The COVID-19 pandemic has had a significant impact on the retail industry in South Africa, forcing businesses to adapt to changing consumer behaviours. According to the Smart Shopper study commissioned by Google, many customers are now making purchasing decisions predominantly online. Here are some key trends that businesses need to know:

Online Purchases Are Growing Fast

The study found that the online purchase share for slow moving goods, such as consumer electronics, home and garden, and fashion, has doubled year-on-year. In South Africa, lockdowns and travel restrictions have impacted shopping habits, with offline remaining the main purchase channel for fast-moving goods, which were still available in grocery shops and pharmacies. However, there has been a significant increase in online purchase share for slow moving goods.

More Buying Decisions Are Made Online

The study also found that more buying decisions are being made online, with shoppers spending more time discovering and researching what they want to buy online. Shoppers are also showing increased online product discovery and research, particularly on Search. In fact, the study revealed higher ad recall, in particular, if the ad exposure is aligned with other touchpoints, such as Search and online video.

Shopping Apps Are on the Rise

The study found that 35% of all South African consumers now have shopping apps installed on their phones, compared to 30% in 2019. These apps are a mix of retailer and individual brand apps. Shoppers are most likely to have apps from verticals including consumer electronics, home and garden, and fashion installed. Although purchases on mobile web still make up a bigger share than apps, downloads of shopping apps are rising, underscoring the demand for omnichannel options.

Loyalty Is Not Guaranteed

COVID-19 has accelerated digital consumer trends, with consumers’ shopping preferences shifting and buyers seeking out new products. Consumers who bought new brands or tried new retailers in 2020 were not overly concerned about quality or recommendations from other shoppers. Instead, convenience, price, and stock availability were at the forefront of purchase decisions. In fact, for shoppers in South Africa, speed was the most important factor of all. This makes it imperative for retailers to be clear about their brand promise, listen to customers’ needs, learn from their behaviour, and adapt operations accordingly.

Search and Video Play a Bigger Role in Online Product Research and Brand Choice

As they research their products online, shoppers have been using Search significantly more in 2020, across all categories. Retailer websites and apps, as well as online product videos, have also grown in popularity. The study advises businesses to keep aligning offers, marketing tactics, and campaigns, and prioritise mobile-friendly ad exposure experiences across creative, website, apps, and Search.

Pain Points Faced by Online Buyers Are Fluctuating

As online shopping continues to grow, it is important to note that more online shopping does not always mean fewer pain points. The study found that the volume of pain points faced by online buyers in South Africa fluctuated as consumer shopping evolves and online to offline category dependencies have increased. More consumer electronics and home and garden shoppers faced problems in 2020 than in 2019, whereas fewer food and beauty shoppers experienced problems. The majority of pain points were caused by registration or login needed to checkout, lack of stock availability, or technical issues in the purchase process. Retailers must prioritise offering frictionless experiences, such as allowing consumers the option to checkout as a guest, and ensuring users’ wish lists and baskets are synched to their accounts so information is available no matter which device they’re on.