JONATHAN HURVITZ: Want it? Just sign up for it

Rapid advances in technology have delivered a host of lifestyle, work and entertainment products and services that make our lives easier and more enjoyable. However, as inflation outpaces the average South African’s disposable income, only a small portion of the population can afford to enjoy the best of these.  

Recent years have seen a boost in online shopping. Various factors, including advances in technology, more agile business models, convenience, and the pandemic as a catalyst, have expanded the range of products available online and consumers willingness to shop virtually.

From groceries and to vehicles to large appliances and electronics, people across the income spectrum are growing more comfortable shopping online. Data from e-commerce platform Shopify has shown a steady increase in the share of retail sales via e-commerce, from 7.4% in 2015 to 18.8% in 2021. The company forecasts e-commerce will reach 24% of all sales by 2026.

In 2022 the top e-commerce categories in the US were computer and consumer electronics, apparel and accessories, and furniture and home furnishings.

Rampant inflation

It’s safe to say that the prices of household appliances are going through the roof. Everything, from televisions, refrigerators, washing machines and even beds, is becoming more expensive almost daily.

Not only are increases in the average wage failing to keep up with the recent acceleration in consumer inflation, but manufacturers, dealing with their own supply chain issues, continue to raise prices.

That means a young professional moving to a new city on a two-year job contract may be faced with just two options: be content with a bare living space, or take on huge debt to acquire basic household appliances, furniture and entertainment technology.

Buying a list of costly items for cash or on credit in one go isn’t an option for most people, especially when looking for the best in class. Even for those who are able to save, the process can take months (if not years), which is not tenable when an item is needed urgently.

A new way of “buying”

Now, with the growth of e-commerce, consumers need not be beholden to a single store’s products, nor should they feel obligated to use a single method of purchase.

Newer models enter the market every day, offering new functionality, innovative technology, and more appealing aesthetics. However, buying the latest model of every device and appliance can get very expensive very quickly, whether buying on cash or credit.

An alternative to outright purchase, which is already a way of life for hundreds of thousands of South Africans, is subscription access. In the same way that one would pay a monthly fee to access Netflix, Spotify or the local gym, consumers pay a monthly subscription fee to access and use a specific item.

This flat rate may include delivery, installation, risk cover, maintenance and the collection of the product should it no longer be needed or when exchanged for the latest model. Most people are already in the cycle of upgrading technology and appliances every few years, but they are most likely left with outdated appliances which they have to either go through the hassle of selling, giving away or which they have to dispose of (in a responsible way).

Subscription access enables consumers to use their hard-earned cash on experiences rather than appliances. Not only will people be relying more on e-commerce in the coming years, they will also be able to access a wider range of products through subscription, owning and owing less, while ultimately having more and enjoying the best brands — affordably and flexibly.

• Hurvitz is Teljoy CEO.