TA K E A L O T
TAKEALOT
Customer Care Is Key to
Takealot e-Dominance PRODUCTION: Timothy Reeder
“Takealot.com’s mission is to be the most customer-centric online shopping destination in Africa.” This is Takealot in a nutshell, and the e-commerce giant has laid immovable foundations based on a simple concept: the customer comes first. Constant new initiatives, excellent rewards programmes and superlative customer service combine to grow and retain a loyal consumer base, even as other major players awaken to the possibilities the country has in the online retail space. www.enterprise-africa.net / 3
INDUSTRY FOCUS: RETAIL
//
Takealot.com was officially launched in June 2011, when the very concept of online shopping was still entirely in its infancy in South Africa. Its establishment followed the successful acquisition of an existing e-commerce business - Take2 - by the US-based investment firm, Tiger Global Management and Kim Reid in October 2010, and today, takealot.com is SA’s leading e-commerce retailer and one of the largest, most innovative e-commerce retailers on the whole African continent. “The business was initiated with a simple vision in mind: To be the largest, simplest, most customercentric online shopping destination in Africa.” Takealot’s starting mission was a familiar one, but one from which it has never strayed and, as a result, it has rapidly evolved since inception to open and expand warehouses in Johannesburg, Durban and Cape Town. Department selection has experienced a similar blossoming, to now include over 21 across Electronics, Lifestyle, Media and Gaming, and Fashion. “Our business is retail, and we strive to have the widest range of
// WE UNDERSTAND THAT CUSTOMERS PREFER ALTERNATIVES TO DELIVERY AND HAVING SPECIFIED LOCATIONS FOR BOTH COLLECTION AND RETURNS AT A TIME CONVENIENT FOR THEM IS AN ADDED BENEFIT // 4 / www.enterprise-africa.net
products and the best possible customer service on the African continent,” Takealot lays bare. “We’re doing it by employing great people and developing innovative, cuttingedge tech.” GROWTH AND DIVERSIFICATION In a comparatively brief history, the Takealot story has been marked with frequent important milestones. 2014 was a truly pivotal year, as it heralded firstly a $100m investment from Tiger Global, quickly followed by the purchase of Mr Delivery. This was vital in giving the then fairly nascent business ownership and control over its own logistics network, through the Takealot Delivery Team division and its own app-based on-demand food delivery service through the MR D Food division. 2014 continued with the successful acquisition of Superbalist. com, a curated design and fashion website, and culminated in the announcement that Naspers-owned Kalahari.com was to merge businesses with takealot.com. The completion of the merger served to build the premier online shopping destination in Africa, with all Kalahari customer accounts successfully transferred over at the beginning of May 2015. Naspers then increased its investment in takealot.com to 96% at the start of 2018. A global internet group and one of the largest technology investors in the world, in its own words, Naspers sets out to, “build leading companies that empower people and enrich communities.” Later on in 2018 two other members of the Naspers family, Superbalist.com and Spree, merged to provide customers with the latest ontrend local and international fashion. “We believe in the power of local backed by global scale,” Naspers says, “and we look for opportunities to address big societal needs in markets where we see the greatest growth potential.”
E-COMMERCE EXPLOSION With a population of 55.5 million, South Africa has a 54% internet penetration total, with a substantial middle class and perhaps the best cross-border potential of any African country. This is integral to making it such a lucrative prospect for online retailers and merchants, and has entailed a sizeable explosion of e-commerce in the country in very recent years. Back in 2018, fin24 reported what was being roundly identified as a, “massive growth opportunity in the digital commerce sector,” with e-commerce estimated to have amounted to some R10bn during the previous year, according to Geraldine Mitchley, Visa senior director for digital solutions in sub-Sahara Africa. The growth was powered by high mobile penetration, rising consumer confidence in online transactions and the expansion of retailers into the online sphere by adopting a multichannel approach. The lack of physical retail infrastructure in most of Africa has created a favourable environment for cross-border e-commerce. “Local internet retailers are modifying channels to be able to add more value for their consumer base. They are simplifying and improving accessibility and offering more benefits,” Mitchley delineated. “Companies are eagerly implementing a variety of digital initiatives to transform the customer experience, and the digital agenda is top of mind for retailers. Our research showed customers want speed, simplicity and they want the process to be safe. “The SA internet retail market is in its infancy by global standards, but even so, retail players are increasingly operating on omni channels,” she explained. E-commerce growth has continued to outstrip even the most optimistic forecasts ever since, with BusinessTech telling at the beginning of 2019 of the
