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A new era for online shopping as Amazon expands product range in South Africa
A new era for online shopping as Amazon expands product range in South Africa

IOL News

time04-06-2025

  • Business
  • IOL News

A new era for online shopping as Amazon expands product range in South Africa

Amazon has expanded its product offerings in South Africa, introducing groceries, pet food, and health supplements to compete with established retailers Image: File Just more than a year after landing on South African shores with a . domain, Amazon has expended its product range to take on entrenched retailers who have had a virtual presence since the COVID-19 lockdown spurred online and app-based shopping. started as a bookseller in 1995 out of founder Jeff Bezos's garage and, at launch last May, was set to compete with Takealot, and Makro. And now it's playing in the food and over-the-counter medicinal product space. In what the company said on Wednesday is a 'major milestone in Amazon's growth in South Africa,' it stated that it had added groceries, pet food, vitamins, and supplements to its offerings. Adding these categories, it said, 'brings thousands of new non-perishable food items, pet food products, and health supplements to customers across the country'. Amazon's new selection includes both international favourites like Nestle, Red Bull, and Starbucks, and beloved local brands like Beacon, Simba, and Koo, catering to the diverse needs of South African households. The e-tailer, which is globally the fourth most valuable company with a market capitalisation of $2.18 trillion, operates local websites in various countries, including Australia, Canada, India, and Mexico. The 2024 World Wide Worx report, sponsored by Peach Payments, Mastercard and AskAfrika, shows that South Africa's online retail surged to R71bn in 2023, with projections that it will surpass R100bn by 2026. Robert Koen, Amazon MD for sub-Saharan Africa, said, 'since our launch, we've been listening closely to customer feedback, and groceries, pet supplies, and health supplements have consistently been among their top requests'. Early data indicates strong customer interest across all three categories. In groceries, coffee, tea, cereals, pasta, cooking oils, and canned goods are emerging as top sellers. The pet food selection, which includes options for dogs, cats, birds, fish, and small animals, has seen particular demand for premium pet nutrition brands and specialty formulations, said Amazon. Amazon added that the vitamins and supplements category has attracted health-conscious consumers with its comprehensive range of multivitamins, minerals, sports nutrition, and specialty supplements. On launch, the e-tailer said it sought to support local independent companies and, to this end, hosted its inaugural Seller Summit, bringing together over 300 local entrepreneurs at its Cape Town headquarters last month. More than 60% of global Amazon sales stemming from independent sellers. This was preceded, last September, by 'Shop Mzansi', a curated storefront on showcasing unique local products that reflect South Africa's rich and diverse cultures. 'Shop Mzansi' features thousands of products across different categories – including toys, home and kitchen appliances, outdoor and braai, baby, luggage, and beauty. 'Shop Mzansi showcases more than 160 brands from new, emerging, and established South African businesses, each with their own unique story,' Keon said at the time. He added that it will continue adding to the Shop Mzansi selection as it onboard more sellers and helps them list their products. More than 60% of sales in Amazon's stores globally are from independent sellers – most of which are small- and medium-sized businesses. IOL

South Africa: Spar's strategy to boost private label sales
South Africa: Spar's strategy to boost private label sales

Zawya

time25-04-2025

  • Business
  • Zawya

South Africa: Spar's strategy to boost private label sales

Across the globe, private label products have evolved from being budget alternatives to strategic tools for customer retention, brand differentiation, and economic inclusion. In South Africa, where the cost of living continues to climb and brand loyalty is being redefined by value, quality, availability and affordability, tahe private label opportunity has never been more urgent – or more promising. Analysis by NielsenIQ during the Covid-19 pandemic has revealed that private label goods commanded a remarkable 24.3% of total basket value sales in South Africa, amounting to R71bn annually. Consumer intelligence group NIQ predicts this figure is set to surpass R100bn within the next 6-12 months. According to Euromonitor International, a substantial portion of consumers who purchase store brands for the first time tend to continue using private label goods. The 2022 Voice of the Consumer lifestyle survey noted that 21% of global respondents plan to increase their purchases of private-label products—the highest level recorded in the past six years. It is unsurprising that private-label sales have experienced a 30% growth worldwide since 2020. Spar Southern Africa is positioned to capture a large share of this market, targeting 28-30% of sales from in-house brands over the next three years. This ambitious growth will be driven by competitive pricing, a tiered product range to suit all budgets, and a steadfast commitment to quality that rivals national brands. At Spar Southern Africa, we believe the future of retail is not just about what's on the shelf, but how we innovate to meet people where they are. Currently, private label products represent 23% of our sales, and we are committed to expanding this by offering solutions tailored to all tastes and budgets - delivering on our promise of 'as good as the best for less'. Spar's private label strategy over the past year reflects this ambition and we plan to accelerate this progress over the next few years. A reinvigorated strategy includes: - Signature Selection: A top-tier range of products for the discerning shopper. - Spar: A mid-tier range focused on delivering value. - SaveMor: A budget-friendly option for price-sensitive shoppers, ensuring affordability with acceptable quality. With rising living costs and job insecurity set to accelerate due to geopolitical uncertainties and the VAT increase, Spar is gearing up to lead the private label market, addressing a critical need for quality and affordability by cash-strapped consumers. In rural communities, which account for nearly half of our business, we intend to drive local growth through our SaveMor store and product brands. Approximately 90% of our private label products come from local suppliers rather than large corporates, making this a powerful driver of economic upliftment and opportunity. With our ongoing commitment to sourcing, supporting, and strengthening local businesses, we aim to increase our private label brand sales, in and out of our SaveMor stores, to serve our retailers and shoppers better. By continuing to support entrepreneurs, farmers, and suppliers throughout the supply chain, we will continue to drive job creation across the country. Optimising supply chain efficiency by collaborating closely with manufacturers on accurate forecasting will aid supplier planning and raw material procurement. We will also utilise The Spar Group reverse logistics assets on return vehicle delivery legs to improve efficiency and reduce transportation costs – enable us to pass off savings to shoppers where we can. For the high-end market, our bespoke gourmet offering set to launch later this year, alongside our Spar Signature Selection private label product range, will underline Spar's dedication to excellence across all market tiers. Achieving success will require focus, an innovative mindset, determination and being 'always on'. Strong supplier partnerships are also critical to the success of any private label programme. This fosters long-term, personalised relationships with suppliers through collaboration on innovation and cost-saving strategies to drive value. With these strategic initiatives in place, businesses can strengthen the private label market while providing quality and value to shoppers. Spar believes it has the right strategy to build on the significant private label momentum and demand we are experiencing. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (

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