TMCnet News
More work ahead for e-tailers [ITWeb](ITWeb Via Acquire Media NewsEdge) E-tailers need to convert the propensity to buy into actual online purchases. As Kalahari and Takealot go public with their intention to join forces, analysts say SA's e-tailers still have a lot of work to do to translate a growing online audience into increased shopper figures. The companies yesterday announced (../index.php?option=com_content&view=article&id=138222:Takealot-Kalahari-join-forces&catid=118) their intention to merge, subject to approval from the Competition Commission. Takealot co-CEO Kim Reid notes Tiger Global and Naspers, the two e-tailers' parent companies, would own 41% of the new entity, with the rest divided among minority shareholders. "The timeline for the approval from the commission is somewhat unclear but we expect the deal to be approved towards the end of this year or early 2015," he says. Kalahari CEO Caren Genthner-Kappesz says the merged entity is braced for a fight to remain a frontrunner in the local market. "We need to ready ourselves for increased competition from international players, but also the local brick-and-mortar stores that are increasingly operating online. If we don't join forces, we will have a tough time surviving in such a dynamic and competitive market." World Wide Worx MD Arthur Goldstuck says, instead of widespread e-commerce market consolidation, SA could become a playground in which a few of the attractive smaller e-tailers are acquired by their larger counterparts. "I wouldn't be surprised to see the likes of [online gift shop] NetFlorist (http://www.netflorist.co.za/) and [homeware store] Yuppiechef (http://www.yuppiechef.com/) acquired as they are attractive prospects." Derek Wiggill, MD of mobile payment solutions company Zap Group, notes the merger indicates a gradually maturing market as more South African shoppers turn their attention "from bricks and mortar to clicks and mortar". He adds that the logistics of after-sales services, including delivery of goods, remains a challenge locally, "but joining forces helps overcome the challenge". grown steadily (../index.php?id=70515) at an annual rate of around 30%, it can be described as "healthy, but not robust". He says e-tailers "haven't been giving people compelling reasons to shop online". (c) 2014 ITWeb Limited. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info). |