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Shein and Temu Outpace Global Retail Giants in South Africa’s Fashion Market

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China-founded e-commerce retailers Shein and Temu have rapidly captured a combined 3.6% share of South Africa’s retail clothing, textile, footwear, and leather (CTFL) market, generating sales worth 7.3 billion rand ($405 million) in 2024, according to a new report.

Shein entered South Africa in 2020, with Temu following in 2024. Both companies have disrupted the local retail sector through aggressive pricing strategies, targeted marketing, and exploiting tax loopholes that initially gave them a competitive advantage over domestic retailers. The tax loopholes were closed last year after calls from local retailers and regulators.

The Localisation Support Fund (LSF) report highlighted a decline in domestic retailers’ market share of the CTFL sector, dropping from 75.3% in 2011 to 74% in 2024. Meanwhile, established international brick-and-mortar brands such as H&M, Zara, and Cotton On collectively hold a 3.4% share.

Shein and Temu together now control 3.6% of the overall CTFL market and a significant 37.1% of South Africa’s e-commerce CTFL market. Shein alone accounts for 28% of online ladies’ CTFL sales.

Sean Mercer, principal consultant at BMA, emphasized the speed of their rise: “Those international retailers have acquired this market share over 13 years, and Shein and Temu have managed to match and surpass this in just five years.”

Pandora Considers Restructuring Its Struggling China Business Amid Sales Decline

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Danish jewelry giant Pandora is exploring options to restructure its operations in China after years of steep declines in both online and offline sales, according to sources familiar with the matter. The company is reportedly in talks with China-based investment funds and e-commerce partners about potentially licensing its brand and assets, including existing inventory, for a period of five years.

Pandora, the world’s largest jeweler by volume, has faced significant challenges in China, the world’s second-largest economy. Post-pandemic consumer slowdown, a widespread property market crisis, and intense competition from local, digitally savvy brands in the crowded e-commerce space have all taken a toll. Additionally, Chinese consumers have shown a growing preference for gold and higher-value jewelry over Pandora’s offerings.

In a statement to Reuters, Pandora acknowledged the need to reposition its brand in China and said it was working on a turnaround that “will take time.” The company reaffirmed its commitment to the Chinese market but did not comment directly on possible restructuring plans.

Financial filings reveal Pandora’s revenue in China fell nearly 80% to 416 million Danish crowns ($65 million) in 2024, down from 1.97 billion crowns in 2019. The country’s contribution to Pandora’s overall revenue shrank from about 11% to roughly 1% during that period. The business has seen considerable leadership turnover, with three managing directors since 2022. The current managing director, Thomas Knudsen, began in January, shortly before Pandora announced plans to close 50 stores in China this year.

Experts warn that finding a suitable partner or stakeholder for Pandora’s China business may be difficult given the ongoing market headwinds and weak performance. Jonathan Yan, a principal at consulting firm Roland Berger in Shanghai, said financial investors are unlikely to be interested, though e-commerce firms focused on higher-margin brand ownership might consider a deal.

The restructuring model being considered could resemble Gap’s 2022 sale of its China business to Baozun, a leading Chinese e-commerce partner, for $40 million to $50 million. The potential value of a Pandora deal remains unclear.

Sources indicate that Pandora’s e-commerce sales in China have declined more sharply than in physical stores. An acquisition by a local operator with expertise in Chinese e-commerce could offer a better chance at recovery, though any turnaround effort is expected to be costly.

Yan noted, “They will need to burn money and have a very innovative approach, and even then it won’t be easy.”

Nvidia-backed Perplexity launches AI-powered Comet browser to challenge Google Chrome

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Nvidia-backed startup Perplexity AI announced on Wednesday the launch of Comet, a new AI-powered web browser designed to compete with Alphabet’s dominant Google Chrome. The browser aims to revolutionize web navigation by using intelligent AI agents capable of thinking, acting, and deciding on users’ behalf, streamlining tasks into a conversational experience.

Google Chrome currently dominates the global browser market with a 68% share as of June, far ahead of competitors like Safari, Microsoft Edge, and Firefox.

Comet offers users a unified interface where they can ask questions, perform tasks such as booking meetings, compare products, and summarize complex content—all via a built-in AI assistant. The browser targets simplifying workflows with natural language interactions.

Currently, Comet is accessible to subscribers of Perplexity Max, which costs $200 per month, with plans for a wider rollout by invite over the summer.

Backed by investors including Jeff Bezos, SoftBank, and Nvidia, Perplexity is positioning Comet not only as a browser competitor but also exploring new revenue avenues through advertising and e-commerce integration.

The move follows similar AI enhancements by competitors: OpenAI added a search engine feature to ChatGPT, and Google launched AI Overviews, an AI-driven search summary tool, last May.

Comet prioritizes user privacy by storing data locally and not using personal information for AI model training—a key differentiator likely to attract privacy-focused users.

However, Perplexity faces criticism from media companies like News Corp, Forbes, Wired, and Dow Jones for allegedly using their content without permission or payment. In response, Perplexity has introduced a publisher partnership program aimed at fostering collaboration with news organizations.