Chinese multinational e-commerce platforms Shein and Temu are seeing escalating sales in Africa, as smartphones increasingly become a preferred channel for online shopping in the region.
This is one of the preliminary findings of logistics company DHL’s Online Shopper Trends Report 2024, which provides online shopping trends based on interviews with 12 000 participants across the globe.
The report provides insights into the international e-commerce industry and online shopping consumer preferences across 24 countries, including SA, Morocco and Nigeria.
DHL’s e-commerce unit commissioned the study to understand consumers' online shopping habits across the globe.
This year, DHL created a series of chapters starting with the trends shaping the e-commerce landscape. The full report is set to be published in the coming months.
According to the study, the global phenomenon of app-based marketplaces has witnessed a remarkable surge in popularity, with Shein and Temu leading the way.
Shein is immensely popular with shoppers in the UAE, SA, Morocco and Brazil, while Temu has gained significant traction among shoppers in the US, SA and the Netherlands, it says.
However, in Europe, German online retailer Zalando remains the preferred online shopping destination.
The three most important benefits for online shoppers across the globe are financial-related – with most respondents opting for reduced prices (85%), followed by discount codes (77%) and spending rewards (63%), it finds.
“Today's online shoppers are highly-conscious of costs, particularly when seeking affordable, flexible and convenient delivery options. These platforms share the everyday appeal of offering online shoppers an enormous range of affordable products, seamlessly integrated into user-friendly mobile apps,” says the report.
While SA is Temu’s only operating market in Africa, Shein caters to shoppers in Algeria, Morocco, the Democratic Republic of Congo and Mali, among others.
The low-cost e-commerce apps have taken SA by storm, aiming to saturate the market with products that are on offer for a fraction of the price on competitors’ sites.
ITWeb previously reported on the frustration felt by local clothing retailers, which accused global online sites of offering unreasonably cheap prices, with some saying their sales have declined by almost 30% from the beginning of the year, when Temu made its debut in SA.
Temu previously told ITWeb it has received a positive reception from South African shoppers, with its local business growing significantly since inception in January 2024.
In June alone, the app was downloaded over 50 million times globally.
According to research firm Statista, Shein is the largest online-only fashion retailer globally, with anestimated annual revenue of $22.7 billion.
In March, the fashion app registered roughly 3.2 million downloads from iPhones and iPads, while Android devices accounted for about 1.7 million downloads.
The DHL report further reveals that social commerce is becoming the next big thing in e-commerce.
It allows users to buy products directly via social networks, like Instagram, WhatsApp and Facebook. Sales through social media platforms are expected to reach $8.5 trillion by 2030, compared to an estimated $700 billion in 2024, according to DHL.
“This would represent an approximately 12-fold increase within a span of six years. Asia is at the forefront of this trend, with China seeing 53% and Thailand seeing 59% of shoppers purchasing via social media.
“With this also comes a shift in preferred devices for buying online. Most online shoppers prefer to browse and purchase products with their smartphones − 57% use their smartphone as the dominant shop window and purchasing device.”
In terms of the frustrations presented by online shopping, the report notes high delivery costs are a significant barrier, with 41% of shoppers abandoning their purchases due to expensive delivery fees.
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