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According to the Consumer Pulse research, in level 4 lock-down 86 per cent of respondents said they were extremely concerned about unemployment compared to 80 per cent in the survey during the Level 5 lock-down. The survey also looked at consumer behaviour during level 4 lock-down and joining CNBC Africa to unpack the trends of the report is Rachel Thompson an Insights Director at GFK South Africa.

Gauging consumer sentiment under COVID-19 lock-down

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The government says it will start penalising wholesalers, retailers and consumers that still use single-use plastics with heavy fines following the expiration of a three month grace period. Director General at the Rwanda Environment Management Authority, Coletha Ruhamya joins CNBC Africa for more.

Wholesalers urged to comply as Rwanda govt. passes law to fine single use plastic traders

By Derek Cikes, Commercial Director at Payflex



South Africans are desperate for innovative payment solutions that don’t involve credit traps. In response to a soaring debt crisis due to the miseducation of credit and lending terms and conditions &#8211; both on credit cards and store cards &#8211; philanthropic South Africans in their hundreds have been paying off other people’s store lay-bye debt, according to <a href="https://www.businessinsider.co.za/pep-lay-bye-2020-1">businessinsider</a>. 



It begs the question though, what is available for online
shoppers and is there a way to avoid credit in all its disguises entirely? The
answer is yes and they’re called ‘Buy-Now Pay-Later’&nbsp; solutions (BNPL)
that offer interest-free, zero-fee shopping with no catches, are going to war
with SA’s debt problem on behalf of online consumers.



“There is a way that shoppers can avoid debt all together,
shop responsibly and get ownership of their goods immediately,” explains <a href="https://www.payflex.co.za">Payflex</a>
CEO, Paul Behrmann. Payflex is leading the charge in disrupting the way
shoppers buy online. The company, based in Illovo Johannesburg, already has
thousands of South African customers and over 100 stores signed up for Payflex.




The problem with store Lay-byes is that you never really own
the goods until you’ve paid in full. Online solutions such as Payflex, allow
you to own the goods immediately while they pay the merchant directly and take
on all the risk. 



“This is a solution where everyone wins. The merchant can
boost their sales by 20 to 30% through larger baskets and improved conversion
while the buyer gets to own their goods right away while shopping responsibly
and avoiding any debt whatsoever,” explains Behrmann.



In other countries, millions of people are already using
BNPL solutions like these such as <a href="http://klarna.com">Klarna</a>, <a href="https://www.afterpay.com/">Afterpay </a>(global giant in this industry) and <a href="https://zip.co/nz/">Zip Payments</a>.
Behrmann believes it’s not a question of if but when South Africans will
turn their backs on destructive interest rates and choose more responsible
solutions instead.



Payflex is available on leading online stores across South Africa including South Africa’s largest fashion online retailer, Superbalist.com



Content provided by Talking Point Communications

Fintech innovations offer alternative to credit traps

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1110" height="555" src="https://www.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-1110x555.jpg" alt="" class="wp-image-353226" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-1110x555.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-300x150.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-820x410.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-768x384.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-1536x768.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-696x348.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-1068x534.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-840x420.jpg 840w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet-1920x960.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/shop-now-sign-tablet.jpg 2000w" sizes="(max-width: 1110px) 100vw, 1110px" /><figcaption>E-shopping Online Business Promotion Shopaholic Concept</figcaption></figure>



By Derek Cikes



Consumer demands for a frictionless, personalised experience which caters for their lifestyle needs are set to drive online retail trends in 2020.&nbsp; The result is a focus on creating a customised experience that supports and enhances shopping in the virtual environment, facilitating the buying journey.



Derek Cikes, Commercial Director at payment fintech Payflex,
shares the top 8 online retail trends for the year ahead.



