South Africa’s Going clearance marketplace has made its first acquisition, fashion eCommerce site Diligo in undisclosed amount in a move to consolidate its market position. The firm is set to make more acquisitions next year said Paul Greenberg, its Chairman.
This move will work pretty well as it has been recorded that more south Africans are shopping online; making the percentage grow from 44 percent in 2009 to 58 percent.
“We saw the same thing in Australia and the United Kingdom three years ago, where there was a proliferation of e-commerce spending big money building loyal customer following, but as private equity funds dried up the lack of profitability caused a speedy market consolidation. The smaller players struggled to find momentum and either closed down or sold out to the bigger ones,” said Greenberg.
He said that his various acquisitions are as much about the talent as they are for the companies’ infrastructure and customer bases.
“I think there is a shortage of talent in this space and these guys are showing they are very nimble and have some great knowledge with them. We are still using some of the pearls of wisdom that were brought in from the acquisitions we made years ago,” said the chairman.
The purchase comes at a time when Going is strategically focusing on growing a customer base that is now demanding wholesale opportunities.
“There is a convergence of B2B and B2C when it comes to sales and we are looking at more acquisitions to bolster our customer bases,” says Going Managing Director, Neville Bear.
Going.co.za, launched in July of 2013, achieved exceptional growth in the first few months of trading and this strategic move follows a growing demand from customers seeking bargains in the form of excess stock, returned inventory, aged ranges and liquidation stock.
Diligo, founded in 2010 by Lauren Graham and Kimberley Wood, will now operate under the Going name where users will have access to lifestyle products at up to 70% off current retail prices.
Lauren Graham said: “it’s an exciting time in the e-commerce space and after working with the Going team, I’m confident our customers are in good hands. I have no doubt Going will continue to offer users exceptional deals, in multiple categories, and continue to provide great service and delivery with their extensive logistics and sourcing experience.’’
