What: The rise of ultra-cheap, frictionless global marketplaces is forcing local retailers to adapt through curation, agility, and new value propositions.

Why it is important: The success of global marketplaces underscores the importance of regulatory adaptation, strategic partnerships, and a renewed focus on customer experience for local players.

The rapid expansion of global e-commerce platforms such as Temu, Shein, and Amazon is fundamentally altering the competitive landscape for local retailers. These digital-first giants leverage scale, supply chain innovation, and aggressive pricing to deliver unprecedented convenience and affordability, setting new consumer expectations for speed and value. Local retailers, constrained by higher costs, regulatory burdens, and limited reach, are challenged to differentiate themselves through curated assortments, storytelling, and superior service. As regulatory changes—such as the closure of tax loopholes—begin to level the playing field, local players have an opportunity to reclaim market share by emphasizing quality, ethics, and unique experiences. The most resilient retailers are those who adapt quickly, embrace collaboration, and leverage marketplace infrastructure to enhance their offerings. In this evolving environment, success depends on the ability to innovate, build trust, and deliver value that goes beyond price alone, ensuring relevance and resilience amid global digital disruption.

IADS Notes: The rapid rise of global e-commerce platforms like Temu and Shein is fundamentally reshaping retail competition, pricing, and consumer expectations, as seen in their capture of 3.6% of South Africa’s retail clothing market and 37.1% of e-commerce fashion sales within just five years (Inside Retail, August 2025). Their disruptive, digital-first strategies—built on ultra-low pricing models and supply chain innovation—have challenged both local and international players, but also face increasing regulatory scrutiny, as detailed by The Diplomat (March 2025). The impact of regulatory changes is evident in the US, where the elimination of the $800 duty-free threshold led to a dramatic drop in user engagement for Shein and Temu, creating new opportunities for domestic retailers and established platforms like Amazon (Financial Times, June and February 2025). In response, local retailers are focusing on supply chain agility, curation, and storytelling to differentiate themselves, as highlighted by Forbes (August 2025), while also redefining value to emphasize quality, trust, and experience over price alone (BoF, January 2025). The most resilient retailers are those who adapt by integrating new revenue streams, leveraging marketplace infrastructure, and embracing collaboration, as shown in BCG’s June 2025 analysis. These developments underscore the need for continuous innovation, strategic adaptation, and a renewed focus on customer value in the face of global digital disruption.

Does outrage over Shein and Temu miss the real retail lesson?