Takealot Targets Rural Markets to Counter Global Competitors

In a strategic move to fend off competition from global players like Temu, Shein, and Amazon, South Africa's leading e-commerce platform, Takealot, is focusing on expanding its reach into rural and township areas. The company has hired around 2,500 personal shoppers to assist these consumers with online shopping, and plans to increase this number to 5,000 by 2028. Takealot is also investing in automation to boost operational efficiency.

Expanding in South Africa's Rural Areas

Takealot’s expansion into townships and rural regions is part of a larger effort to overcome pressure from international competitors entering the South African market. With Temu and Shein already competing for price-sensitive consumers, Takealot aims to tap into underserved areas where e-commerce adoption is lower. The company’s CEO, Frederik Zietsman, pointed out that while international competition has had an impact, rising business costs have been an even more significant challenge.

Takealot is positioning South Africa as a strategic hub for expanding into the broader African market. With increasing mobile internet users and the widespread use of digital payment methods like “buy now, pay later,” the country is seen as an ideal entry point into Africa’s growing digital economy.

The Personal Shopper Strategy

To address the digital divide in rural areas, Takealot is focusing on recruiting personal shoppers to assist consumers less familiar with technology. These personal shoppers help guide local shoppers through the online ordering process, making e-commerce more accessible to those with lower digital literacy.

The initiative has already proven successful, with Takealot recruiting approximately 2,500 personal shoppers. By 2028, the company aims to increase this to 5,000. Personal shoppers have already helped customers purchase a variety of products, from air fryers to books, many of which were ordered by consumers living outside urban areas.

Dark Stores and Automation

In addition to expanding its workforce of personal shoppers, Takealot is also focusing on automation to increase efficiency. The company is investing in "dark stores" — facilities designed specifically for fulfilling online orders. These stores are typically located near distribution centers and help streamline the order fulfillment process. Takealot currently operates four dark stores and plans to expand in the coming months. Additionally, the company has invested in robotics to enhance its warehouse operations, having recently spent 19 million ZAR ($1 million) on robotic equipment.

Conclusion: Takealot's Strategy for Growth

While facing stiff competition from global e-commerce giants, Takealot’s focus on rural and township markets, as well as its investment in automation and personal shopper services, provides the company with a distinct competitive advantage. With e-commerce in South Africa expected to grow significantly in the coming years, Takealot’s localized approach and focus on operational efficiency position it well to remain a leading player in the African market.