📈 Growing Popularity
Chinese e-commerce platforms Shein and Temu are gaining popularity in Africa, especially South Africa. Smartphones are becoming the main channel for online shopping. DHL's Online Shopper Trends Report 2024 shows increased sales for these platforms. The report, based on interviews with 12,000 participants, highlights global e-commerce trends and consumer preferences in 24 countries, including South Africa, Morocco, and Nigeria.
📊 Market Insights
The DHL report indicates app-based marketplaces are rising globally, with Shein and Temu leading. Shein is popular in the UAE, SA, Morocco, and Brazil, while Temu sees significant traction in the US, SA, and the Netherlands. In Europe, Zalando remains a favorite. The report identifies financial benefits as the top reasons for online shopping: reduced prices (85%), discount codes (77%), and spending rewards (63%).
🛒 Competitive Landscape
Shein and Temu's low-cost offerings have disrupted SA's market. Local retailers complain about losing sales, with some seeing a 30% decline since Temu's January 2024 entry. Temu reports positive reception and significant growth. In June, Temu's app saw over 50M global downloads. Shein, with $22.7B in annual revenue, leads as the largest online-only fashion retailer. March saw 3.2M iOS downloads and 1.7M Android downloads for Shein.
📱 Future Trends
Social commerce is the next big trend in e-commerce. Buying products via social networks like Instagram, WhatsApp, and Facebook is growing. DHL predicts social commerce sales to reach $8.5T by 2030, up from $700B in 2024. Asia leads this trend, with 53% of Chinese and 59% of Thai shoppers using social media for purchases. Smartphones are the preferred device for online shopping, used by 57% of shoppers.
How will local retailers compete with Shein and Temu?
