Quick Commerce, also known as Q-Commerce, is a rapidly growing industry in South Africa. This market segment is defined by the delivery of goods and services within a very short period of time, often within an hour.
Customer preferences: South African consumers are increasingly looking for convenience and speed in their shopping experiences. With the rise of e-commerce and online shopping, consumers are becoming more accustomed to the idea of having goods delivered to their doorstep. This has led to a growing demand for fast delivery services, which Q-Commerce companies are able to provide.
Trends in the market: One of the main trends in the Q-Commerce market in South Africa is the rise of delivery apps. These apps allow consumers to order goods and services from a variety of retailers and have them delivered to their doorstep within an hour. This has led to increased competition in the market, as more companies look to enter the space and offer their own delivery services.Another trend is the expansion of Q-Commerce services beyond just food delivery. While food delivery remains the most popular Q-Commerce service in South Africa, other industries such as healthcare and beauty are also starting to offer fast delivery options. This is driven by the increasing demand for convenience and speed in all aspects of life.
Local special circumstances: South Africa has a unique geography and infrastructure, which presents challenges for Q-Commerce companies. The country has a large rural population and many areas are difficult to access. This can make it challenging for delivery companies to offer fast and reliable services in certain areas. Additionally, the country has a high crime rate, which can pose a risk to delivery drivers and discourage companies from operating in certain areas.
Underlying macroeconomic factors: South Africa has a growing middle class, which is driving demand for convenience and speed in all aspects of life. Additionally, the country has a high rate of urbanization, with more and more people moving to cities. This presents an opportunity for Q-Commerce companies, as urban areas are often the most profitable markets for fast delivery services. However, the country also faces economic challenges, including high unemployment and low GDP growth. This could impact the growth of the Q-Commerce market in the country in the long term.
Data coverage:
The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.Modeling approach / Market size:
Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.Additional notes:
The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.
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