South Africa’s largest e-commerce retailer, Takealot, is intensifying its efforts to penetrate townships and rural areas as it faces stiff competition from global giants like Amazon, Temu, and Shein. In a move to reach underserved markets, Takealot has hired thousands of personal shoppers to assist non-tech-savvy consumers in these regions, ensuring they can access a wide range of products from household goods to electronics and food delivery services.
The competition has escalated with international players entering South Africa’s price-conscious market, increasing the cost of doing business. Takealot CEO Frederik Zietsman acknowledged the significant impact of these global retailers, particularly the Chinese fast-fashion brands and Amazon, which have driven heightened market challenges. Despite this, Takealot remains optimistic about leveraging South Africa’s strategic position and its burgeoning mobile internet user base, smartphone penetration, and innovative payment methods such as Buy Now Pay Later.
Takealot, owned by tech conglomerate Naspers, has been instrumental in driving e-commerce growth in South Africa. However, the current economic environment and increased competition have dampened its growth, with its gross merchandise value growth slowing to 10% for the first half of 2024, down from 15% in the same period the previous year. Additionally, Takealot’s market share has dropped to 20.9% in 2023 from 26.5% a year earlier, according to research by World Wide Worx, Mastercard, Peach Payments, and Ask Afrika.
To counter these challenges, Takealot is focusing on expanding its presence in underserved areas, where personal shoppers play a crucial role in facilitating seamless access to e-commerce services. These strategic efforts aim to position Takealot as a key player in South Africa’s competitive retail landscape.
