A 2012 report from the African Economic Outlook organization predicts that South Africa’s economy will grow by 4.8 percent in 2013, fueled by various sectors such as tourism, mining, and legal services. The biggest challenge South Africa faces is attracting international companies to invest in the area. For online retailers to connect with the growing middle class in South Africa, the broadband and mobile infrastructure needs to be more dependable and widespread. There are plenty of indications that this is a key focus for South African leaders.
Despite challenges with communications infrastructure, both in-store and online retailers are closely monitoring this market. RNCOS Industry Research projects that the South African retail market will grow by about 7 percent by 2014. As the largest retail sector in Sub Saharan Africa, South Africa offers profitable investment opportunities for newcomers. With increasing income levels and low interest rates, innovative business models are driving higher demand for global retail products in the region. This has led to a growing consumer interest in convenient shopping options and popular global brands. The emerging middle class is keen to engage with the global economy.
As Africa’s taste for e-commerce and retail intensifies, international retailers can seize this opportunity to attract new customers and retain them as repeat shoppers – provided they can reach this audience in their preferred language. Businesses with the means to localize and tailor messages specifically to South African audiences increase the likelihood of building lasting brand loyalty. Here are some points to keep in mind when you approach this market:
- South Africa has 11 official languages, ranging from English and Afrikaans to Zulu and Swazi. The major tribal language of Sotho has two major subsets of language dialect. Additionally, there are several more unofficial languages spoken in this region. This linguistic complexity means that e-tailers must offer consumers a wide array of language choice in which to shop. Consider using a drop-down menu that allows the shopper to select his preferred language.
- South Africa’s history is both tumultuous and varied, and its culture reflects that. Many of the country’s Caucasian residents emerged from the colonialism of the 1800s. Further, the country was largely segregated by apartheid laws until the early 1990s. About 80 percent of the country’s citizens identify themselves as Christian; Islam and Hinduism come in a distant second and third, respectively. This history will become a factor as you select images and a voice for your localized website.
Experts agree that South Africa is clearly emerging as a target for e-commerce. If international brands show awareness and expertise in the array and usage of South Africa’s many languages and its evolving culture, they can reap the rewards of establishing an early presence in this market and build customer loyalty at lower entry level costs. You can be certain that cultural and linguistic expertise will be a critical component of the successful localization of e-commerce sites in this region.