Stanislav Kogiku/SOPA Images/LightRocket via Getty Images
- Takealot says it has not teamed up with Shein, although some of the Chinese retailer’s products can be found on its platform Takealot.com.
- It said one or two marketplace sellers were selling Shein products they have imported themselves.
- Takealot said its position on wanting fair competition among online retailers remains unchanged.
- For more financial news, go to the News24 Business front page.
In case local consumers are wondering, SA’s largest online retailer, Takealot, has not teamed up with rival Chinese platform Shein.
However, they could be forgiven for thinking given that the fast-fashion giant’s products can be found on its Takealot.com platform, with a search from News24 finding eight matches for Shein products, ranging from overcoats to blouses, pants and skirts.
A screengrab of Takealot.com’s results for the search “Shein”. (Takealot.com/Supplied)
Supplied
This is despite Takealot acknowledging that its Superbalist business has been hit hard by Shein’s private label offerings, while it and other SA retailers and unions have raised concerns over possible abuse of SA’s regulatory framework by companies. This follows concerns that players such as Shein and Temu are taking advantage of small parcel rules, which didn’t attract the same taxes faced by established retail players.
READ | Despite a bit of a battering from Shein, Takealot is confident about its next growth phase
Takealot told News24 in a written response that it has not “done any direct partnerships with Shein” and there are one or two marketplace sellers who have been “reselling a very small amount of products they have imported themselves”.
Sellers are allowed to sell any products as long as they are legal. We don’t intervene unless it’s an exceptional case.
It said that its stance around international ecommerce platforms remained unchanged.
“We want fair competition, which sees both local and international ecommerce players being treated equally, especially in relation to VAT and customs.”
Market challenges
Shein is not the only Chinese retailer making serious inroads in SA.
In February this year, News24 reported how Temu’s strong growth in SA since its launch in January was a big concern to both local retailers and union representatives.
At the centre of their concerns was that Temu would be even more successful than Chinese online giant Shein in allegedly exploiting import tax loopholes to undercut South African companies. This poses a risk of permanent harm to the fashion retail sector, they said at the time.
READ | ‘Out Shein Shein’: Entry of Chinese player Temu sparks deep concern for SA retailers
In April, Takealot CEO Frederik Zietsman told News24 that regulatory concerns about Temu and Shein had to be addressed with urgency by the state and that Takealot had been partnering with governmental and nongovernmental bodies to ensure that the message is clearly communicated.
“Because it’s not just a risk to the fiscus and revenue leakage, but it is a very real and present threat to our ambitions to industrialise South Africa and to drive local manufacturing and import substitution,” he said at the time.
The government has since clamped down on rules that have previously allowed Chinese retailers like Shein and Temu to bring goods into the country at a lower cost than rivals. From 1 July, parcels Chinese retailers brought in of below R500 would be taxed at the same rate that local clothing retailers paid, namely 45% plus VAT.
Takealot is part of the Naspers group, which also owns Media24.
