Tag Archives: Temu

Shein and Temu outpace global retail giants in South Africa’s fashion market

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China-founded e-commerce retailers Shein and Temu have captured a combined 3.6% share of South Africa’s retail, clothing, textile, footwear and leather (CTFL) market, accounting for 7.3 billion rand ($405 million) in sales in 2024, a report showed on Tuesday.
Shein entered the market in 2020, followed by Temu in 2024. Both have disrupted the local retail landscape through aggressive pricing, strategic marketing, and using tax loopholes that initially gave them a competitive edge over local retailers.
Their appeal to price-sensitive consumers has impacted local retailers, who urged regulators last year to close the tax loophole, which eventually ended last year.
The Localisation Support Fund (LSF) report found that domestic retailers’ market share of CTFL declined from 75.3% in 2011 to 74% in 2024. Meanwhile, international brick-and-mortar brands like H&M (HMb.ST), opens new tab, Zara (ITX.MC), opens new tab, and Cotton On hold a combined 3.4% share.
Shein and Temu now command a combined 3.6% share of the CTFL market, and 37.1% of South Africa’s e-commerce CTFL market, with Shein alone accounting for 28% of online ladies’ CTFL sales.
“Those (international)retailers have acquired this market share over a period of 13 years, and Shein and Temu have managed to match and surpass this in just a five-year period,” said Sean Mercer, principal consultant at consulting firm BMA.
($1 = 18.0270 rand)

Author Credits:- Siyanda Mthethwa
Reuters

EU says Temu in breach of rules to prevent sale of illegal products

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The European Commission on Monday said Chinese online marketplace Temu was breaking EU rules by not doing enough to prevent the sale of illegal products through its platform.
The EU’s findings could ultimately lead to a fine of up to 6% of Temu’s annual global turnover, the Commission said.
“Evidence showed that there is a high risk for consumers in the EU to encounter illegal products on the platform,” it said in a statement about Temu.
“Specifically, the analysis of a mystery shopping exercise found that consumers shopping on Temu are very likely to find non-compliant products among the offer, such as baby toys and small electronics.”
The Commission said Temu’s risk assessment was inadequate as it was based on general industry information, not on the specifics of its platform.
It said that if the Commission’s preliminary findings were ultimately confirmed, Temu would be found in breach of the Digital Services Act.
“Such a decision could entail fines of up to 6% of the total worldwide annual turnover of the provider and order the provider to take measures to address the breach,” it said.
Temu can respond to the EU’s findings in the coming weeks, an EU spokesperson said, without giving an exact deadline.
A Temu spokesperson said the company would continue to “cooperate fully” with the Commission.
The findings relate only to one aspect of a broader ongoing EU investigation into Temu, the Commission said.
Temu is also suspected of breaching EU rules relating to the use of addictive design features, the transparency of its recommendation systems and its access to data for researchers.

News Credits- Reuters

DHL Group and Temu sign Memorandum of understanding to support local businesses

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DHL Group, the world’s leading logistics company, has signed a Memorandum of Understanding (MoU) with the e-commerce marketplace Temu to deepen their cooperation and to further expand their successful partnership.

The agreement aims to enhance collaboration to better support local small and medium-sized enterprises (SMEs) in established markets as well as in growth markets, such as Eastern Europe and the Middle East.

Both parties are committed to fostering compliant trade and sustainable practices.

DHL Group will support Temu through its logistics expertise, including multimodal transportation solutions, to provide more efficient and sustainable supply chain services. With its dense network and global presence, DHL Group is the ideal partner to support Temu’s growth in both established and new markets.

“Through our various DHL divisions, we are already providing a wide range of logistics services and solutions, including air freight and last-mile delivery. We are excited to elevate our partnership with Temu to the next level. By combining our logistics capabilities with Temu’s innovative platform, we can create more efficient, compliant and convenient solutions that benefit both consumers and local businesses in the markets we serve,” states Katja Busch, CCO and head of DHL customer solutions & innovation.

As part of the Memorandum of Understanding, DHL Group will utilise its logistics expertise to support Temu’s operations in Europe, including its local-to-local model, which enables local merchandise partners to sell on its platform and supports local fulfillment.

Temu expects up to 80% of its total sales in Europe to come from this local-to-local model. Additionally, the e-commerce platform will enable European-based sellers to reach global markets in the future. This allows, in particular, SMEs to scale and expand their businesses. DHL will also assist Temu in growing its presence in e-commerce markets, including the Europe, Middle East, and Africa (EMEA) regions.

“This letter of intent marks a significant step in our partnership with DHL Group. Its extensive network and logistics capabilities will help support our mission to increase consumer access to affordable products and help increase growth opportunities for sellers,” states Qin Sun, co-founder of Temu.

News Credits- CAPE Business News