If you can buy a dress for half the price online from a retailer in China, would you buy it rather than support a local business?With Takealot becoming the latest local company to grumble about the unfair advantages Shein and Temu have that make consumers flock to them to spend their income, you have to wonder who will emerge as the winner: the South African consumer or the South African...
However, the nice things made in South Africa will sink their budgets and therefore they turn to Shein and Temu where they get more bang for their buck. The Covid epidemic prepared them well for online shopping and they are experts now. There is no stopping local consumers buying where they can get more for less.Takealot is the latest local company complaining about the unfair advantage Temu and Shein seem to have and wants the playing field in South Africa’s e-commerce sector to be levelled.
“These platforms contribute to a market imbalance by flooding the market with inexpensive imports. This influx is particularly noticeable in the local apparel sector due to Shein and in the wider general merchandise market, affected by both Shein and Temu. These trends pose significant challenges to the development and sustainability of domestic industries.”
Takealot says it has engaged with key stakeholders to underscore the importance of fostering fair competition, enforcing existing regulations on new offshore players that skirt these rules and considering additional measures to address e-commerce challenges comprehensively, ensuring a level playing field for all participants. Globally, regulators in major economies are doing just that.
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