A keyboard and a shopping cart are seen in front of a displayed Shein logo in this illustration. REUTERS/Dado Ruvic/Illustration
Johannesburg: Shein is the most downloaded shopping app on South Africa’s Google Play store. And it isn’t 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 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.
Taahira Khumalo, a 24-year-old receptionist in Johannesburg, said 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.
“Shein offers really good discounts and I don’t wait long for my parcels to arrive,” she said. “Since the pandemic, technology has improved and now I really don’t need to leave the comfort of my home to shop.”
Shein, founded in China, is gaining a foothold in a nascent eCommerce market in the most industrialised country in Africa and is squaring up to US giants Walmart Inc and Amazon.com Inc, who want to do the same.
Walmart has tried to win local hearts the traditional way, buying into domestic retail group Massmart Holdings Ltd 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.
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 – and South Africa is the most obvious place to start.
“Amazon and Shein are going to accelerate online shopping in South Africa beyond recognition,” said Anthony Thunström, chief executive officer of The Foschini Group Ltd, a local retailer that owns Jet, a discount clothing chain.
“South Africa has been very slow adopting digital or online shopping, so I think the competition’s good.”
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.
eCommerce makes up about 4% of retail in the country meaning there are potential riches to be won.
Early mover advantage hasn’t 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.
Instead, in the last three years, it has focused on building its South African online sales and sent Sylvester John, one of its eCommerce experts, to Johannesburg with the goal to make Massmart South Africa’s top general merchandise website with same-day fulfilment. — Bloomberg
