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GENERAL METHODOLOGY OF MARKET REPORTS

Secondary Market Research

The reports are compiled based on secondary market research. Secondary research is information gathered from previously published sources. Our reports are

solely based on information and data acquired from national and international statistical offices, industry and trade associations, business reports, business and

company databases, journals, company registries, news portals and many other reliable sources. By using various sources we ensure maximum objectivity for

all obtained data. As a result, companies gain a precise and unbiased impression of the market situation.

Cross referencing of data is conducted in order to ensure validity and reliability.

The source of information and its release date are provided on every chart. It is possible that the information contained in one chart is derived from several

sources. If this is the case, all sources are mentioned on the chart.

The reports include mainly data from the last 12 months prior to the date of report publication. Exact publication dates are mentioned in every chart.

Definitions

The reports take into account a broad definition of B2C E-Commerce, which might include mobile commerce. As definitions may vary among sources, exact

definition used by the source (if available) is included at the bottom of the chart.

Chart Types

Our reports include text charts, pie charts, bar charts, rankings, line graphs and tables. Every chart contains an Action Title, which summarizes the main

idea/finding of the chart and a Subtitle, which provides necessary information about the country, the topic, units or measures of currency, and the applicable time

period(s) to which the data refers. With respect to rankings, it is possible that the summation of all categories amounts to more than 100%. In this case, multiple

answers were possible, which is noted at the bottom of the chart.

Report Structure

Reports are comprised of the following elements, in the following order: Cover page, preface, legal notice, methodology, definitions, table of contents,

management summary (summarizing main information contained in each section of report) and report content (divided into sections and chapters). When

available, we also include forecasts in our report content. These forecasts are not our own; they are published by reliable sources. Within Global and Regional

reports, we include all major developed and emerging markets, ranked in order of importance by using evaluative criteria such as sales figures.

Notes and Currency Values

If available, additional information about the data collection, for example the time of survey and number of people surveyed, is provided in the form of a note. In

some cases, the note (also) contains additional information needed to fully understand the contents of the respective data.

When providing information about amounts of money, local currencies are most often used. When referencing currency values in the Action Title, the EUR

values are also provided in brackets. The conversions are always made using the average currency exchange rate for the respective time period. Should the

currency figure be in the future, the average exchange rate of the past 12 months is used.

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METHODOLOGY OF THE CURRENT REPORT

Report Coverage

This report covers the B2C E-Commerce market in South Africa. It includes relevant information about international comparisons, market trends, B2C E-

Commerce sales and shares, Internet users and shoppers, products, payment methods, delivery and players.

Report Structure

The report starts with an overview of the B2C E-Commerce market and international comparisons, where the relevant country is compared to other countries in

the region in terms of criteria relevant to B2C E-Commerce, such as Internet and mobile penetration rates.

Next, the “Trends” section includes an overview of market trends, such as cross-border B2C E-Commerce, M-Commerce and online comparison shopping.

The section “Sales & Shares” covers the development of B2C E-Commerce sales and B2C E-Commerce’s share of total retail sales, including historical sales

and forecasts from various sources.

In the “Users & Shoppers” section, information about Internet penetration and online shoppers is included.

Afterwards, the section “Products” shows the leading product categories purchased online.

The next section, “Payment”, covers the payment methods most used by online shoppers.

Furthermore, the “Delivery” section covers information related to delivery in online shopping.

Finally, the “Players” section includes information about the leading E-Commerce companies, including a ranking of the most visited online shopping websites.

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DEFINITIONS

B2C E-COMMERCE the sale of products (and services) through electronic transactions via the Internet from businesses to

consumers.

B2C E-COMMERCE SALES the total sales generated either on the B2C E-Commerce market in a certain country or region, or the total

sales generated through B2C E-Commerce by a player on the market.

M-COMMERCE M-Commerce, also called “Mobile Commerce”, means the sale of products (and services) through electronic

transactions via mobile devices, such as mobile phones, tablets and smartphones.

CROSS-BORDER B2C E-COMMERCE the sale of goods (and services) directly to consumers in other countries, with orders made online through

foreign online shops and delivered from the country where the foreign shop is based or from a central logistics

facility, i.e. across the country’s borders.

INTERNET USERS the total number of inhabitants in a certain country that regularly accesses the Internet.

ONLINE SHOPPERS the total number of inhabitants in a certain country or region that participates in B2C E-Commerce.

ONLINE CLASSIFIEDS an online platform, where both consumers and businesses can publish small advertisements about the sale of

goods and services.

COMPARISON SHOPPING WEBSITES websites providing comparison functions, such as price and product features, among the offers of third-party

merchants and service providers (online and/or store-based); for the purchase of products such websites

usually redirect to the website with the respective offering.

OMNICHANNEL an approach to retail that strives to provide the customer with the seamless shopping experience across all

retail channels, such as in-store, online and mobile.

