South African e-commerce leader Takealot is revamping its strategy to counter the rising tide of foreign online retailers like Shein and Temu. These aggressive players have been rapidly capturing market share, particularly in the clothing sector, with some accusing them of exploiting loopholes in import tax regulations.
Takealots fashion arm, Superbalist, has been hit particularly hard. The company is planning to limit its own-brand offerings and prioritise attracting established international brands, like its current partnership with H M. This shift reflects Superbalists need to differentiate itself in a market increasingly saturated with low-cost options.
Superbalist has seen a difficult year, Takealot Group CEO Frederik Zietsman told the Sunday Times . We need to reposition [Superbalists] offering and think about some value-add we can bring in.
The Takalot Group - comprising the flagship online store Takealot.com, food delivery platform Mr D, and fashion arm Superbalist - reporting a trading loss of ZAR 252 M (USD 14 M), which Zietsman attributed to Superbalist.
Takealot has long advocated for a more balanced e-commerce playing field in South Africa. The company argues that past loopholes in import tax regulations gave foreign retailers an unfair advantage . These loopholes allowed them to import smaller packages at lower duty rates.
