A quick update
A quick update It is hard to believe we are nearly half-way through 2022. When I think back to two years ago – still at Level 3 lockdown, not really able to travel, many schools still closed as well as many businesses – things are looking very different now. The Department of Statistics SA recently released an economic update showing our GDP expanded by 1,9% in the first quarter of 2022. The size of the economy is now at pre-pandemic levels, with real GDP slightly higher than what it was before the COVID-19 pandemic. The report further shows household consumption increased by 1,4% in the first quarter, while the hospitality sector in particular saw a sharp rise in activity as consumer spending on restaurants and hotels increased by 6,5%. So while many businesses are still struggling to make their way out of the post-pandemic depression, there is reason to be optimistic. President Cyril Ramaphosa recently underlined the importance of growing the country’s digital economy, with the release of new broadband spectrum having been identified as a key reform for driving economic growth. While this process has been delayed, South Africa is undertaking other digital reforms, including the publication of the country’s draft national data and cloud policy which ultimately seeks to put in place a conducive and enabling environment for the data ecosystem to thrive. While the past two years helped some online businesses to thrive, it also unfortunately saw many publishers and merchants closing down. It is therefore encouraging to see a pickup in enquiries coming in from new publishers and prospective advertisers wanting to join the network. International travel, which was essentially dead for nearly two years, has picked up steadily though we are yet to see the numbers reach pre-pandemic levels. I believe this will take some time. For those of you who will be taking some time off for the winter school break I wish you a relaxed time ahead. Safe travels to those heading out to different corners of the country and the world. Let us come back rested and ready for whatever the rest of 2022 has to offer. Onwards and upwards! Daniel Gross – CEO All CEO's Thoughts Interviews and Insights Industry News Interviews and Insights Why Black Friday 2022 will differ from before 26 Oct 2022 Why Black Friday 2022 will differ from before Despite current downturns in the economy, evidence shows that the e-commerce industry is picking up and going back to pre-pandemic… Read More CEO's Thoughts Never stop marketing 26 Oct 2022 Never stop marketing There’s a LOT going on in the world right now. This is not a political piece, yet it is diffiult to ignore the world-shaping events… Read More Interviews and Insights Interview with Sandra Jardim, Blogger/Founder of MammaBearLove 26 Oct 2022 Interview with Sandra Jardim, Blogger/Founder of MammaBearLove Our October profile is Sandra Jardim, mom to twins Gisela and Alaia and blogger/owner of MammaBearLove. She uses her blog as… Read More Prev123Next
2020 the year that e-commerce explodes?
If it scares you to think that (e-commerce wise), everything you’ve planned, worked on, sacrificed and hoped for in 2020, depends on what happens in the next 35 days, it’s because it is. The end of October is upon us and with exactly 35 days to the Black Friday/Cyber Monday weekend, it’s time for online businesses to shift into top gear, put on those running shoes and successfully execute what is left of their 2020 marketing plan. Personally, I find it hard to re-focus my mind on Christmas and the holiday season. The last 7 months have felt similar to a black hole swollowed up a big chunk of the year, and now we’re fast-forwarding to the busiest online shopping time of the year. But there is some good news. Analysts predict that 2020 will be the year that e-commerce explodes. “For the last four years, e-commerce growth has averaged between 13% to 17% increase, and last year it was up 14.7%. This year it will go ballistic, somewhere around 25% and it may go higher,” says Rod Sides, Deloitte’s vice chairman and U.S. leader retail and distribution. Given the uncertain state of the Covid infection rates, many people still plan to stay home (or close to home) this year for the holidays, which means that money will be diverted towards buying gifts, tech and home improvement items. Even those affected by the economic downturn said in a survey that they still plan to spend as much or more than they did last year. Of course this expected boom in online shopping will put retailers’ online strategies to the test. Those that use real-time data to understand individual consumer preferences, make changes the data shows are needed, and effectively leverage multiple channels will be much more successful in securing consumer spend this holiday season. Customers are demanding personalized engagement and get increasingly frustrated with retailers sending them offers for a recently purchased item and irrelevant offers, or failing to recognize them as existing customers. The expected boom will put a tremendous amount of pressure on retailer supply chains, as they need to shift resources out of stores and into fulfillment centers to process unexpectedly high numbers of orders. The physical supply chain may not be able to handle the flood of orders and making those deliveries. So while there lies a huge opportunity, there are also a number of big challenges for retailers, but if they get it right will reap the rewards this holiday season. Onwards and upwards! Daniel Gross – CEO
