Shein and Temu have exploited loopholes to undercut local e-commerce companies unfairly, Takealot said.
fashion and general merchandise online retailers Shein and Temu have taken advantage of loopholes to undercut South African e-commerce companies unfairly, Naspers -owned Takealot Group said on Monday.for the year ended 31 March 2024, Takealot accused Shein and Temu – and others like them – of threatening South Africa’s “reindustrialisation and localisation efforts”.
Takealot accused the companies of “exploiting outdated regulations and loopholes by using shipping methods that allow them to offer products at exceptionally low prices while avoiding duties, taxes and other government fees imposed on conventional retailers”. “In addition, without reform, potential new international investment could be deterred by the risk of an unstable and unbalanced market. Importantly, beyond the regulatory environment, these businesses selling into our country do not invest in physical infrastructure locally, nor do they employ locally – a net loss to South Africa.
The move was an attempt to “level the playing field” for local retailers following criticism that Shein and Temu were “abusing” tax loopholes to gain an unfair advantage in the local market by allegedly breaking up large shipments into “small packages”.
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