Takealot facing increased competition from international ecommerce companies

krycor

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Depends really.. i'd not say it's competing when those mentioned come with massive delays in shipping with dodge chance it doesnt get delivered or you pay for a lot for it to be securely delivered. So no.. i'd not say its proper competition.

But here's the thing.. if people are willing to take the risk on some items then the items in question are heavily overpriced. In that sense yes.. definite competition(indirect as its usually via their marketplace). Every so often if i want something and can wait, risk cost is < R200 and saving >50%.. i order from China and hope for the best. thats how overpriced SA is on cheap Chinese consumer goods(market place is offering the exact same with a heavy markup).
 

elf_lord_ZC5

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When I can order from Amazon, and get it delivered for half the price ...

Or

I can get the exact item I want, and not have to settle for second or third best choice ...
 

FaSMaN

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It is not clear how local retailers like Takealot, Superbalist, or Loot will respond to this growing threat.

Hmm reducing costs on electronics, cutting down on delivery time, keeping actual products in stock, might be a good place to start?

I mean if you cover all of the above , no one would want to buy from amazon ....
 

krycor

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Btw I am surprised that no chinse org has set up a distribution hub in the economic free zone(i.e. no tax/tariff till it exits into SA) and then distribute from there into AU or South America. Seems like win they should have done already.. Mind ye AliExpress is a market place so unless they set up a regular cargo plane route to regularly drop off goods.. it won't work.

Still I think this is an opportunity not exploited.. just think getting a majority of your small / light items via a local courier..
 

JohnStarr

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All competition is good. Takealot's "discounts" are really something else, and they need more competition to keep their pricing in check.
 

rpm

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Who ever wrote this is on crack, Wish is competition to takalot, wish takes 3 months or more to deliver. Takealot is next day.
Not a fan of crack, but I may be able to explain :)

The argument is that more international shops are signing agreements to get close to local delivery times, which makes them direct competitors to local shops.

Places like Nike are already doing it. They do not build a local distribution network - they do it all from centralized international warehouses.

As cross-border delivery networks improve, local shops will need to find another way to create value to consumers.

Good for consumers, but tough for local stores.
 

elf_lord_ZC5

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who ever wrote this is on crack, Wish is competition to takalot, wish takes 3 months or more to deliver. Takealot is next day.

Seems they are going overboard, growing their own weed, in the flower Garden.
 

noxibox

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It's going to be hard to compete with a giant like Amazon. It's not just about prices, but the breadth of products available. For many products Amazon isn't cheaper once you factor in shipping costs. But they carry a huge number of products that it just wouldn't make sense to stock in a small market.

Under threat? It should be generally perceived as good. In the case you don't want competition then your business mind isn't in the right place.

Competition promotes growth, competition promotes value, and I can go on.
No company wants competition. You're talking about things from a consumer's perspective. From a company perspective you want a monopoly so you can move as much of your customer's money from their bank account to yours.
 

Fulcrum29

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It's even more creepy than that, the headline suggests that it's an Invisible Enemy...

View attachment 1063829

Reading the article it has almost nothing to do with Takealot,
South African online retailers like Takealot are under threat from international competitors like Amazon, Wish, and Shein which are rapidly growing in South Africa.

This is the warning from ecommerce expert and Parcelninja founder, Justin Drennan who was commenting on the local online shopping market.

Instead of establishing a local presence in South Africa, international ecommerce giants are growing their market share through improved cross-border logistics.

though price-consciousness is argued, it has more to with these international competitors having a direct route to the consumer than through a domestic logistical hub.

No local warehousing, only shipping partners. They move volumes, and some with place to stock want in on those volumes.

And again,

It is not clear how local retailers like Takealot, Superbalist, or Loot will respond to this growing threat.

it is not their threat. They need to create value.
 

Fulcrum29

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We did not know much about it until we looked at the app downloads. Then we found out women in the office are big fans. Just like Wish they are huge in South Africa.

Shein is awesome. People who aren't brand concious can get superb value in return.
 
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