A recent Cisco study on the Internet behaviour of young South Africans shows the so-called "Generation Y" (18- to 30-year-olds) shop online, with 63% purchasing up to 24% of goods on retail Web sites.
As South Africans begin to spend more in the lead up to the festive season, the 2012 Cisco Connected World Technology Report (CCWTR) reveals that over two-thirds of the surveyed South African respondents rely on Internet retail sites to do their shopping.
The study also shows 59% will share their e-mail address to get discounts and sales notices, and 65% rely on customer reviews for online shopping, although 82% do not trust most Internet sites to keep data secure.
Alpheus Mangale, MD of Cisco in SA, says online shopping has become increasingly popular in SA, although the country is only now catching up with the rest of the world. "The findings of this research demonstrate this."
Mangale says the shopping trend is set to grow "from strength to strength", given the increased convenience and flexibility it offers consumers.
SA methodology
The local results are based on a survey commissioned by Cisco of 1 800 Generation Y university students and young professionals, across 18 countries.
The CCWTR examines how this generation uses the Internet to connect with the world around them.
Cisco says this scrutiny ultimately reveals the generation's behaviours, attitudes, issues, and concerns about the creation, access, management, and privacy of the enormous amounts of data being generated daily by smartphones, sensors, video cameras, monitors, and other connected devices.
Report highlights
Key highlights of the report include:
* Privacy versus coupons and discounts: Cisco says nearly 60% of South African respondents are willing to share their e-mail address with stores and online sites in order to receive notices about discounts and sales. "However, a very small percentage of these consumers would be willing to share their phone number, home address, or similar information."
* The importance of online reviews: 65% of respondents report using online reviews at least occasionally when making purchasing decisions. However, says Cisco, of all the consumers surveyed worldwide, South Africans were found to be least likely to use online reviews prior to making purchases, as more than one-third indicated they rarely or never do so.
* Tracking and analysing consumer activity: According to Cisco, the growing interest and reliance on Internet retail sites means there is an increase in online data, presenting greater opportunities for marketing and sales campaigns that are based on analysing, correlating, and cross-referencing consumer data. "Big Data analysis is being adopted at a rapid rate by retailers, both for retail stores and online sites. Almost half of the South African respondents are conscious that many stores are likely to track and analyse customer activity and shopping habits, but most express their disapproval of the idea. A quarter of the respondents was unaware of such monitoring and also expressed their distaste for it."
* Lack of consumer trust: Although consumers "love the convenience of online shopping", according to Cisco, four out of five Generation Y respondents, globally, stated they do not trust most Internet sites to keep their private data safe.
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