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SA e-commerce: Local retailers vs Amazon, Shein, and Temu
- Local e-commerce has been growing at a roughly 30% rate over the past five years, with top players taking around half of the market. It currently still only makes up 5% to 7% of the social retail market and is predicted to have slower growth, around 20%, for the next three to five years.
- The main players are competing in a fairly immature market, making it difficult for global players to truly dominate, but Amazon, Shein, and Temu are giving stiff competition. Local players like Takealot and Checkers Sixty60 are keeping up with same-day and innovative services.
- While the local market has unique challenges like rural or township delivery, Amazon is working to partner with local players to overcome some of these challenges and local players need to focus on differentiating themselves from global players.
- Local players have succeeded in beating Amazon in the Netherlands and Brazil with their approach. However, players need to pick up their pace and think about differentiation to win over customers and provide a local touch. The consumers will probably benefit from having more global and local players in the market.
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