Potential market! Shein shopping app ranks first in downloads, and Amazon is also making plans

Shein has now become the most downloaded shopping app on the Google Play store in South Africa, and its arrival has caused a sensation in the country.

It is reported that shein was launched in South Africa during the Covid-19 pandemic and quickly gained a foothold here through word of mouth among users and preferential discounts offered to new users.

A user in Johannesburg said that she now buys all her clothes online, and so do her friends. Shein is a platform and brand that she buys from repeatedly because of its competitive prices, trendy styles and fast delivery service.

South Africa has a rapidly growing population, a growing middle class, and an internet penetration rate of 72.3%. Compared with most other countries in Africa, more people in South Africa live in concentrated urban areas. However, the country has few formal retailers and the development of e-commerce is also backward. Here, e-commerce only accounts for about 4% of the retail industry, which shows the huge potential of this market.

In fact, it is not only Shein that has seen the potential of South Africa, but also Walmart and Amazon.

More than a decade ago, Walmart spent a huge amount of money to acquire the local retail group Massmart, trying to win the hearts of South African consumers in a traditional way, but it has not achieved the expected goal so far; Amazon has been providing network services to this country with a population of about 60 million since 2004, and some time ago there was news that Amazon was about to launch a site in South Africa.

Anthony Thunström, CEO of local retailer Foschini Group, said the arrival of Amazon and shein has led to a rapid growth in online shopping in South Africa, where the adoption of digital shopping and online shopping has been slow, so he sees the competition as good.

Alec Abraham, an analyst at Sasfin Securities in Johannesburg, believes that Africa already has the ability to leapfrog in technology, which can be seen in online banking and mobile payments, as well as shopping using apps.

Abraham also believes that although South Africa's economy is still facing difficulties, the fact that large companies have entered this market one after another shows that it has huge potential. He also believes that the future "battle of kings" will be between shein and Amazon.

However, as global retailers enter South Africa in large numbers, local retailers are also concerned about whether everyone can operate on a fair environment.

Pieter Erasmus, CEO of Pepkor , Africa's largest clothing retailer , said they don't mind competition as long as they follow the rules.

In response, a spokesperson for shein said that shein abides by all local laws and regulations and is willing to engage and cooperate with the South African government.

SHEIN

Amazon

Potential Market