South Africa’s largest online shopping platform, Takealot, has brought on board thousands of personal shoppers to expand its reach into townships and rural regions, aiming to stay competitive against growing threats from international competitors.
Threat from international competitors
Companies are drawn to South Africa’s e-commerce market because of its growth potential and strategic location. Notable international brands like the Chinese fast-fashion retailers Temu and Shein have entered this price-sensitive market. Additionally, Amazon, the major US retailer, has joined the South African market.
A weak economic environment and competition from global entrants have curbed Takealot’s growth.
What are South Africans buying online?
The variety of products that people can purchase online is continuously growing.
Among South African consumers the two most popular categories for online purchases are clothing (54%) and shoes (40%), according to the latest statistics by Statista, released in October 2024. The data is based on feedback from over 2 000 respondents in the age group 18 to 64.
Other popular categories are food and beverages (excluding restaurants), cosmetics, and health products.
How is Takealot planning on infiltrating rural areas?
To attract more customers in South Africa’s townships and rural regions, Takealot is hiring personal shoppers to assist mainly non-tech-savvy consumers with their shopping needs. Frederik Zietsman, Takealot Group CEO, said that they have identified these areas as places where e-commerce has had difficulty gaining popularity. Markedly, most online spending comes from urban areas.
So far, Takealot has brought on around 2 500 personal shoppers as part of this initiative. The company’s goal is to reach 5 000 by 2028, according to Zietsman.
Thus far, this initiative has shown positive outcomes.
Newest warehouse in KZN
Takealot opened its third distribution centre in KwaZulu-Natal last month, aiming to offer faster deliveries in the country’s second most populated region. Although the company has been operating in KwaZulu-Natal for over a decade it has been fulfilling orders through its other warehouses.
The warehouse is located in Durban and spans 43 000 square metres. Markedly, the facility is equipped to ship up to 45 000 units per day.
‘The city’s infrastructure connects regional markets to global supply chains, and its strategic location offers unmatched access to key transport routes. The new distribution centre enables Takealot to leverage on these logistical advantages,’ said Zietsman.
Takealot’s two other distribution centres are located in Cape Town and Johannesburg.
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