Chinese-linked ecommerce platforms like Shein and Temu have found favour among South African consumers. Marketing Research Foundation’s marketing survey group has found that Shein holds a 35% market share in the country’s women’s clothing sector. At the same time, Temu is the most downloaded retail app among South African smartphone users.
The arrival of these platforms has put tremendous pressure on local sellers to remain competitive, particularly during super-discount periods like Black Friday.
With Amazon also establishing its footprint in South Africa this year, South African retailers know they are fighting to stay relevant in an increasingly crowded space populated by big players able to offer competitive pricing driven by economies of scale and direct shipping.
However, according to Bob Group Head of Marketplace, Craig Lubbe, South African retailers have the advantage of understanding the local market better than any new entrants.
‘Their specific product niche is also a potential advantage when competing with other major platforms.’
In the head-to-head analysis, South African ecommerce businesses can offer faster and more efficient delivery services than Shein, where international shipping times can take weeks.
Local retailers also appreciate that South Africans value individual-focused customer service, given their thorough understanding of the market.
‘Personalised, responsive customer support is a powerful differentiator. Retailers can use direct channels like WhatsApp or online customer chats to provide excellent service,’ Lubbe said.
‘South African businesses can also offer flexible returns and warranties, whereas buyers are often concerned about returning items to international sellers. Offering easy return options can reassure local customers.’
The ecommerce giants have an edge because they are well-resourced and equipped with powerful digital tools and infrastructure to satisfy millions of orders.
Conversely, small and mid-sized retailers on Black Friday may struggle to predict demand accurately and retain the right stock. For this reason, Lubbe suggested sellers diversify their offering to limit stock shortages across their assortment. He added that tracking current and previous years’ sales data can help forecast high-demand items.
Capacity planning should be done well before an event like Black Friday. There are also platforms available that are well prepared for use at scale to minimise the risk of downtime.
Lubbe encourages merchants to use services that offer fair pricing for various delivery options and an efficient order-management flow when fulfilling orders. ‘The key is to sign up well before Black Friday to test such delivery platforms.’
BOB GROUP
https://www.bob.co.za/