<ol><li>Omnichannel retailing</li></ol>



As shoppers expand their touchpoints with a brand, the online and bricks-and-mortar channels will increasingly merge into a seamless omnichannel experience within the brand ecosystem.&nbsp; In order to facilitate this, merchants need to provide shoppers with an integrated shopping experience across all channels that allows shoppers to browse, shop and return items across in-store and online channels. 



 2. Pop-up Shops



2020 will see pop-up shops expanding beyond
brand awareness to provide shoppers with a curated shopping
experience.&nbsp;&nbsp; Leveraging the scarcity and exclusivity principles
associated with these temporary storefronts, shoppers will have access to novel
or limited brand items.&nbsp; Brands in turn will have the opportunity to
engage one-on-one with their customers while collecting shopper data.



This intimate connection will also enable
pop-up stores to take on a new position of facilitating brand experiences
rather than only focussing on the commercial aspect of a retail pop-up store.



“By providing a compelling pop-up experience, brands are able to differentiate themselves and establish a unique relationship with their target market,” says Cikes.



 3. User experience



User experience will be optimised by levering online
channels. Simplicity is the key, enabling the user to effortlessly navigate the
website and find and acquire the desired items.



This includes reducing the number of
steps to complete a payment transaction such as the seamless single click
checkout process which can dramatically increase sales conversions.&nbsp; 



“Our experience has shown that the Payflex 1-click checkout process can reduce cart abandonment by a whopping 40% &#8211;&nbsp; a huge benefit for ecommerce merchants,” says Cikes.



 4. Online security



Concerns about online security and privacy are one of the key challenges to growing online sales in South Africa.&nbsp; To provide comfort to shoppers, 2020 will see a focus on creating a secure online infrastructure and being transparent about the use of data, so that shoppers feel comfortable sharing their financial information.&nbsp; 



 5. The customer journey



The year ahead will see online stores
optimizing the customer journey through each touchpoint with the brand.&nbsp;
This will translate into establishing a strong online communications infrastructure,
supporting customers through a variety of online and social media platforms
throughout their purchasing journey.



This optimizes the shopper’s online experience, allowing the next steps to follow naturally &#8211; increasing conversions, customer retention and eventually brand advocacy.



 6. Payment choices



Consumers are increasingly wary of incurring
debt to purchase lifestyle goods, which has opened the door to alterative
non-credit pay later solutions, such as Payflex.&nbsp;&nbsp; 



“Customers want more control of their spending, encouraging the online retail industry to incorporate payment experiences which meet their needs, such as the free spending solution from Payflex which can boost sales by 20-30%,” says Cikes.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="624" height="330" src="https://www.cnbcafrica.com/wp-content/uploads/2020/01/Payment-Choices-1.jpg" alt="" class="wp-image-353225" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/01/Payment-Choices-1.jpg 624w, https://cms.cnbcafrica.com/wp-content/uploads/2020/01/Payment-Choices-1-300x159.jpg 300w" sizes="(max-width: 624px) 100vw, 624px" /></figure>



 7. Online Ubiquity



The increase in social media retailing demands a pervasive online brand presence where shoppers can engage in a seamless experience with the brand and buy products directly from social media channels in a contained, accessible environment such as Instagram.&nbsp; 



 8. Machine Learning



The year ahead will leverage the
capabilities of artificial intelligence and machine learning to provide more
personalised shopping experiences.&nbsp; By using data and search history,
merchants can curate products and services specific to the shopper’s needs and
likes.&nbsp;&nbsp; This results in being able to customize each shopping
experience such as with sites like Amazon, where automatic suggestions are made
in addition to the purchase or music sites such as Spotify or Deeza which
leverage machine learning to provide a personal playlist based on a user’s data
and online search and listening history.



Final Comments



The
inter-relatedness of consumer demands and technological innovations creates one
of the central themes of online retail in 2020 – a symbiotic relationship
between shopper and technology.



“This will play out in new
avenues of innovation which meet consumer demands while leveraging technology
to create a meaningful online experience, moving shoppers further along the
customer journey to facilitate successful conversions,” concludes Cikes.

