Takealot Group boosts investment in its online fashion retailer, to modify its business model amid rising competition from Chinese multinational e-tailers
Superbalist has been forced to increase its Google online advertising by 200% since the arrival of Temu and Shein in SA..com has taken a huge knock in performance over the years, with the retailer posting 7% gross merchant value growth in its annual financial results released last month.
“Superbalist has seen a difficult year over the last financial year, to be honest. It was at the height of the storm when Shein came into the country. And, as with any other clothing retailer, that is going to be a battle. We've introduced some initiatives and interventions that we believe are required. Any business needs to redesign and re-evolve itself when there are realities around it that require change.
According to Zietsman, despite the fashion apparel e-tailer being the worst performer in the Takealot Group stable, the company has no plans to sell off the business, as there is still a lot of growth potential. Temu, which made its local debut in January, has over 350 million app users across the globe, and was the most downloaded app in the first quarter of 2024. In March alone, the app was downloaded over 41 million times globally, making it more popular than Amazon’s marketplace app, according to research firm Statista.
The online retail giant further stated that regulatory gaps and outdated regulations in SA’s e-commerce sector created an enabling environment for the exploitation of tax loopholes by these global e-commerce players.
Superbalist.Com Temu Shein Wish Made-In-China Sunsky Frederik Zietsman Takealot.Com Mr D Online Fashion Retailer E-Commerce
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