESHOPPERS


30%Loyalty points

18%Higher card

rewards

14%Shipping

discounts

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.


OFFLINE SHOPPERS SHOPPING HABITS 65% 22% 60% 33% 33% 31% 21% 69% 15% 0% 7% 35%

Offlineshoppers

Onlineshoppers

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.”

I shop onlineoccassionally

or only forcertain products

and services

I am happywith the level ofonline shopping

I do at themoment

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shopping onlinemore than I

do now

I’m new toonline shopping

and am stilltrying to �nd my

way around

I try to buyas much online

as I can

I will beshopping online

less in thefuture


APPENDIX SURVEY DEMOGRAPHICS

Age Provincal Location Education Level15-17 0.31% Eastern Cape 6.20% No school or some primary 1.01%18-19 0.93% Free State 3.35% Some high school 14.29%20-24 9.36% Gauteng 43.19% Matric 37.78%25-29 14.90% KZN 16.03% Technikon diploma/Artisan certificate 25.91%30-34 14.71% Limpopo 5.41% University degree 21.01%35-39 11.86% Mpumalangaga 5.45%40-44 10.38% North West 3.76%45-49 8.33% Northern Cape 1.15%50-54 7.42% Western Cape 15.46%55-59 6.24%60+ 13.90%Prefer not to say 1.66%

Monthly Household Income Work Status Field of EmploymentR1 - R2,999 7.81% Student/scholar 3.44% Administrative and managerial 19.88%R3,000 - R5,999 9.64% Work full-time/self employed 38.58% Agriculture 1.53%R6,000 - R11,999 9.65% Work part-time 6.69% Artisans related 4.05%R12,000 - R19,999 7.44% Retired 4.58% Clerical and sales 6.90%R20,000 - R29,999 6.61% Not working 7.03% Production and mining 3.60%R30,000 - R49,999 6.52% Unemployed 10.94% Professional and technical 16.99%R50,000 - R69,999 2.91% Service 7.20%R70,000+ 3.92% Transport and communications 5.59% Dependent/no income/don’t work 9.65% Not working 12.33%Prefer not to say 35.86%

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.


ABOUT

Effective Measure is a leading provider of digital audience, brand andadvertising effectiveness measurement and targeting solutions, bringingbest practice online measurement data to premium publishers, agencies,networks, advertisers and researchers. The EM solutions offer brands, mediaand agencies invested in Oceania, Europe, Southeast Asia, Middle East NorthAfrica and South Africa, a clear insight into their online audience and theever-growing Internet population. www.effectivemeasure.com.

ABOUT EFFECTIVE MEASUREThe Interactive Advertising Bureau South Africa, formerly the DMMA, is anindependent, voluntary, non-profit association focused on growing andsustaining a vibrant and profitable digital industry within South Africa. TheIAB South Africa represents the digital industry across all sectors including themedia, the marketing community, government and the public, and also acts asthe channel through which international bodies can enter the South Africandigital market. The IAB South Africa currently represents over 96 local onlinepublishers and over 93 creative, media and digital agencies, between themaccounting for more than 16 million local unique browsers and 440 million pageimpressions. The IAB South Africa strives to provide members with a platformthrough which they can engage, interact and address digital issues of commoninterest, thereby stimulating learning and commerce within the South Africandigital 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_saon Twitter.

ABOUT THE IAB SOUTH AFRICA

Visa Inc. (NYSE: V) is a global payments technology company that connectsconsumers, businesses, financial institutions, and governments in more than 200countries and territories to fast, secure and reliable electronic payments. We operateone of the world’s most advanced processing networks — VisaNet — that iscapable of handling more than 65,000 transaction messages a second, with fraudprotection for consumers and assured payment for merchants. Visa is not a bank anddoes not issue cards, extend credit or set rates and fees for consumers. Visa’sinnovations, however, enable its financial institution customers to offer consumers morechoices: 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.

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Data & Analytics

The South Africa eCommerce Report April 2016 is brought to you by Visa