Google remains bullish on e-commerce in SA

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Speaking at eCommerce 2013 Conference, Luke McKend, country director for Google South Africa, says the company expected SA's internet spend to grow 25%-30% next year, despite the global economic downturn.

E-commerce refers to the selling and buying of goods and services through electronic means such as computers, phones and tablets.

McKend's view is in line predictions of a recent study conducted by Arthur Goldstuck's World Wide Worx Commissioned by Google South Africa.

The study, entitled, Internet Matters: The Quiet Engine of the South African Economy, states that e-commerce is growing at a rate of around 30% a year, "with the growth showing no signs of slowing down".

The total online spent by consumers, small businesses and government "on products and services via the Internet, as well as on Internet access and infrastructure, is R59bn", the study shows.

McKend told about 400 delegates at the e-commerce conference on Wednesday, 11 September 2013, that "more people are coming online and this should continue".

Smartphones are expected to play a dominant role in e-commerce activities, with McKend pointing out that mobile phone penetration in South Africa is forecast to rise 80% next year.

"Smartphones are embedded into our daily lives," he says and adds that consumers now use Google search more from their phones than from desktops.

McKend says the key challenge in building a success of ecommerce venture, and even a brick-and-mortar business, is "delivering on promise".

On expansion, McKend says there are "huge opportunities" for growth, north of SA's borders.