Takealot’s media sentiment score is significantly higher than that of most of its competitors, including Chinese competitors Temu and Shein.
E-commerce is fiercely competitive in South Africa, and most of the country’s top retailers invest heavily in their online shopping platforms. The growth of Chinese online giants Temu and Shein in South Africa has also disrupted the local e-commerce market.
Another trend is that online shopping platforms are growing their product offering, which means they are all fishing in each others’ ponds. Checkers Sixty60, for example, significantly increased its product range, including products from Apple, Dyson, Thule, Smeg, Samsung, and Harmon Kardon.
This means it is now competing directly against traditional technology shops like Makro, Takealot, and Incredible Connection. The highly competitive e-commerce and retail market makes marketing and brand awareness crucial for survival. Temu, for example, enjoyed rapid growth in South Africa through its aggressive online marketing campaigns.
It followed the model which fuelled its growth in the United States, where it spent an estimated $3 billion on online marketing in 2023. Research shows that Temu’s aggressive online marketing is working. Following its ubiquitous marketing, millions of consumers now use its app to shop online. Local e-commerce companies have far more conservative marketing strategies, which resulted in them losing market share to their Chinese competitors.
(Source mybroadband.co.za)
Category: Online Collectables