E-shopping Online Business Promotion Shopaholic Concept

Top 8 retail trends to watch in 2020

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With new risk-based pricing systems for loans on the horizon in Kenya, it’s becoming increasingly important for both consumers and financial institutions to understand how credit scores can help enable the right conversations.

How your credit score impacts your daily decisions

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Despite the internal East African Communities having a market of about 146 million consumers, the regional trade still faces numerous constraints. CNBC Africa spoke to Hon. Peter Mathuki, Executive Director and CEO of East African Business Council on this and more.

EABC’s Peter Mathuki speaks on untapped investment opportunities in east Africa

Press release
26 November 2018, Johannesburg: According to data from instant EFT payment provider i-Pay, the Rand value from Black Friday sales this year grew by more than a thousand percent over 2016 figures.
“At face value, e-tailers have experienced the highest volume of sales on record for Black Friday in South Africa. More significantly, the completed transactions on the day increased by close on 700% when compared to last year,” says Thomas Pays, CEO of i-Pay.
However, Pays believes that the uncertain economic environment of the past year has contributed to how much consumers have been willing to spend online.
“Our data shows that the average EFT transaction value decreased by 19% from last year. It highlights the importance of e-tailers being able to process every transaction reliably and securely. Irrespective of the value of the sale, transactions add up and could mean the difference between reporting a profit and having to retrench staff,” says Pays.
He says that while e-tailers invested heavily to ensure their sites stay online, they were frustrated by traditional online payment services being unavailable.
“People could browse online stores but could not checkout and pay for their orders. This resulted in consumer frustration and merchants losing out on sales. However, with alternative payment solutions such as Instant EFT through i-Pay, this was mitigated.”
Thirty-five percent of consumers using i-Pay were using it for the first time. Pays says this is evidence that people are willing to embrace digital payment solutions. At one point during Black Friday, i-Pay was processing 438 concurrent transactions, with the fastest recorded transaction taking a mere 13 seconds.
“Being online is no longer good enough. You must empower merchants and consumers with digital payment solutions that are secure, do not require credit cards or customer registration, and are available no matter the traffic volumes. This year has shown the importance of this and made people aware of the need to use Instant EFT systems for their online purchases,” he concludes.

#BlackFriday sales up, but transaction value down

JOHANNESBURG (Reuters) &#8211; South Africa’s headline consumer inflation slowed to 4.9 percent year-on-year in August from 5.1 percent in July, data from Statistics South Africa showed on Wednesday.
On a month-on-month basis, inflation contracted 0.1 percent in August after rising from 0.8 percent in July.
Core inflation, which excludes the prices of food, non-alcoholic beverages, petrol and energy, fell to 4.2 percent year-on-year in August from 4.3 percent in July, while on a month-on-month basis was flat at 0.0 percent from 0.6 percent.
Reporting by Olivia Kumwenda-Mtambo; Editing by James Macharia

SA’s headline consumer inflation slowed to 4.9 percent year-on-year in August, what you need to know…

