As local retailers enhance their online footprints and international competitors enter the fray, the landscape is becoming increasingly competitive, necessitating that South African e-tailers adapt and innovate to meet the dynamic demands of consumers.
With over a billion transactions occurring annually, South Africa’s e-commerce industry is poised for remarkable growth, anticipated to significantly contribute to the national retail sales—projected to reach 10% by the end of 2025.
As local retailers enhance their online footprints and international competitors enter the fray, the landscape is becoming increasingly competitive, necessitating that South African e-tailers adapt and innovate to meet the dynamic demands of consumers.
This year, a notable 11.7 million South Africans are expected to engage in online transactions, illuminating an evolution in purchasing behaviour and preferences.
To maintain a competitive edge, businesses must not only innovate but also pay heed to the rich insights provided by their employees.
OneDayOnly.co.za embraced this approach by encouraging internal creativity through an in-house competition modelled after the popular Shark Tank reality TV show.
Employees are given a platform to pitch product ideas that emphasise consumer understanding, profitability, and uniqueness.
Elzaan Erasmus, a division manager at OneDayOnly.co.za, illustrated the impact of such initiatives.
Erasmus said, “The event serves as a platform for innovation, providing a glimpse into the kinds of products that shoppers will want in the future. Products must be designed to make their lives easier by saving them time and/or solving everyday problems.”
Once a winning idea is chosen, the business collaborates with suppliers to bring it to market.
From 2024's successful pitches and sales insights, Erasmus identified four pivotal consumer trends shaping the retail environment in 2025:
Eco-conscious consumption:
Sustainability is taking the lead in purchase decisions, with 52% of South Africans seeking eco-friendly products to lessen their environmental impact. This conscious shift is driving consumers to explore sustainable options such as biodegradable nappies, reclaimed wood furniture, and electric composters.
Wellness wins the budget battle:
Health and wellbeing are climbing the priority ladder, with nearly half (49%) of South Africans indicating plans to allocate a greater portion of their budgets to wellness products, outstripping spending projections for education (48%) and groceries (42%).
This rising trend encompasses everything from fitness gear to health supplements.
Simplified living, powered by tech:
As economic conditions improve with easing inflation and interest rates, consumers are becoming more intentional with their spending.
This shift highlights a growing willingness to invest in technological innovations designed to simplify everyday life - think robotic vacuum cleaners and health-monitoring wearables.
Product experience is paramount:
Today’s savvy consumers prefer products that extend beyond mere functionality, opting for those that promise memorable experiences and enhanced usability.
This trend signals a departure from traditional consumer behaviour, with emotional impact and distinct product benefits taking precedence.
Products such as voice-responsive smart home systems or gourmet meal kits are illustrative of this evolution in purchasing preferences, where personalisation and interaction define consumer choices.
Erasmus further said, “The future of e-commerce lies in the ability to predict consumer preferences before they become trends, delivering products that not only meet needs but exceed expectations.”
BUSINESS REPORT