The following expressions and definitions are used in this B2C E-Commerce market report*:

Note: *the definitions used by the original sources might differ from the ones stated on this chart; the exact definition used by each source, where available, is included on the respective

charts

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TABLE OF CONTENTS (1 OF 2)

1. Management Summary

2. Overview and International Comparisons

• B2C E-Commerce Market Overview, May 2016

• Internet Penetration in South Africa, in % of Individuals, Compared to Egypt, Kenya, Morocco, Nigeria, 2014

• Internet Penetration in South Africa, by Age Group, Gender and Total, in % of Adults, Compared to Burkina Faso, Ethiopia, Ghana, Kenya,

Nigeria, Senegal, Tanzania, Uganda, May 2015

• Breakdown of Mobile Phone Ownership in South Africa, by Smartphone, Other Mobile Phone and No Mobile Phone, in % of Adults,

Compared to Burkina Faso, Ethiopia, Ghana, Kenya, Nigeria, Senegal, Tanzania, Uganda, May 2015

• Number of Mobile Phone Users in South Africa, in millions, and Mobile Phone User Penetration, in % of Population, Compared to Nigeria

and Egypt, 2013 - 2019f

• Number of Smartphone Users in South Africa, in millions, and Smartphone User Penetration, in % of Mobile Phone Users, Compared to

Nigeria and Egypt, 2013 - 2018f

3. Trends

• Breakdown of Internet Subscriptions by Type, in % and in millions, September 2015

• Breakdown of Devices Used to Access the Internet, in % of Internet Users, January 2016

• Devices Used for Shopping Online, in % of Online Shoppers, 2013 & 2014

• Shopping-Related Activities Carried out via Mobile Internet, in % of Mobile Internet Users, August 2015

• Share of Online Shoppers Who Check a Retailer's Flyer Online to Ensure They Get the Best Deal Prior to Purchasing, in %, October 2015

• Breakdown of Online Shopping Destinations, by Cross-Border and Domestic, in % of Online Shoppers, 12 Months to October 2015

4. Sales & Shares

• B2C E-Commerce Sales, in ZAR billion, 2014 & 2018f

• B2C E-Commerce Sales, in ZAR billion, 2015 & 2020f

• B2C E-Commerce Sales, in ZAR billion, 2012 - 2016f

• B2C E-Commerce’s Share of Total Retail Sales, 2014 & 2016f

• B2C E-Commerce’s Share of Total Retail Sales, 2011 - 2020f

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TABLE OF CONTENTS (2 OF 2)

5. Users & Shoppers

• Internet Penetration, in % of Individuals, 2010 - 2014

• Breakdown of Internet Users, by Age and Gender, in %, January 2016

• Activities Carried Out Online, in % of Internet Users, October 2015

• Share of Internet Users Shopping Online, in %, and Share of Internet Users Planning to Shop Online in the Future, in %, 2014

• Number of Online Shoppers, in millions, 2012-2014

6. Products

• Product Categories Purchased Online, in % of Online Shoppers, October 2015

• Top 3 Product Categories Purchased Online, in % of Online Shoppers, October 2015

7. Payment

• Payment Methods Used in Online Shopping, in % of Online Shoppers, October 2015

• Share of Online Transactions Paid with Credit/Check Card, in %, 2015e

• Share of Internet Users Who Do Not Shop Online Due to Lack of Trust to Online Payment, in % of Respondents, 2014

8. Delivery

• Key Drivers for Online Shopping, incl. Delivery, in % of Online Shoppers, 2014

• Share of Online Shoppers Who Are Concerned About Deliveries Arriving When They Are Not At Home, October 2015

9. Players

• B2C E-Commerce Players Overview, April 2016

• Top 10 E-Commerce Websites, by Website Rank, May 2016, incl. Category, Website Visits, in millions, April 2016, and Share of Traffic from

South Africa, 3 Months to May 2016

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1. Management Summary 09 – 11

2. Overview And International Comparisons 12 – 18

3. Trends 19 – 25

4. Sales & Shares 26 – 31

5. Users & Shoppers 32 – 37

6. Products 38 – 40

7. Payment 41 – 44

8. Delivery 45 – 47

9. Players 48 – 50

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Mobile Phone 61%

Laptop 14%

Tablet 12%

Desktop Computer 9%

Other Device 2%

Do Not Know 2%

61% of Internet users in South Africa went online via “Mobile Phone”

in January 2016. South Africa: Breakdown of Devices Used to Access the Internet, in % of Internet Users, January 2016

Note: based on data from 81,315 desktop and 198,702 mobile profiles from member sites of IAB South Africa

Source: IAB South Africa, Effective Measure, May 2016

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41%

42%

44%

0% 20% 40% 60% 80% 100%

Event Tickets (Concert, Sports Events, Theater, Movies,Exhibition, etc.)

Travel (Hotels, Flights, Car Rental, Travel Deals)

Books and Music

in % of Online Shoppers

Over 40% of online shoppers in South Africa were buying “Books and

Music”, “Travel” and “Event Tickets” online, as of October 2015. South Africa: Top 3 Product Categories Purchased Online, in % of Online Shoppers, October 2015

Note: only top three answers are ranked; does not add up to 100% due to multiple answers possible

Survey: based on a survey of over 13,000 consumers in 26 countries, incl. South Africa, conducted between August and October 2015; in South Africa, the survey was conducted

online

Source: Nielsen cited by The Marketing Site, March 2016

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