Too high expectations dampened the excitement that followed low-cost online retailer Shein’s initiative to take its top-selling items to brick-and-mortar pop-up shops.
It’s just wrapped up its seventh pop-up store in Australia, while new data reveals rival Temu is now more popular among Aussies.
However, Shein is yet to calculate its success in other regions where it launched pop-up stores for the first time.
Shein has been focusing on “bringing the experience directly to the end consumer,” stressing that this is part of its main strategy.
You can look, but you can’t buy
This month, the Chinese-based fast-fashion retailer opened a pop-up store in Johannesburg, South Africa, for the first time. It hopes to expand its brand recognition among bargain hunters.
The South African Revenue Service is set to impose a new tax on small clothing imports like Shein and Temu. When implemented, the import duty charge will rise to 45% plus VAT on all small cheap clothing imports flooding the market.
A Shein spokesperson told Reuters that it is constantly speaking to governments to comply with relevant laws.
The e-commerce company revealed on social media to unimpressed customers that its latest pop-up store will only serve as an “exhibition space” where customers can try on clothing but not make any purchases.
This has drawn criticism from disappointed consumers, who are furious that they won’t be able to swipe their credit cards and take home garments immediately.
Shein’s Perth pop-up store
Shein also hosted its seventh pop-up store in Australia, this time in Perth last month. While many were pleased with the introduction of affordable clothing amidst the cost-of-living pressure, others were concerned.
Many complained about long queues and concerns over labor practices involved in making the garments.
Temu has a more substantial presence in Australia than Shein. The latest data released by Statista reveals Temu is far more prevalent among shoppers in this region.
The survey conducted in 2024 reveals that 1.6 million Aussies shop monthly in Temu, while Shein attracted an estimated 550,000 less than its rival.
First Amazon, now Shein
Just months after Amazon set up shop in South Africa to explore a new market of opportunities, Shein also hopes to take advantage of the e-commerce pie.
It’s been aggressively focusing on marketing the online store, as rival Temu is receiving popularity among online shoppers.
Shein and Temu have received a raft of consumer complaints, which have been investigated by the European Union’s digital services regulation.
They are accused of transgressing the Digital Services Act (DSA).
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