<div id="attachment_308674" style="width: 686px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-308674" class="wp-image-308674 size-full" src="http://cnbc.africa/wp-content/uploads/2018/06/Sifiso-Falala1.jpg" alt="" width="676" height="380" />Sifiso Falala. Photo: Supplied.</div>
Observations from the past 20 years – the evolution of market research and its impact on decision-making
By Sifiso Falala, Chief Executive, Plus 94 Research
The days when the all-knowing conglomerates dictated consumer demand are behind us – consumers have become more discerning, and service providers that fail to have their finger on the pulse of evolving consumer needs through innovative use of tools such as market research and big data analytics run the risk of being left behind.
The market landscape is changing rapidly as lifestyle changes precipitated by the economic downturn, evolving innovations, trends and the growth of the health-conscious lifestyle have empowered consumers to take more control of their life and lifestyle.
<h4>Businesses are rethinking their products &amp; services</h4>
Market research has always played a very important role in businesses throughout the world and also in South Africa, but the financial crisis we have witnessed has led businesses to rethink the bouquet of products and services they offer and how they are offered in order to remain relevant. Although the role of market research as a business tool has become increasingly important, the evolution of technology has increasingly shaped and influenced how companies and organisations conduct market research.
There is a big transformation shift today compared to 20 years ago when Plus 94 opened its doors for business. There has been both a consumer and business mindset shift. Research is no longer a black box, and researchers are no longer quasi-crystal ball gazers and wavers of magic wands. Everything is a lot more open, and a lot more integrated.
<h4>The role of technology</h4>
Technology is playing a big role in empowering respondents, clients and researchers. The transition between the collection of data and reporting it has been radically reduced in time span. We can now talk of live reporting which is quite nice but places an extra burden on remaining current.
Ten years ago, research was conducted using pen and paper. This process of deciphering all this data today would be laborious and labour-intensive given the market scale growth. Today research can be completed without the use of pen or paper and in a growing number of cases without an active human interface. Sophisticated technology has meant sophisticated respondents, clients, and researchers. Deliverables are now expected to have synergies and integration with other aspects of the business which may be running in parallel such as advertising, the product, distribution and pricing.
The use of devices operates with the aid of live or delayed Internet connectivity. Accessibility of complementary customer databases has increased the importance of data fusion in recognition of the fact that all national sample surveys are approximations of the same population.
<h4>Challenging new technologies</h4>
The world is on the cusp of the Fourth Industrial Revolution, which will be characterised by a range of new technologies that are fusing the physical and digital and challenging ideas about what it means to be human.
Market research has always been done, but what makes it seem that much more important now is that it is easier with the use of technology while uncertainties about customers have and continue to increase in the face of rampant consumer sovereignty. Notwithstanding the proliferation of technology, the basic principles of research design, questionnaire design, and field ethics remain fundamental to the success of market research projects.
We are in an era where business is more competitive, and some industry barriers have become blurred. The risk of whole industries becoming obsolete is at its highest.
Despite the advent of technology, the underlying tenets of market research have remained intact.
<h4>Keeping up with consumers</h4>
Consumers evolve; brands, products, and services have to go where consumers are going and research is helping brands keep up with the constantly evolving market and consumer trends.
Market research is a kind of accessory that enables decision-makers to reflect to ask the difficult questions about whether the products they sell are what the customer wants, whether the prices they charge are affordable for their target audience, how products fit in with their daily lives, and what the long-term implications of using their products and/or services are.
Now more than ever, businesses are taking into account facts from the consumer or how customers feel about their product because they are aware of the flooded nature of consumer options and the speed at which migration could be affected.
The automotive, mining, agriculture, banking and FMGC industries are examples of sectors that have benefited from advances in market research over the past 20 years. In fact, benefits accruing from advances in data collection, processing and dissemination have meant that there are more new users of market research in the past 20 years than in the previous 20.
<h4>Growing importance of personalisation</h4>
Some of the examples of successful transitions include the personalisation of formulae, service structuring, and communication. Consumers are now more than ever before exposed to larger doses of aggregated service offerings where so-called value adds are thrown in to go with a basic value proposition.
Consumer platforms and social networks mean that research no longer needs to be a prerogative of the researchers to initiate. Consumers can now spontaneously give a stream of vital, albeit unsolicited, research data, using both direct and passive means. To that extent, therefore, harnessing and reducing consumer messaging has become even more important, in line with the dire consequences of failing to do so in a modern world that is alert, empowered and inherently not motivated by loyalty.
 
About Plus 94 Research
Plus 94 Research is one of South Africa’s leading market research companies. The company was established in 1998 and is recognised for its progressive thinking and leadership. Founded by Chief Executive Sifiso Falala and his partner Tirhani Mabunda, the company has become a key player in the delivery of quality market research solutions to local, regional and international clients. The company’s vision is to remain uncompromising in its approach to the verification and validation of research methods and processes, and to continue in the deployment of the best available human and technical resources needed to resolve research problems.

