eCommerce: To Compare How Online Business-to-consumer retailers Build Their e-Brands to Become Competitive Players in Their Respective Markets.

Abstract

ECommerce News (2013) predicts that South Africa will grow at a rate of 20-25% for the next 3-7 years which indicates that online retailing is an emerging market in South Africa. The growth potential can be attributed to growing wealth and the increased middle class consumer as well as better broadband availability. The South African eCommerce market is lagging in growth compared to developed markets worldwide. While South African e-brands are still attempting to conquer the local market, with the exception of Yuppiechef and Zando, American businesses are looking abroad for opportunities for growth. United States of America is the top eCommerce country in the world in terms of turnover, achieving a $419 billion in turnover for 2013. With this being said, America is also the most popular country in cross-border B2C eCommerce (North America B2C ECommerce Report, 2014). This provides reason for the researcher to compare these two business markets, the developed American market and our developing South African market. The researcher would like to establish whether there is potential for growth in this industry or if the market will continuously be dominated by a few e-brands, who are currently at the forefront of South Africa’s eCommerce. The four online stores selected as case studies are highly competitive in their respective markets and have their own strategies and reasons for success. The markets in which they operate in have their own trends and the consumers within these markets have their own perceptions, habits and preferences for making online purchases. The online shopping industry and e-brands have to work a lot harder to make a success of their virtual businesses. The element of physical touch and physical store is non-existent which makes the virtual experience that brands provide their consumers, vital to its success. E-tailers have to ensure each feature and touch point with a consumer is memorable and that they deliver a great experience overall.