Cyber Monday: Biggest online shopping day?

Cyber Monday, the online shopping extravaganza that follows Black Friday, has been a major event in the United States and other international markets. However, its impact and potential in South Africa are a topic of discussion. CNBC Africa recently sat down with Wayne McCurry, Portfolio Manager at FNB, to delve into the nuances of Cyber Monday and the online retail landscape in South Africa. When it comes to South Africa's participation in Cyber Monday, McCurry highlighted that the local market is not as robust as international markets. Major players like Naspers and Takealot are the primary contenders, with limited opportunities for local companies. McCurry emphasized that to truly benefit from Cyber Monday, investors may need to look at overseas online retail giants like Tencent and Amazon. While brick-and-mortar retailers like Foschini and Woolworths have e-commerce functionalities, McCurry noted that their online activities still represent a small percentage of their overall turnover. He explained that while online shopping is on the rise, events like Cyber Monday may not significantly impact the performance of traditional retailers in South Africa. Looking at the international perspective, McCurry pointed out that Amazon and Tencent are likely to be major contenders in the global Cyber Monday landscape. With Amazon's imminent presence in South Africa, local players like Takealot are preparing for increased competition. The profitability of online retailers, particularly in terms of delivery costs and margins, remains a crucial aspect that companies need to address to ensure sustainable growth. In terms of payment service providers, while there may be some benefits from increased online transactions during Cyber Monday, the industry remains intensely competitive. McCurry highlighted that online payments portals are a common offering from banks and cell phone companies, indicating a crowded marketplace where pricing strategies are still evolving. When discussing the role of food retailers in Cyber Monday promotions, McCurry noted that the impact was not as significant as seen during Black Friday. While food retailers like Checkers 60-60 offered competitive prices and deals, Cyber Monday has yet to reach the same level of consumer engagement as its predecessor, Black Friday. Overall, the discussion with Wayne McCurry shed light on the evolving landscape of online retail in South Africa and the varying degrees of impact that Cyber Monday has on different players in the market. As the e-commerce sector continues to grow, local companies will need to adapt to changing consumer preferences and competition from international retail giants like Amazon.