Customers Flock To Shein South Africa Pop-Up Store
Chinese-founded online retailer Shein sees strong demand at first pop-up store in South Africa as it faces criticism from authorities
Nearly 100 shoppers waited outside the opening of the first South African pop-up store by online retailer Shein in Johannesburg mall, according to reports, in the latest sign of the Singapore-based company’s worldwide popularity.
Shein has been opening pop-up stores around the world to broaden its popularity, including ones in Liverpool and Seattle in April.
Shoppers in the South Africa store browsed items priced in many cases at under the equivalent of $10 (£8), including clothes and accessories, Reuters reported.
The items were priced so cheaply that one retired pensioner was investigating buying in bulk and reselling, the report said.
Customs controversy
Shein has been criticised in South Africa for allegedly evading customs rules by breaking shipments up into lower-cost parcels.
The company typically sells low-cost items that are shipped around the world directly from manufacturers in China.
South African revenue authorities last month began enforcing a higher import duty of 45 percent plus VAT on all clothing, up from a previous tariff of 20 percent imposed on low-value parcels, in order to prevent companies such as Shein and Temu from undercutting domestic retailers.
Shein denies evading customs rules and says its success is due to its “on-demand business model and flexible supply chain” and that it is investing millions into governance and compliance across its supply chain.
The EU is said to be drawing up plans to impose customs duties on cheap goods from Temu, Shein and AliExpress, according to a Financial Times report last month.
In the US, customs authorities in June announced a crackdown on multiple customs brokers handling billions of dollars in inexpensive online orders from the likes of Shein and Temu, Reuters reported.
Retail competition
More than 1 billion packages, averaging around $50 in value, are projected to arrive in the US this year, fuelled by orders from Chinese online platforms.
While Shein is now based in Singapore, its logistics and manufacturing are largely located in mainland China. Temu is owned by Shanghai-based PDD Holdings.
Shein and Temu have achieved significant consumer recognition in the US, where their success has begun to make a notable impact on domestic retailers including Amazon, whose shares sank over 8 percent percent on Friday after the company reported slower online sales growth.
Amazon’s online store sales rose 5 percent year-on-year in the second quarter to $55.4 billion (£43.3bn), down from 7 percent growth in the previous quarter, the company said.