or
92 million litres of fuel
INDUSTRY FOCUS: RETAIL
more than R14 billion that online retail had generated last year according to World Wide Worx’s Online Retail in South Africa study. The 2018 figure represented 25% growth over 2017 and came as something of a surprise, given the widespread predictions that online retail growth would slow down to below 20% by 2018. Forecasts have been beaten as a result of massive investments in online retail, aggressive marketing, and the rapid uptake of new shopping channels like mobile shopping
// NOW, TAKEALOT. COM IS SOUTH AFRICA’S LARGEST, MOST INNOVATIVE E-COMMERCE RETAILER // 6 / www.enterprise-africa.net
and Instagram. “Furthermore, most established online retailers have enhanced their digital presence and refined their fulfilment models,” World Wide Worx explained, “while many traditional retailers are starting to see significant growth in their online offerings. It is not unusual to see growth rates of between 25% and 50% reported by individual online retailers.” ALL ABOUT THE CUSTOMER Takealot knows that if it wants to keep its spot as the number one choice in Such Africa’s goldmine of an e-commerce market, it has to make its customers feel valued, safe and well-served. “We are all about our customers,” Takealot effuses. “We want to be the most customer-centric online shopping destination in Africa – to make online shopping so easy and seamless that everyone will feel comfortable doing it. “We want to know our customers.
We want to be a part of their lives. We want each experience they have with us to leave them with a smile, whether it’s a confirmation email, an added detail on the packaging or even the return of an unwanted or damaged order.” A key aspect of retaining customer loyalty and earning the invaluable recommendations which help expand a consumer base has been Takealot’s implementation of eBucks Rewards. Originally launched in October 2000 as a FirstRand Group e-commerce initiative, today eBucks Rewards is one of South Africa’s most aspirational rewards programmes, focused on delivering real and meaningful value to partners and members alike. FNB and RMB Private Bank’s programme enables buyers to earn eBucks for everyday tasks, like online, shopping, which can then be spent on fuel, electronics and appliances, travel, books, CDs
TAKEALOT
// WE WANT TO BE THE MOST CUSTOMER-CENTRIC ONLINE SHOPPING DESTINATION IN AFRICA // and DVDs - pretty much anything imaginable. “With eBucks Rewards you save money every time you spend,” is the core concept. “This means you can do more and get more for less.” In April this year, Takealot sought to fine-tune the customer experience by one more degree through the opening of 25 collection points, dotted across South Africa. The Takealot Pickup Points provide an ideal alternative to having an order delivered to the home or office, and include 14 in Gauteng. The flagship in Midrand spans the busiest highway in Africa and uses a mix of technology and automation to ensure shoppers are able to collect as quickly as possible. “We understand that customers prefer alternatives to delivery and having specified locations for both
collection and returns at a time convenient for them is an added benefit,” explains CEO Kim Reid. “We are expecting these to add value to our customers and our business. They will shorten delivery leadtimes and add another dimension of customer convenience.” Reid told MyBroadband that such was his faith in what Takealot is doing, even potential competition from Amazon or Alibaba entering the South African e-commerce space does not unduly trouble him. While recognising the power of these colossuses, he also underlined Takealot’s huge advantage by being on home turf. “If you look at what is happening in India today, Walmart has bought out Flipkart and it is competing head-to-head with Amazon,” said Reid. “There is no reason
why you cannot compete against Amazon and Alibaba.” After all, having been in on the ground floor with South Africa’s embrace of the power of online retail, it will take a lot to shift it from its perch. “Now, takealot.com is South Africa’s largest, most innovative e-commerce retailer, with over 2000 employees,” it hammers home. “At the core of everything we do is our customer. We are passionate about providing great customer experiences […] until the product you order is delivered safely into your hands.”
WWW.TAKEALOT.COM
www.enterprise-africa.net / 7
CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © CMB Media Group Ltd 2019
THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS
AFRICA
Published by CMB Media Group Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Rouen House, Rouen Rd, Norwich NR1 1RB T. +44 (0) 1603 855 161 E. info@cmb-media.co.uk www.cmb-media.co.uk
November 2019
www.enterprise-africa.net
Prommac Positions Itself at
Forefront of Innovation Exclusive interview with CG Holdings CEO Jason English ALSO IN THIS ISSUE:
Logicalis South Africa / Momsen Bikes / Brights Hardware / Singita
AS FEAT UR ED IN
ENTERPRISE AFRICA
NOVEMBER 2019