Op-Ed: Evolution of Market Research

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Reana Steyn, Ombudsman for Short-term Insurance and Banking joins CNBC Africa to discuss how the 1 per cent VAT increases effective from the 1st of April, affects banking fees.

New VAT rate pushes up bank charges

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Many consumers are repeatedly caught up in the same cycle of sales and promotions around the festive season. Consumers recklessly spend their hard-earned cash and bonuses on goods and services that they did not budget for.

Don’t let #BlackFriday sale end with a black listing

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A recent consumer study targeted at people’s purchasing habits and behavior found that more than half of all consumers already buy or want to buy sustainably with 33 per cent purchasing products with sustainability in mind.

Why Unilever East Africa is betting big on sustainability – CEO

Llewellyn Allen | Metropolitan
There is a long overdue sea of change happening in South African marketing. A few brave brands have started to shift the way that modern African consumers are being communicated with.
<img loading="lazy" decoding="async" class="wp-image-18998 size-full alignleft" src="http://cnbc.africa/wp-content/uploads/2017/01/e-commerce__retail_shopping.jpg" alt="Mr Price cautious over credit" width="428" height="350" />
The advertising industry, belatedly, is starting to reflect and respect the complexity and density of a market that, to date, generally has been treated as a lumpen mass with a singular identity. Metro FM is about engaging with the African Consumer and strive to be present in the lives of the consumer, wherever they are. Vodacom is about depicting South Africans at their best and make an extra effort to meet the needs of the modern African consumer with its innovative products and service offerings. Winning the Grand Prix award at last year’s Sunday Times Top Brands Awards is a testament to that
Woolworths is another brand changing the way they communicate with the modern African Consumer. The South African Customer Satisfaction Index (SAcsi) for supermarkets shows that South African consumers are most satisfied with Woolworths in 2017, after winning last year as well. Woolworths has successfully shown that they are able to consistently meet the modern African’s ever-changing needs. I would also respectfully add, Metropolitan. Metropolitan is a truly African-based business providing aspirational individuals customised financial service packages that protect and enhance their assets. Metropolitan is all about people. These are among the brands re-shaping the conversation.
Up till now we have been operating off simplistic assumptions about identity and how our emerging middle class see themselves. However, continuous research, interactive engagements with our clients and plenty of other evidence suggests that identity is in fact complex and unique.  South African millennials (Afrillennials), in particular, have multifaceted identities and will decide which facets of those identities matter to them without being dictated to.
They are citizens of the world and the continent and still proudly South African. They believe that the best version of Africa is not only the best version of Europe or the USA in Africa, but a melting pot of different cultures and ideologies. They live in their current environment and in their inherited communities. They will, on their own terms, define themselves by race or language. They are ‘born frees’ who are also tied by their past. They want respect for all their identities and do not want to be pigeon-holed or put in a box. According to The Deloitte Millennial Survey 2017 (Apprehensive millennials: seeking stability and opportunities in an uncertain world) the South African millennial is more optimistic than the global norm.
The financial knowledge and resourcefulness of the African consumer is far greater than previously acknowledged. They are effectively financial experts in their own right. For financial services brands, this has powerful implications. In the old world, aspirational African consumers in this category were assumed to want to migrate upwards from a ‘mass black brand’ to an ‘elite white brand’. It’s now very clear they want neither. What they want is a financial services brand that delivers solutions relevant to their world and backs that with responsive service. To connect, financial services communication needs to become ingenious, proud and real because that’s what our consumers are. We need to offer ourselves as mentors and partners, and not preachers or dictators. We must show respect and understanding.
The use of vernacular languages is a key part of relating to this market. English has been the default language of brand building for financial services in the middle market but that has to change, along with our service provision which must deliver in, what we call, an omni-channel way &#8211; whatever language, on whatever platform, and at whatever time the client wants.
Metropolitan’s new #ISeeYou campaign is an attempt to really step change marketing into this world. The brief to amplify African success has resulted in a spectacular mash up of rap, vernacular, social seeding and assertive African positivity. The advert is the creative collaboration led by Ogilvy Cape Town Executive Creative Director, Tseliso Rangaja and directed by Sunu Gonera of Egg Films. Shot in a uniquely local back drop, Soweto born rapper Spoek Mathambo delivers a message of celebration of the hard work and financial Success of South Africans in poetic virtuosity.
You’re the guy that gets up in the morning and says 
“siyabangena! siphusha ipassion”
You put your shoulder to the grind. 
You make each second of every hour count.  
 My brother. Wena owaziyo ukuthi ama gents ayaphanda.  
That elke mens moet ‘n plaan maak&#8230;not only n boer.
I see you!
Giving it your all,
No half measures.
“It’s going to be a good month”. 
Because to you… failure is niks.
To the people who make everyday a success. 
I see you.
Thus far, the feedback is overwhelmingly positive because it is so different from where the brand has gone before. With the focus on relevance and consumer awareness, Metropolitan puts appreciation into being one of the most modern African companies that elevates the lives of the consumer to establish a truly South African connection.

