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Johannesburg - Views are varied among Fin24 users about whether the completed merger between local e-commerce brands Kalahari and takealot is good for SA's e-commerce space.
The merger between Kalahari and takealot reached its high point on Thursday night when the kalahari.com website was closed.
The Kalahari business has been folded into takealot after the Competition Commission earlier this year gave the green light for the merger, which is intended to boost the combined e-commerce unit’s scale.
READ MORE: End of an e-commerce era as Kalahari closes
Fin24 has asked users whether the merger between Kalahari and takealot is a good or bad move for SA’s e-commerce industry.
Fin24 user Ronnie van Reenen is positive about the move.
“I think it will expand the services of both companies and provide, us the public, with a wider range of offerings to choose from. Well done,” wrote van Reenen in an email to Fin24.
Other Fin24 users, though, have raised concerns about the merger.
Fin24 user Kim Kruger thinks the merger is “bad for SA e-commerce clients”.
“I have always done my e-commerce purchases on Kalahari since they were always cheaper than takealot. I can’t recall ever purchasing something from takealot in the last couple of years,” said Kruger.
Fin24 user Philip Patrick said “the merger takes out a household name (Kalahari) with a good and reliable track record”.
“It would be interesting to see if takealot hits reach and surpass Kalahari’s hits,” said Patrick.
Fin24 user Thea said the merger between Kalahari and takealot could be bad for competition.
“Nope, it is bad, bad, bad... .There goes the competition. Takealot, from my experience, is more expensive and with the merger, I'm sure that their prices will not drop,” Thea wrote to Fin24.
Fin24 user Elvira de Jager said her “family is not happy with the merger at all”.
“When going into Kalahari's website you liked everything about them - it’s user friendly and we always found what we looked for. Also many successful purchases and good prices! With takealot the website never impressed us and I haven't been able to find books and e-books successfully there that I was able to get on Kalahari,” said de Jager.
Fin24 user Joggie has also posed questions about the merger.
“Maybe it’s due to the fact that I’ve been living abroad for a number of years now (intending on returning to SA in the near future), but I have never heard of takealot.com. I’m not sure why management decided to go for a very generic, non-South African brand name rather than choosing to keep the (bigger) Kalahari brand name. Will the merger be bad for e-commerce in SA? Will it be bad for consumers? I would hope the Competition Commission has asked those questions already. Possibly not. Is it bad for Afrikaans e-commerce? I’m sure it is. I couldn’t find any Afrikaans on the new merged website,” Joggie wrote to Fin24.
“I do still occasionally shop online in SA (and since I got used to it living abroad, I’m sure I’ll continue when I’m back in SA), and while I would have paid slightly more for products just because they were sold on Kalahari (and I realise their website wasn’t completely bilingual, but at least there was an attempt), the new merged company has definitely now lost my loyalty. And possibly the loyalty of like-minded people...around the world,” Joggie added.
Fin24 user Robert de Rooy said “Kalahari had character”.
“It made you feel good to buy something online. Takealot is a name without any soul, and gives me an idea of the faceless funds that are driving the online monopoly,” de Rooy added.
Fin24 user Eugene has said naming choices are important for e-commerce brands.
“It will ‘takealot’ for the newbies to reach the standard and popularity of Kalahari. The name alone is definitely not appealing and does not lie as easily on the tongue. Names are extremely important - whether it is Amazon or Kalahari, the names come easily and has an appeal to much more than money and products. Takealot? Sorry, if that is what you are planning to do with my purse, Amazon will be my first stop. Who did the sums? How can a company with over a million persons support take over a company with a much larger support, better known and more loved, well advertised? You will have to ‘thinkalot’ before you will get my support!”
Meanwhile, Fin24 user Andrew Manderstam has said that overall “e-commerce is really in its infancy in South Africa”.
“As a foreign businessman based in Johannesburg I was amazed at the very restricted inventory offered on the site (Kalahari), as compared to Amazon for instance. I did order one item and it was promptly and efficiently delivered, however the Kalahari site itself was old fashioned and not user friendly. I suspect that if any of the large US or European operators ever set foot here, the local companies would be decimated! Hope I am wrong,” wrote Manderstam.
Finally, Fin24 user Lena said “it's such a pity that the Kalahari brand is disappearing”.
Lena also said that she thinks “the merged company has made a bad strategic decision”.
Response from takealot
E-commerce website takealot has introduced a frequently asked questions section on its website which outlines, for example, how accounts have been migrated in the process and how takealot plans to sell e-books.
The takealot team has also responded to Fin24 users’ concerns with this statement.
READ MORE: Why the Kalahari brand was discontinued
“The decision of which brand to choose post the merger has not been an easy one to make. The Kalahari brand has been associated with e-commerce for many years. When taking this decision we looked at the momentum of the two businesses and brands. It may surprise many but takealot.com continues to grow at a tremendous rate and passed Kalahari traffic in December/January 2015. The decision to change the brand was therefore one based upon pure momentum,” takealot told Fin24 in an email.
“The decision to close the Kalahari site was based upon economics and the continued ability to innovate into the future. Takealot’s website is developed internally while Kalahari’s is built using various licensed platforms which are costly and difficult to innovate on.
“Although the takealot brand is not as old as that of Kalahari's it has a very credible growth and customer service track record that we are very proud of. Takealot has been built upon the simple concept that the customer comes first and we will continue to focus on the customer while we build the brand and business. We welcome all ex Kalahari customers and hope that they will find a new home with us,” said takealot.
