Internet Consumer Analysis: Basics 2003

There are five major aspects affecting consumers, which contribute to the success of eCommerce in Zimbabwe – namely Disposable Income, Literacy, Migration, Economic Instability and Technological Changes.

6.1 Disposable Income
Most people spend their disposable income on commodities than unique experiences. Others have their disposable income locked up in liability promoting expenditures. This poses a challenge to eCommerce players to create more disposable income, and eventually employment, through their inventions.

6.2 Literacy
The 35year and above age demographic group is the most Information and Communications Technologies illiterate; yet the bread winning group. This poses a huge challenge to eCommerce players in educating these income holders.
There is however hope in the younger generation, as they are the most literate and also increasingly attaining employment.

6.3 Migration
People are migrating to other nations with better living conditions. Our nation is losing an estimate of Z$20 billion each month, because of citizens’ migration (±20000 people paying ±$1m on airfare). This shows that money is available, but there have not been any innovative eCommerce players to influence other sector to attract these consumers or investors.
On the other hand, this migration is a positive because we now have a world wide Zimbabwean consumer and investor market – a chance for eCommerce to thrive.

6.4 Economic Instability
The current conditions have left consumer in a panic and impulsive buying of commodities. This has been caused by the runaway inflation rates, and most recently, shortages of commodities, even cash. This is however a very big positive to eCommerce, because it promotes a notes (cash) free society. Other positives are the unpredictable ‘stay – aways’, which hit places like the stock exchange, who will be registering a minimal loss of Z$250 million a week.
6.5 Technological Changes
Information and Communications Technologies have dramatically changed, even in Zimbabwe. We apparently have at least 80% eCommerce enabled Information and Communications Technologies. consider the following facts and figures.
- The new Sony PlayStation II is Internet and DVD enabled. This means families can communicate via their television sets.
- Mobile phones are Internet and Wireless Application Technology enabled. This means that they can be used to tap into any computer system using a protocol called WAP.
- It is cheaper to buy a computer than a TV and/or VCR. A DVD enabled Computer costs approximately Z$3.5m, which can play videos, music, and connect to the Internet.