CEO and successful entrepreneur Jandre de Beer shares the top competitive industries in South Africa at the moment. While this may be insightful to learn, it also means that these industries face tough competition.
Even with a sense of job security and knowing that your business is somewhat of a commodity, high profits and growth come with high risk.
According to De Beer, nine out of 10 of these businesses fail despite their potential.
What are the five most competitive industries in South Africa?
Software development
The app development or software and technology space is the most competitive industry in South Africa, with over 60,000 new competitors entering the market, backed by millions in funding.
Cpluz, a team of creatives in the tech and app development space, revealed the reason behind so many failures. They showed that it had nothing to do with budgeting or lack of resources, but rather “failing to connect with their target audiences”.
Digital marketing
At number two is digital marketing. De Beer says these days, anyone with a social media account believes they can be a ‘good marketer’, but there’s more to it than meets the eye.
He says that while everyone promises to be a ‘marketing expert’, it leaves businesses feeling nervous and anxious, unsure of whom to trust in the industry.
Courier services and logistics
While many people jumped on this business idea during the COVID-19 pandemic, an overly saturated industry has made it quite competitive.
De Beer believes that the only way to come out on top is to slash your prices; lower prices can beat your competitors. However, does that then mean you are undercharging and therefore walking away at a loss?
E-commerce and online retail
Taking the number four spot is E-commerce and online retail, with Takealot comprising more than 30% of the market, Shein and Temu monopolising a combined 30%, and Amazon accounting for 12%. If you are entering this industry, the best way forward is to introduce something unique.
Food delivery
At number five is food delivery. Another industry that experienced a peak during the COVID-19 pandemic.
It is highly competitive, and the profit margins are tiny. Not to mention the risk part of this business. If you receive a negative review, you may be at risk of losing your income.
While South Africans are known for their drive and hunger for side hustles, what sets you apart outside of the industry is great customer service.