Connecting With The Modern African Consumer

Mercy Mpinganjira |University of Johannesburg
&nbsp;
<div class="grid-ten large-grid-nine grid-last content-body content entry-content instapaper_body">
Online shopping is becoming ubiquitous in many parts of the world. The internet today enables retailers to open online and serve customers at any time of the day without the need for them to visit a physical store.
This is especially true in countries like China, the US and the UK, which lead the pack when it comes to e-commerce. Globally, e-commerce is a trillion-dollar industry and online retailing is a major part of it.
Online retailing is a relatively new phenomenon and still a small element of total retailing in Africa. In South Africa, for instance, total online salesin 2016 were estimated at R9 billion which was only 1% of total retail sales.
The rapid penetration of internet technologies around the continent provides hope for e-commerce’s continued growth. Firms that want to enter the online retailing market must learn and develop strategies that will help them benefit from this growth.
I undertook a study that looked at various factors that influence customer attitudes towards online stores. It focused on existing online shoppers from South Africa’s Gauteng province, which is the country’s economic powerhouse. There were 201 respondents in the study. All were older than 18 and from the middle- to upper-income groups according to the South African Living Standard Measure. 98 were men and 103 were women.
The respondents completed a structured questionnaire. They gave answers on a scale from 1 (strongly disagree) with a statement to 5 (strongly agree). The customers were asked to have a specific online store in mind when answering the questions.
<h2>The findings</h2>
The findings showed that customers, in general, were positive about the online retail stores they were using. Four main factors influenced their attitudes and intentions to shop at a particular online store again. These were:
<ol>
<li>Store offerings: Denoted by the choice of products and the price at which the products are offered, this emerged as the main source of customer value associated with a store. Customers rate an online store’s offering as high when they are happy with the type and quality of products on offer as well as the price at which these are offered.</li>
<li>Navigation aids: This refers to website elements that help shoppers to easily find what they are looking for. Navigation aids can make online store visits easy and encourage shoppers to take desirable action like visiting more pages associated with an online store and purchasing products. Examples of online store navigation aids include a good site map, a FAQ (frequently asked questions) section and a built in search facility.</li>
<li>Security concerns: Online shopping entails sharing of personal information, including credit card details and many respondents were anxious about the security of such information. They worry about data breaches and the possibility of their personal information ending up in the hands of hackers or other unauthorised people.</li>
<li>Fulfilment reliability: this refers to dependability in the way in which online shopping orders are processed. It is about having the right products delivered to customers within stipulated time frames.</li>
</ol>
<h2>Implications for retailers</h2>
Online retailers need to realise that not everyone who has access to internet is a potential customer. Segmentation and target marketing is key to ensuring that customers are satisfied with an online store’s offering. When this is properly done, it will help an online store to stock products and implement pricing strategies that will have high appeal to the target market.
It’s also important to give serious attention to online store design issues. They need to provide good navigation aids to facilitate the provision of access and search convenience. Ease of navigation is critical to enhancing any online customer’s shopping experience.
Thirdly, online retailers need to appreciate that their customers are likely to have some security concerns. Online retailers have a duty to help ensure their customers’ security by keeping up to date with technological developments in this area and using the best security systems available.
The study’s findings about order fulfilment show how important it is to invest in a good order processing system. Customers need a clear indication of when they can expect their orders. If there are any delays customers must be informed in good time to quell their anxiety. Online retailers should invest in order tracking services so customers can easily follow the progress of their orders.
It is worth noting that focusing on these four factors – store offerings, navigation aids, security concerns and reliability in order fulfilment – can encourage customers to repurchase from the same store. Any online retailer must work not just to acquire new customers, but to retain existing ones.
<h2>Limitations and future studies</h2>
All these findings must be understood bearing in mind that the study had some limitations.
It was based on a sample of respondents drawn from Gauteng, which is South Africa’s most urbanised province. This means the findings may not be generalised to all parts of the country.
Secondly, it looked at online stores in general rather than those in a particular industry. This means that any industry differences in factors that influence attitude towards online stores could not be established.
Future studies may include samples drawn from different parts of the country or the continent as well as aim at establishing industry differences or similarities by focusing on retailing within a single or a few industries.
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Here’s why South Africa’s online shoppers keep coming back for more

