We have repeatedly covered Rocket Internet’s operations in SA as they aggressively go after ecommerce market share. We have now learned that they have also started targeting another one of Africa’s biggest economies, Nigeria.

TechLoy has reported that Internet giant Rocket Internet has confirmed that it will be launching an Amazon clone in Nigeria this month. The company has already launched an Amazon-clone called Lazada in Indonesia, Egypt, the Philippines and Thailand recently.

Rocket Internet has a track record for cloning existing popular web companies across the Middle East, Asia, Africa and South America including Airbnb and Zappos. In February, Rocket Internet launched Zando in South Africa, selling popular clothing brands in the local market. While the name of the new clone-site still remains uknown, it will sell items similarly found on Amazon including DVDs, books, electronics and games.

As part of its preparations for the Nigerian launch, Rocket Internet are reportedly recruiting local staff for its operations based in Lagos and are likely to take on some of the former employees of Kalahari Nigeria that was shut down last October by parent company MIH Internet Africa.

DropGifts, a startup developed by German-based Internet company Rocket Internet, is coming to South Africa.

DropGifts is a social gifting tool that allows people to give personalised gift cards to their friends through Facebook. Gift cards received can then be redeemed by the recipient for any item in the retail store in which it was purchased.

DropGifts, that claims to already be a market leader in the UK, Germany and France, and has also launched in Italy,  is currently in its second phase of its international roll-out. With a high Facebook penetration, South Africa was chosen as part of the second rollout and will be launched locally by the end of the first quarter of 2012.

Kevin Tucker, MD of DropGifts South Africa said, “We’re very excited about launching in South Africa. Most international companies don’t see the benefit of launching here, but with the relatively high number of Facebook users, South Africa is, in fact, a perfect market to launch DropGifts.”

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Dave Perel, Obox Themes co-founder recently announced on twitter the launch of a new local startup called QikCommerce.

Ladies and Gentlemen: Introducing QikCommerce, the quickest and easiest way to setup an online shop qikcommerce.com

— David Perel (@obox) March 15, 2012

There is no doubt that there is an upturn in e-commerce in South Africa with industry experts all agreeing that e-commerce is on the rise. Recent findings from experts including Arthur Goldstuck of World Wide Worx, Kalahari.com and the DMMA have all found that the industry is growing at a rapid rate, with more people accessing and becoming comfortable with using e-commerce websites every single day.

Internationally, 600 billion Dollars is spent every year on buying goods online with more than 80% of the Internet population having used the Internet to make a purchase. In terms of numbers that means there are 178 million online shoppers in the USA alone. Locally the e-commerce industry is also on an upward curve with a reported growth rate of 30 to 35% every year. The current total sits somewhere in the region of 2 billion South African Rand being spent per year, with 46% of online retailers claiming that they are very profitable.

Even more important is the attitude of people towards the industry with previous fears like security and credibility, a serious stumbling block. However, it seems that people’s attitudes are changing, with 44% of people claiming that e-commerce has improved their quality of life. Reasons given include saving time, having fun shopping online and causing them less stress than traditional retailers.

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Mercado Libre meaning “free market” in Spanish and eBay’s Latin American partner is an online auction and e-commerce site based in Argentina. Established in 1999 their brand new office space was recently completed by architecural and design firm Contract Argentina.

Overall the relatively open-plan space is clean and uncluttered achieved by a combination of simple white furniture, wooden benches and glass screen dividers. The space has been designed to create working spaces for different numbers of employees. Large boardrooms are ideal for more formal meetings while smaller boardrooms provide space for group projects or brainstorming sessions. Spaces divided with glass screens holding benches, tables and chairs serve as smaller or even single working areas. The office manages to create a sense of privacy and transparency simultaneously.

Colourful wall illustrations add an element of fun and creativity with comfortable couches, cushioned benches and pillows offering the prefect spots for chilling. The cafeteria, filled with large white couches, wooden tables and benches and a flat-screen TV creates the perfect communal area for a break.

