{"id":52849,"date":"2023-08-19T10:45:49","date_gmt":"2023-08-19T10:45:49","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/shein-is-growing-in-sa-and-it-isnt-even-trying-that-hard"},"modified":"2023-08-19T12:14:13","modified_gmt":"2023-08-19T12:14:13","slug":"shein-is-growing-in-sa-and-it-isnt-even-trying-that-hard","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/shein-is-growing-in-sa-and-it-isnt-even-trying-that-hard","title":{"rendered":"Shein is growing in SA. And it isn\u2019t even trying that hard"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>Shein is the most downloaded shopping app on South Africa\u2019s Google Play store. And it isn\u2019t even trying that hard.<\/p>\n

The Singapore-based fast-fashion brand launched in the country at the foot of the continent during the Covid-19 pandemic and is expanding via word-of-mouth and by offering first-time buyer discounts. It has already caused such a stir that local retailers are spooked and regulators are investigating if it has exploited import tax loopholes when sending parcels to shoppers.<\/p>\n

Taahira Khumalo, a 24 year-old receptionist in Johannesburg, says she now buys all her clothes online and Shein is a brand she keeps on returning to, lured by its competitive prices, on-trend fashion and speed of delivery.<\/p>\n

\u201cShein offers really good discounts and I don\u2019t wait long for my parcels to arrive,\u201d she said. \u201cSince the pandemic, technology has improved and now I really don\u2019t need to leave the comfort of my home to shop.\u201d<\/p>\n

Shein, founded in China, is gaining a foothold in a nascent e-commerce market in SA and is squaring up to US giants Walmart and Amazon.com, who want to do the same.<\/p>\n

Walmart has tried to win local hearts the traditional way, buying into domestic retail group Massmart more than a decade ago in an expensive move that so far has failed to live up to expectations. Amazon, which has been providing web services in the country of about 60 million people since 2004, is expected to launch its e-commerce delivery business in South Africa in coming months.<\/p>\n

With rapidly growing populations but little formal retail and even less internet shopping, many retailers know they will eventually have to figure out how to make Africa work for them \u2014 and South Africa is the most obvious place to start.<\/p>\n

\u201cAmazon and Shein are going to accelerate online shopping in South Africa beyond recognition,\u201d said Anthony Thunstro\u0308m, chief executive officer of The Foschini Group, a local retailer that owns Jet, a discount clothing chain. \u201cSouth Africa has been very slow adopting digital or online shopping, so I think the competition\u2019s good.\u201d<\/p>\n

South Africa has a growing middle class, nearly three quarters of the country has Internet access and more people live in concentrated urban areas than in most other nations in the region. E-commerce makes up about 4% of retail in the country meaning there are potential riches to be won.<\/p>\n

Early mover advantage hasn\u2019t really helped Walmart though. When the US retailer first bought into Massmart, which sells clothes, fridges and washing machines alongside tinned foods, it had ambitions to expand with stores across Africa. But subpar infrastructure and difficulties finding good real estate has dimmed that dream.<\/p>\n

Instead, in the last three years, it has focused on building its South African online sales and sent Sylvester John, one of its e-commerce experts, to Johannesburg with the goal to make Massmart South Africa\u2019s top general merchandise website with same-day fulfillment. Massmart is already revamping its websites and the re-designs are focused on ensuring they\u2019re formatted for mobile devices first, instead of desktop. That\u2019s because of the strong preference of South African consumers to browse and shop online on their mobile devices, according to John.<\/p>\n

Last year the value of goods sold online by Massmart rose more than 90% to R2.3 billion, helping justify Walmart\u2019s decision to buy out the unit in preparation to go head-to-head with arch rival Amazon. Though it has yet to set a firm date for its retail launch in the country, Amazon has been advertising for local recruits in recent months. The Seattle-based company won permission in June to continue building a local headquarters near Cape Town after a halt due to a dispute with an indigenous group over the land\u2019s traditional use.<\/p>\n

Global retailers\u2019 inroads into South Africa come even as the country\u2019s antitrust regulator examines how e-commerce prices are formulated and as the country battles with erratic electricity supply which is severely hampering economic growth.<\/p>\n

\u201cAfrica has shown its ability to leapfrog when it comes to technology \u2014 we\u2019ve seen this in online banking and mobile money and I think we are seeing it in purchases made with apps,\u201d said Alec Abraham, an analyst at Sasfin Securities in Johannesburg. \u201cWhile the South African economy is currently floundering, getting big players like this putting a foot in the door demonstrates the potential that sits within this market.\u201d<\/p>\n

Local retailers are already trying to get ahead of the latest global scramble for South Africa, expanding both what they offer online and how quickly they can deliver orders. Thunstro\u0308m\u2019s TFG recently launched its fashion and lifestyle shopping platform, Bash, in just nine months.<\/p>\n

\u201cWe realized that the future battle was going to be against the Sheins and Amazons of the world,\u201d he said. \u201cNormally this takes two years, but we knew we had to push to do it quicker than that and do it well.\u201d<\/p>\n

There are some growing concerns, however, about whether all retailers will operate on a level playing field. South Africa\u2019s local industry association as well as the textile union have already complained to the government that they suspect Shein is possibly exploiting customs tax loopholes.<\/p>\n

\u201cWe don\u2019t mind competition as long as it\u2019s by the rules,\u201d said Pieter Erasmus, CEO of Pepkor, Africa\u2019s largest clothing retailer.<\/p>\n

Shein complies with all local laws and regulations and remains open to engage and cooperate with the South African government, a spokesperson said, adding that the retailer finds the local market interesting.<\/p>\n

Paying far more than expected for her Shein order to pass through South African customs was Agnes Rammutla\u2019s recent experience. The 25-year-old dentist has been buying from Shein for about a year. There was no glitch with her other six orders, but this time local authorities made her stump up more in custom duties before releasing the parcel.<\/p>\n

\u201cLike me, all my friends buy online, but I guess there can be a risk,\u201d Rammutla said.<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. Shein is the most downloaded shopping app on South Africa\u2019s Google Play store. And it isn\u2019t even trying that hard. The Singapore-based fast-fashion brand launched in the country at the foot of the continent during the Covid-19 pandemic and is expanding via word-of-mouth and by offering first-time buyer discounts. It has already […]<\/p>\n","protected":false},"author":84,"featured_media":52848,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[274,315,2842,6093,275],"class_list":["post-52849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-south-africa","tag-online","tag-shein","tag-south-africa-2"],"yoast_head":"\nShein is growing in SA. 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