Shein to open pop-up store in South Africa to boost trade | City Press

BUSINESS

Fast-fashion giant Shein, known for its $5 tops and $10 dresses, will open a pop-up store in Johannesburg, South Africa in August as the online retailer aims to expand its brand recognition in the country.

Shein, founded in China, and its rival Temu have aggressively expanded worldwide as online shopping has surged after the COVID-19 pandemic. They have been accused of exploiting tax loopholes by exporting China-made products in small quantities to avoid higher duties.

“Bringing the Shein experience directly to the end consumer is a key part of Shein’s strategy,” the company said on Wednesday.

Given that Shein is a digital-first company, Shein’s hugely successful pop-ups are an opportunity for our consumers to touch and feel our products, as well as to interact and engage directly with Shein’s local brand ambassadors

Shein will open its pop-up store from 2 August to 11 August as an “exhibition space” for customers to try on trendy fashion and lifestyle products and order them online at a discount, the company said in an Instagram post.

READ: Why Shein is under fire in South Africa

Local influencers were tapped for a pre-opening marketing campaign.

Brick-and-mortar and online fashion retailers have urged South African regulators to impose a 45% import duty on all clothing item imports, no matter the price, to level the playing field

Shein, which is planning to go public in Britain, taps a network of largely China-based suppliers which take small initial orders and scale up based on demand.

READ: Takealot feels heat from China, competition authorities

A Shein spokesperson saids the retailer is engaging with South African regulators to ensure its continued compliance with local laws.

“That said, such tax measures are not critical to the success of our business or the competitive prices we offer our consumers. We keep our prices affordable through our technology-based on-demand business model and flexible supply chain,” the spokesperson added.

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