Retail

Everyshop fails to take the fight to Takealot and Makro

Everyshop planned to become the best online store in South Africa and take significant market share from Takealot and Makro but has failed to achieve this goal.

Everyshop officially launched on 1 April 2021, offering a wide range of products through its online marketplace.

It is owned and operated by Steinhoff-owned JD Group, which owns several high-profile retail chains, including Incredible Connection, HiFi Corp, Sleepmasters, Bradlows, and Russells.

Through JD Group, Everyshop has access to over 500 leading international and local brands in over 160 categories.

It believed the extensive product range combined with its personalised experience and easy-to-use mobile and desktop sites would help it to win consumers away from Takealot and Makro.

New data from Google and Similarweb revealed that JD Group have underestimated what it would take to compete against Naspers and Massmart in the eCommerce market.

When Everyshop launched eighteen months ago, it enjoyed great coverage on prominent publications like MyBroadband and BusinessTech.

It helped the new online shop pique consumers’ interest who visited Everyshop to see what was on offer.

However, when the coverage of Everyshop dried up, so did the interest in the new eCommerce player.

The Google Trends chart below shows how interest in Everyshop has declined since its launch in April 2021.

One of the possible reasons for Everyshop’s failure to maintain its momentum after launch is its marketing strategy.

It spent much of its marketing budget on traditional advertising mediums like billboards, radio, and print (magazines and newspapers), which was a questionable strategy.

The plan was to introduce many South Africans who did not shop online to eCommerce and Everyshop.

This strategy was likely to backfire for a simple reason – before someone can spend money online, they have to be online first.

It, therefore, made sense for Everyshop to spend most of its money on online marketing where its potential clients were.

Its marketing strategy also failed to position Everyshop as a one-stop-shop for JD Group’s brands.

In fact, Incredible Connection’s website still attracts far more visitors than Everyshop, which illustrates its poor brand awareness.

The chart below, courtesy of Similarweb, shows how much bigger Incredible Connection (orange) is than Everyshop (blue).

Everyshop has an uphill battle to win market share from Takealot, Makro, Game, Superbalist, and other online players.

According to Similarweb data from July 2022 to September 2022, Takealot’s 44 million visits and Makro’s 16 million visits dwarf Everyshop’s 1.2 million visits.

Another concerning sign is that Everyshop is not gaining visitors. In fact, according to Similarweb, activity has been declining in recent months.

Apart from facing formidable local competitors, Amazon.com is also set to launch a marketplace in South Africa in February 2023.

Amazon is well-known for its aggressive prices and excellent service levels, which will make it even more difficult for Everyshop to compete.

The chart below shows how Everyshop’s traffic (blue) compares with Takealot (green) and Makro (orange).

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