One in three South Africans have used Chinese online retailer Temu’s platform, 40% of whom have become active users, according to a survey published on Thursday.
The survey, conducted by News24 with Temu’s support, asked 1,700 consumers questions about “Temu’s growing popularity, the savings it provides, and its role in improving access to affordable, high-quality products”.
Temu, the international online marketplace of China’s Pinduoduo, launched in SA a year ago. The subsequent upheaval for local retailers saw them successfully lobby for strict laws on the company and fellow Chinese firm Shein.
Temu said it had “cemented itself as a smart choice for shoppers”. Among its users, 81% recognise the platform for its affordability, while 46% estimate they save more than half of their shopping budget when using Temu.
A big part of the Chinese company’s success is due to low prices and cheap goods.
Price remains the deciding factor when making purchases for 65% of SA respondents. Nearly 81% believe that “a factory-direct model, like Temu’s, provides access to high-quality products at significantly lower prices”.
“We are incredibly grateful for the trust and support from our consumers in SA, a vibrant and dynamic market,” said a Temu spokesperson.
When asked by Business Day, Temu would not disclose the value of transactions on its platform in SA or the number of users in the country, saying only it had quickly gained popularity among consumers.
As more local retailers establish an online presence and global players enter the market, competition is intensifying.
To level the playing field with local retailers, SA authorities recently added a 45% duty plus VAT to small batches of retail goods imported from China. That has substantially raised the costs for certain items bought via Shein and Temu. However, competition remains fierce.
Amazon officially opened its SA unit in May, marking a pivotal moment for the country’s e-commerce sector and launching an onslaught against major retailers in the R1.3-trillion market.
While much of the attention about Amazon in SA has focused on its competition with Takealot, SA’s largest online retailer, Shein and Temu have already secured their place in the market.
Bullish
Temu remains bullish about its local business though, saying online shopping continues to grow across SA — 64% of respondents to its survey indicated they shop online more frequently than a year ago. The main driver of the growth was convenience (72% of respondents), being able to compare prices (56%), flexible shopping hours (53%), and access to a wider range of products (51%).
To capture a share of the 11.7-million e-commerce users expected to transact in 2025, SA’s online retailers must continually innovate and introduce new products to stay ahead of evolving consumer demands, said Elzaan Erasmus, division manager at online daily deals site OneDayOnly.co.za.
“Products must be designed to make their [consumers’] lives easier by saving them time and solving everyday problems,” she said. “The future of e-commerce lies in the ability to predict consumer preferences before they become trends, delivering products that not only meet needs but exceed expectations.”
As inflation eases and interest rates fall, “consumers are shifting from cautious to intentional spending, with many now willing to invest in tech innovations that simplify their lives. Whether it’s robotic vacuum cleaners or health-monitoring wearables, technology is becoming an essential part of daily life,” Erasmus added.
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