Miemie Struwig, Laura Best, Sibongile Muthwa | Nelson Mandela University
Across the globe consumers are increasingly realising their power. In many countries this consumer consciousness, which marries consumer rights to sustainability issues, has been greatly helped by dynamic consumer protection policies.
In Africa, the rise of the middle class is fuelling a consumer economy and countries have begun to beef up their consumer protection policies. But they tend to be disconnected from sustainability issues.
South Africa, which leads the continent in terms of consumer protection regulations, showcases this limitation. The country has a good consumer protection policy regime, benefiting consumers and providing them with rights and redress possibilities. But it’s not linked to sustainability concerns.
The South African situation is not helped by the location of consumer affairs and sustainability in two separate government departments. Consumer protection policy is the responsibility of the Department of Trade and Industry. For its part, sustainability is primarily located in the Department of Environmental Affairs. As a result there’s a disconnect between the two.
South Africa – and other African countries suffering from this disconnection – need to develop a new framework. Our study identifies key areas countries should focus on to get to an integrated approach.
<h2>International experience</h2>
In recent years many countries have amended their consumer protection laws to connect them more closely with sustainability concerns. We looked at a number of international experiences to identify key aspects that could make up a comprehensive consumer protection framework.
Brazil provided helpful insights. It established the National Consumer Bureau in 2012. It was designed to plan, prepare, coordinate and implement the country’s national policy on consumer affairs.
Brazil’s system runs on a model that actively pursues an integrated approach to consumer protection and sustainability. It connects a number of government departments to work together. Departments and agencies in sectors like tourism, health, transport, aviation, municipalities. Together with business representatives they cooperate to ensure consumers rights.
Chile has implemented a national initiative titled education for sustainable consumption. It was designed to provide consumers with information about the environmental and social impact of their daily choices. The underlying policy premise is encouraging responsible consumption.
In Europe, Germany aligned its consumer protection law with European Union consumer rights directive. The emphasis is on giving consumers balanced and independent information so that they can make comparative choices.
China unveiled new consumer protection laws in 2014. Critical changes included raising penalties for false advertising, including false statements about human health or safety. But the law is silent on measures retailers must take to ensure the accuracy of product information.
While many countries are incorporating some elements of sustainability into their consumer protection legislation, it isn’t happening fast enough on the African continent.
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<h2>Lagging behind</h2>
Our study showed that consumer protection policies in many African countries tend to be narrow. This is partly dictated by economic conditions. In poorer countries the basic needs of consumers are given precedence over sustainability considerations.
In addition, poverty limits consumer choices. Products that are produced in a way that doesn’t damage the environment tend to be more expensive.
Ideally, there should be a mix of policy instruments to enable consumers to make more sustainable consumption choices. These must touch on product safety regulations, product information provision and consumer information standards.
South Africa’s Consumer Protection Act has gone some way to closing the gap. The act provides for industries to voluntarily implement minimum sustainability compliance requirements. In addition, the government has powers to prescribe minimum industry sector standards.
But little has been done to put in place mechanisms to enforce these provisions. This also limits the insertion of sustainability goals into consumer protection policy.
On top of this the act should be amended with a view to:
<ul>
<li>improving the definition of key concepts of sustainability and sustainable consumption</li>
<li>making the link between consumer protection and sustainability explicit</li>
<li>and setting down minimum requirements for self-regulation.</li>
</ul>
Because sustainability straddles multiple policy domains, there needs to be joined-up implementation across government.
Consumer education and stakeholder engagement are important because individual’s choices and behaviour also have an impact.
<h2>The way forward</h2>
Sectoral self regulation is an immediate starting point. To trigger this, the business community should review business processes. They must find ways to integrate sustainability and consumer protection.
Debates among policymakers in regional bodies such as the African Union can play an important role. The advances that have been made in the EU provide
But these debates must be underpinned by the knowledge that poverty limits consumer choices. Basic needs of poor consumers need to be protected. South Africa has made a head start and can lead the way.

