Zando's SA exit: 'Another warning to local online retailers about impact of Shein and Temu'

Consumers heard the news last week that online fashion retailer Zando is shutting down in South Africa by the end of the year, as well as in Tunisia.

The Africa-centered owner of Zando, Jumia Technologies, said it would be focusing on its other markets on the continent.

In conversation with Stephen Grootes, Africa business specialist Rutendo Hwindingwi says they're pulling out of SA and Tunisia because the contribution of these two countries individually is on average only about 3% of their total revenue value.

"They're saying 'in terms of the other nine countries we operate in - big players like Egypt, Nigeria and Kenya, that contribution is too small'."

Rutendo Hwindingwi, Founding Director - Tribe Africa Advisory

Looking at e-commerce from a global perspective, Africa is still 'a drop in the ocean', Hwindingwi remarks, even though 2023 figures put it at about $49 billion and growing on average by 14% per year.

"The global e-commerce size is $25 trillion, so comparatively the continent is still small... BUT having said that it just shows you the scale to grow."

Rutendo Hwindingwi, Founding Director - Tribe Africa Advisory

Hwindingwi highlights the impact of Chinese e-commerce retailers Shein and Temu not only on other foreign operations, but also local competitors.

"Those big e-commerce chains from China are definitely making an impact on the continent in terms of taking market share, in terms of challenging the local markets, even from a Takealot perspective in SA."

"This in itself is a bit of a warning as well to the local e-commerce players just to say there's a big opportunity for Africa, and the external players are here big time."

Rutendo Hwindingwi, Founding Director - Tribe Africa Advisory

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