Amazon's launch in SA will create more retail competition – economist
An economist says the arrival of Amazon in South Africa is guaranteed to shake up the online retail industry.
The e-commerce giant went live in the country yesterday.
Economist Dawie Roodt says as the largest online retailer in the world, Amazon will be able to capture a significant portion of the South African market.
“It's not going to be easy for Amazon because the biggest local player Takealot is very well established and understands the South African market very well. It's not going to be easy to eat Takealot's lunch so to speak. So, there's a fight coming between Takealot especially and Amazon.”
Roodt says consumers will benefit from fresh competition for prices.
“We're going to win here because these two giants will take one another on in the fight for dominance in South Africa and in the process, prices will come down and services will improve as well and we the consumers in the country will benefit from this. Of course, they are not the only online retailers that are playing big in South Africa. There are some Chinese online retailers in South Africa as well."
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