subscribe Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Subscribe now
Picture: REUTERS/DADO RUVIC
Picture: REUTERS/DADO RUVIC

When Amazon announced its entry into SA, players in the online retail space were initially concerned. Before the arrival of the North American giant much energy was devoted to forecasts predicting that Amazon’s proven success and scale would allow it to dominate, potentially cannibalising local competitors and luring customers with promises of competitive prices and an integrated ecosystem of services and products. 

Yet, eight months after its arrival, Amazon has failed to make the expected impact. Much of Amazon’s lower-than-anticipated market penetration can be attributed to two key aspects of natural evolution: first, a dominant predator in one ecosystem is not necessarily suited to others and must still adapt to survive, and second, existing players possess their own agency, allowing them to proactively adapt. 

This shows us that despite initial concerns about the entry of large foreign multinationals into SA’s markets we should never rush to assume the worst. Competition from the likes of Amazon is ultimately beneficial for the industry — and for us as consumers — offering better products at more competitive prices.

Local players simply need to remember that with continued digital innovation, as well as an adept knowledge of their own market, they will have the advantage that is needed to compete, survive and thrive under these market conditions. 

Daniel Novitzkas
Chairman, Specno

JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.

subscribe Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Subscribe now

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.