CONCLUSIONES Y RECOMENDACIONES

Global online shopping is growing rapidly and is expected to grow from 7.4% in 2016 to 8.8% of total retail spending by 2018 (Saleh, 2016:1). Although online retail sales are growing across the globe, some countries are more advanced than others in their development of online shopping. An article by Saleh (2016:1) reports that the United Kingdom has the highest online retail sales, as a percentage of total retail sales at 15.6%, followed by China (13.8%), Norway (11.5%), Finland (10.8%) and South Korea (10.5%).

Online retailers in larger, more developed nations are benefitting from globalisation and finding possibilities for growing their brand in other markets (Global Retail E- Commerce Index, 2015) and several brick-and-mortar retailers have used online shopping to expand internationally. The Nielsen Company conducted a survey in 2010,

across 27 000 Internet users in 55 different markets, to investigate how consumers shop online and what they buy (The Nielsen Company, 2010). Globally, one-third of respondents reported that they purchase products from retailers with one presence (e.g. Takealot.com), followed by 20% of respondents who preferred shopping from online retailers with an online and brick-and-mortar presence (e.g. Woolworths). Furthermore, online consumers across the globe reported that books and clothing would continue to be their most planned online purchase within the next six months. International shipment and order fulfilment are improving and many logistical companies make it possible for online retailers to ship their products across the world and overcome currency, customs and return issues (The Nielsen Company, 2010).

It is important for online retailers to understand the global online market to ensure that they are up to date with the latest developments in technology and shifts in consumer behaviour. For retailers, the disruption by online businesses is increasingly gaining momentum which intensifies the need to identify consumer behaviours that will drive the retail revolution going forward (8 key insights that will drive changes in online and in-store retail, 2016). The Total Retail Reportby PwC (2016) addresses trends that will affect future consumer behaviour during the global consumer revolution. The survey conducted in the report included nearly 23 000 online consumers in 25 different countries, as well as 1 000 South African consumers. Key insights from the report will further be alluded to in the following points (8 key insights that will drive changes in online and in-store retail, 2016).

• To understand the future of online shopping behaviour on a global scale, it is imperative that retailers understand consumer behaviour within the Chinese market. Data from the PwC report shows that early trends in China, such as online shopping, are later seen in other markets. The importance of the Chinese online shopping market is illustrated by leading Chinese retailer, Alibaba, who has overtaken Walmart as the world’s largest retailer (Alibaba passes Walmart as world's largest retailer, 2016).

• Affordability is a major driver of shopping behaviour across the world and many respondents in the PwC report indicated that they choose certain retailers because of the prices they offer. In some countries however, consumers reported convenience as much a part of value as price.

• The continued importance of physical stores remains noteworthy. Respondents in the survey reported that they prefer to research products online, but make purchases in-store. Consumer electronics is an example of a product category where 47% of South African respondents reported conducting their research online, but 60% completed their purchase in-store.

• The previous trend affirms the significant role that retail employees and sales staff play in today’s ‘tech-savvy’ retail environment. Sales staff need to have an extensive knowledge of product offerings to serve technologically enabled consumers.

• Consumers are buying more products online using their mobile phones. Mobile commerce has been said to be a major driver of online shopping. The PwC study found that many younger respondents had used smartphones as their shopping channel of choice and 27% of respondents acknowledged that they have made payments on their cell phone in the past.

• The majority of South African consumers (88%) reported to be part of at least one loyalty program. This traditional method of reinforcing consumer-retailer relationships includes member-only discounts, reward points and free shipping to encourage consumers to shop from local retailers.

• Respondents from emerging markets (92%) were especially influenced by social media, compared to consumers from developed nations (66%). Of those respondents who had interaction with a brand on social media, 64% reported that it increased the respect and value they attributed to the brand.

• Consumers were found to be demanding innovation and an integrated omni- channel experience that enables them to shop from anywhere via their digital devices. Areas in which retailers can become leading innovators include the availability of products, delivery options and loyalty program categories. The On Solid Ground report by A.T. Kearney found that in the United States, physical stores continue to be the preferred shopping channel for many consumers as it is where the most value is created for consumers and they are able to touch and feel a product and immerse themselves in a brand experience (Global Retail E-Commerce Index, 2015).

To summarise: Digital and online technologies continue to disrupt the traditional retail industry with consumers across the world being more empowered and demanding. The global population is more connected and to benefit from this connectedness, consumers must know how to use the technologies available to them optimally. Retailers need to adapt and remain relevant, as the speed of technology adoption has increased the stakes for retailers. Increasingly, global retailers are willing to push physical and psychological boundaries and many are expanding into the South African market. Traditional South African retailers need to respond to the infiltration of international and online retailers if they want to remain competitive in the changing online shopping landscape. The following section, focuses on South Africa’s response to the online shopping retail environment.