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Ecommerce platform Orderin sees growth opportunities in SA’s township economy
There's no doubt that the face of shopping has gradually changed over the years. Shopping online has become more and more attractive during the Covid-19 pandemic. Ecommerce platform, Orderin sees many more opportunities in this space, they also see township businesses as a significant contributor to that growth. OderIn CEO, Dinesh Patel joins CNBC Africa for more.
Wed, 26 May 2021 10:50:46 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Potential for significant growth in the online retail sector in South Africa
- Addressing structural challenges to facilitate the transition to e-commerce and drive innovation
- Opportunities to tap into township markets and promote inclusivity in the digital economy
The face of shopping has been evolving steadily over the years, with online shopping gaining significant traction, particularly during the COVID-19 pandemic. E-commerce platform Orderin is at the forefront of this shift, identifying numerous opportunities in this space and highlighting township businesses as a key player in driving growth. Dinesh Patel, the CEO of Orderin, shared insights on the potential of e-commerce in South Africa during a recent interview with CNBC Africa. Patel emphasized that while e-commerce currently accounts for approximately 4 to 4.5% of total retail sales in the country, there is immense potential for growth in the online retail sector. With a gradual shift from offline to online shopping, businesses are expected to adapt and reach customers through digital platforms. Patel underscored the importance of addressing structural challenges such as mobile penetration, data costs, payments infrastructure, and logistics to facilitate the transition to e-commerce. He noted that significant investments have been made in the infrastructure over the past decade, paving the way for the emergence of new services and offerings catering to the evolving economy. When discussing the demographics of e-commerce users, Patel highlighted that early adopters typically belong to higher LSM categories but emphasized the growing appeal of online shopping among the broader South African population. The e-commerce sector is witnessing a shift towards 'quick commerce' or on-demand delivery services, with a focus on high-frequency products and short delivery times. While travel and electronics have traditionally dominated online sales, categories such as food delivery, grocery, pharmaceuticals, and alcohol are increasingly gaining traction in the e-commerce space. Patel expressed optimism about the significant contribution that township businesses can make to the e-commerce sector in South Africa. Despite the current user base being skewed towards higher LSM segments, Orderin is exploring strategies to penetrate the township market. Patel highlighted the role of structural advancements such as high mobile penetration and reduced data costs in enabling access to online shopping services in underserved communities. The CEO emphasized the value of convenience for consumers in the emerging economy, citing the importance of time-saving solutions in high-density areas. While acknowledging logistical challenges, Patel outlined Orderin's plans to expand into township and rural regions in the future. Addressing concerns about potential instability in township areas, Patel viewed such risks as manageable and not hindrances to market entry. He expressed confidence in providing exceptional customer experiences to overcome challenges and navigate any disruptions effectively. In conclusion, Orderin's proactive approach to embracing e-commerce opportunities in South Africa's evolving retail landscape signals a promising future for online shopping, with a focus on inclusivity and sustainable growth.
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