The gap between consumer protection and sustainability in Africa

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A recent report from Nielsen suggests that the current macro-economic conditions in Nigeria has compelled consumers in Africa&#8217;s largest economy to make fundamental changes in what, where and how they shop.

How Nigerian consumers are adapting to challenging economic conditions

The 2017 budget speech takes place at a time when the fiscus is under pressure. Unsurprisingly, the Minister has raised the necessary additional revenue by primarily increasing personal taxes. This comes through in the form of lower bracket creep relief, a new tax bracket for high income earners, a higher dividend withholding tax rate and higher indirect taxes.  All this places greater pressure on consumers and their ability to save while at the same time making tax preferred vehicles, such as retirement funds, all the more attractive. 
We are encouraged by National Treasury’s ongoing initiative to drive retirement and social security reform, as we believe this demonstrates a positive reinforcement of the need to implement measures to encourage retirement savings among South Africans. We welcome the clarity on how the R350 000 cap should be applied, although we would have liked to see this cap increase with inflation.  The ability to preserve benefits post retirement is also a positive move. 
The increase in the annual allowance for Tax Free Savings, which was increased from R30,000 to R33,000 is also pleasing. This is yet another vehicle that individuals can use to avoid dividend withholding tax and capital gains tax. Although the lifetime limit of R500,000 wasn’t mentioned, it is unnecessary at this stage as we’re only entering the third year since its introduction and we trust that this limit will also be adjusted in time.
No update was announced regarding the annuitisation requirement for provident fund members, which formed part of the Tax Laws Amendment Act that was introduced 1 March 2016 but postponed to 1 March 2018. It is encouraging that Government is continuing to engage with key stakeholders to reach a consensus and we trust that a final decision in this regard will be made well before the proposed implementation date of 1 March 2018.
In terms of social security reform, the Government acknowledges in the budget that this will take time to implement and we support the need to seek short-term endeavours to address the chronic underfunding of retirement that South Africa faces.
One such suggestion is compulsory auto-enrolment of employees into a fund by their employers, which would make it compulsory for an employer to offer their employees a retirement fund structure. Our research shows that many South Africans hold a poor view of their current and future financial situation.  This reform, if introduced, has the potential to enable the retirement system to better prepare more South Africans for a financially secure retirement.﻿

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