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According to a survey conducted on News24 by PayU, 77% of respondents stated that they believed online shopping was the way of the future. A further survey, conducted by online shopping site Kalahari.com, revealed that 31% of shoppers said they chose to shop online for Valentine’s Day and NetFlorist, an online flower and floral shop, experiences an approximate 59% profit increase each February.

Wayne Gosling, joint CEO of online group buying company Groupon SA, says there is a need for online companies to recognise the increase in sales and public interest in romantic deals around Valentine’s Day. “As shown by previous holiday sales, we’ve realised our service is one that people like to utilise especially over romantic holidays to experience things in their city that they wouldn’t normally know about; let alone get to try.”

Groupon SA offered a variety of options to romantically-minded customers, including a night away or a helicopter ride for two, jewellery and spa Groupons. This kind of variety is essential to ensure successful online retailing, Gosling believes. “Online shopping offers creativity at your fingertips,” he says. “Whereas previously one would have to spend hours searching for the right gift for the right situation – now it’s a matter of simply following a few links; it removes all hassle.”

Jewellery retailers have reported selling an increased number of diamond engagement rings: Sterns and American Swiss, both controlled by the Foschini Group, said Valentine week sales swelled by as much as 50% above normal.

Yumna Ebrahim, from economic analysis firm Econometrix, believes that the country’s prosperity over Valentine’s week can be attributed to South Africa’s economic resilience in comparison to retailers in the UK and US following the global recession.

According to Ebrahim, impulse shopping over the festive season, followed by favourable interest rates, could have a sustained positive effect on prosperity and consumer spending in South Africa.

With a number of price comparison sites already available for consumers in South Africa like ShopMania, Shopbot and PriceCheck that was acquired by MIH, the investment arm of Naspers in 2010, websites like these are certainly not a new concept but one that has potential for improvement. Jump Shopping, an online shopping search engine itself, aimed to do just that with the launch of its latest initiative, FindPrice.

FindPrice was launched to align the requirements of consumers with that of E-Commerce shops by listing products of South African online shops in one convenient location. As E-Commerce in South Africa continues to grow with so much potential, Jump Shopping noticed a shift in online consumer trends over the last few years and observed a few key aspects of the online shopping industry, focusing on how shoppers interact online and what they want from a price comparison website. A key finding was that with with so many online shops offering great deals it was difficult to keep track of them all and so Jump Shopping wanted to provide the solution. Enter FindPrice.

As a result of this shift, managing director of Jump Shopping Jaco Roux explains, “We were faced with the option to adapt or be left behind. The choice was easy. We didn’t want a face-lift. We wanted a fresh start and the ability to do it right from the start. Data quality and user experience is the key focus of FindPrice. Give the consumers what they want in the most convenient manner and it will lead to more sales and a stronger E-Commerce economy.”

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European internet giants, Rocket Internet, has arrived in South Africa and are intent on launching a few of their most successful brands in our local market. Zando, is one of their first products – a fashion ecommerce play – that allows customers to order a variety of fashion items such as shoes, apparel and accessories online. Zando was initially inspired by Zappos.com which was acquired by Amazon.com in 2009.

Eugen Petersen of Zando explains, “What do many retail stores have in common – a limited fashion selection, long queues and often they don’t have the correct size. With Zando our aim is to provide South Africans with the same hassle-free shopping experience that millions of shoppers around the world already enjoy. We seek to be more than a traditional online fashion store but rather a place where customers’ needs are both understood and satisfied.”

The process works similar to that of other online fashion sites extremely popular in the European market.  Once you have selected the item you want, you pay for it and place the order. Shipping is free to any location countrywide. When the courier arrives with your goods you can try on everything you ordered in the different sizes you may have selected and send back what you don’t want. Once they have received the items, you are reimbursed for your purchases.

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