South African Clothing Retailers Losing Lustre in Face of Shein Juggernaut

analysis

The China-based ultra low-cost fast fashion retailer might have a growing market in South Africa, but it's putting the squeeze on local retailers.

The fashion industry is the world's second-biggest polluter and fast fashion is at the very heart of the problem, with ultra-low-cost, cross-border retailers accused of human rights violations, environmental degradation, social problems and waste, because returned products are not recycled or resold - they're destroyed.

These international e-commerce giants are also starting to eat South African clothing retailers' lunch, even if they won't admit it publicly.

Last week, Takealot's Superbalist announced it had commenced a Section 189 process, to restructure its business. Days earlier, Takealot - clearly twitchy about global behemoth Amazon's pending arrival - announced it was trialling an on-demand service, which offers customers in Durbanville, Parow and surrounds in northern Cape Town a selection of about 500 products, which will be delivered within the hour.

The Naspers-owned Takealot Group - comprising Takealot.com, Mr D and Superbalist, is under pressure. Not only is it yet to post a profit since its launch in 2011, but on 27 June this year, the group reported a $22-million (then R407-million) loss - more than three times higher than the previous year.

'Deliberate' restructuring

Superbalist, meanwhile, denies that its retrenchment process has anything to do with a loss of market...

AllAfrica publishes around 400 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.