Kingsmead: Tax them, don’t ban them

Ryan Davidson

Is your business affected by Temu and Shein, and can you quantify that in any way?
We have not significantly felt the effect of Temu and Shein, that being said, it is early days and apparel retailers would probably feel the effects first.

How do their prices compare to yours?
From what I have seen both Temu and Shein offer a low-price model, but questions remain on the quality of their merchandise.
 
How does their variety, service, quick delivery and returns policy compare with yours?
I think we can compete with them on all fronts in the variety of our stock to our quick delivery of 3 days or less and our simple return policy for customers. 

Do you have any idea whether your business is more or less affected by Temu/Shein than the public company retail chains?
Cannot comment. I don’t have enough insight on the public companies.
 
Should international e-commerce sites be taxed or penalised more heavily than local retailers?
They (TEMU and SHEIN) need to be taxed HEAVILY and South African jobs protected!
Local retailers are creating jobs for the local economy and should be encouraged to continue this.    

Should they be banned in SA?
One should maybe investigate the barriers of entry that China puts in place on external competitors to their market and follow a similar model here.
I don’t agree with an outright banning but a levelling of the playing field so to speak is important. 

Is Amazon as much of a threat as Temu/Shein?
It’s too early to say but at least with Amazon retailers and manufactures are also able to utilize their marketplace structure.

Can your business (and your suppliers) compete with them on a level tax playing field?
I would like to think we can.  Luckily, we compete in the mid to upper market segment, so price is not the only determining factor. Customers need quality products that last!
 
Is there any point in appealing to local consumers to buy locally?
Yes, there are several compelling factors such as the support of local economy, quality, sustainability, personalized service, community connection, and transparency on local sourcing.  Education of the local consumers is VERY important.

Do they source as ethically or more ethically than your business, in your opinion, and do consumers care?
The lack of transparency leaves a big doubt in the ethical sourcing methods of both Temu and Shein and this should be something the South African DTIC scrutinize in detail.  I would hope that informed consumers care as their actions will have a direct impact on the local economy and many start-up businesses.