Takealot and Checkers beating Shein and Temu in South Africa

Naspers-owned Takealot is the most popular e-commerce player in the South African market, with a market share at least 10% greater than that of the nearest competitor, Checkers Sixty60.

According to data from the Boston Consulting Group (BCG), Naspers-owned Takealot holds a 15% to 20% share of the South African e-commerce market, with its biggest competitor being Checkers with 12% to 15%.

Another grocery retailer, Woolworths, holds the next-highest market share in the space at 8% to 10%, followed by online fashion retailer Superbalist, with a 5% to 6% share of the South African e-commerce market.

The remaining 45% to 55% is held across several online shopping players, including Makro, Bash, Pick n Pay, Amazon, Shein, and Temu.

BCG also breaks down e-commerce market shares into the following product categories:

• Fashion (apparel, shoes, and accessories)
• Electronics, toys, and games
• Groceries and alcohol
• Home and electronics
• Beauty and personal care
• Other (pets, books, etc.)

According to its data, online fashion stores are the most popular in South Africa, holding approximately 35% of the e-commerce market.

Electronics, toys, and games retailers are the next most popular, with an approximate market share of 25%, followed by groceries and alcohol with a 20% share.

The home and electronics category holds roughly 13% of the market, followed by beauty and personal care at 5%.

The “other” category has the lowest e-commerce market share in South Africa at 2%.

Looking at e-commerce in general, the space has grown at an annual rate of more than 30% over the past half-decade.

Moreover, the firm says roughly one in every three South Africans has shopped online in the past 12 months, and this trend is only growing.

“Amidst this challenging retail landscape, e-commerce offers a silver lining,” said BCG.

“The relatively small South African e-commerce industry, which accounts for ~5% to 7% of the retail market, is expected to boom above 20% annual growth rate over the next five years, according to market estimates.”

It added that the Covid-19 pandemic resulted in stricter privacy laws and improved services such as Takealot’s same-day delivery and Checkers Sixty60’s on-demand delivery services for groceries and now general merchandise from Checkers Hyper.

“As the South African market matures, it is expected to follow the consolidation pattern observed in more digitally mature markets globally,” said BCG.

“Such markets often stabilize with two major generalist retailers together dominating about half the market.”

It shared examples of this trend in major markets like China and the US. China’s two dominant e-commerce players are Alibaba Group, which accounts for around 32% of the market, and jd.com, which accounts for approximately 27%.

The US e-commerce space is dominated by Amazon, which holds a 31% market share, and Walmart, which has an approximate 7% market share.

It added that while Takealot and Checkers have gotten a head start, the market has yet to coalesce around dominant online retailers in South Africa.

“The entry of foreign marketplaces — including Shein, Temu, and Amazon — marks a new phase of digital competition in South Africa and potentially across Sub-Saharan Africa,” BCG said.

“These foreign giants have indicated their plans to use South Africa as an entry point for their regional expansion into Sub-Saharan Africa.”

It added that while Shein and Temu offer massive variety, they face the challenges of slower international deliveries and complex customs processes.

“Amazon, however, is building local inventories to enable faster delivery in major metros, setting itself apart operationally from its Chinese counterparts,” it said.