Understanding the South African SHEIN customer

Over the past few years, the landscape of online shopping has seen a lot of growth, with Shein emerging as a significant force driving this expansion. As a fast-fashion giant, Shein has captivated a global audience by offering a blend of convenience, affordability, and an extensive range of products, catering to the needs of the modern, value-conscious consumer. This has resonated strongly with shoppers, particularly in South Africa, where the allure of low prices and seamless online experiences has fuelled Shein's popularity.

KLA, in partnership with YouGov, brings YouGov Profiles, a media and market segmentation tool housing 12,500 variables supporting in building portraits of consumers and driving insight of audiences with unrivaled granularity.

According to YouGov Profiles, Shein customers are highly focused on convenience and value, with 90% stating that online shopping simplifies their lives. Pricing is also significant factor for these consumers, as 80% of SHEIN customers state that they are always on the lookout for the lowest prices and will switch brands if a better deal is available. Additionally, 86% of Shein shoppers actively seek out sales, coupons, and deals when shopping, showcasing their savvy approach to finding the best affordability. ?

69% utilize gift vouchers, 65% rely on discount cards, and 62% opt for online promo codes when shopping.

These behaviours align closely with the global DHL shopper trends report[1], which emphasize the importance of reduced prices, discount codes, and rewards—these are driving factors that resonate strongly with Shein's customer base. According to a study by Retail Dive, Shein offered discounts on 86% of its products in 2020, with an average discount of 50%. This promotional strategy has been highly effective in attracting price-sensitive consumers and driving sales growth[2].

In the last three months, 96% have bought clothing or accessories, 88% shoes and 85% health and beauty goods. Despite preference for online shopping, 74% still appreciate the tactile experience of touching and feeling products before purchase, indicating a blend of digital and physical shopping preferences. YouGov profiles shows that the top 5 most considered brands (excluding Shein) from the Shein customers are Ackermans (29%), Cotton On (27%), H&M (27%), Foschini (24%) and Legit (23%) – all ranking significantly higher than the national South African population.

Shein customers also demonstrate a nearly even split between the use of online and offline shopping, with 26% mostly purchasing online. ?In fact, 55% use a 'click and collect' service, and 38% might see something in-store and later buy it online, highlighting the fluidity between digital and in-person shopping experiences.

With this need for fluidity, a seamless user experience plays a vital role in driving consideration and usage. Frustrations like high delivery costs and lengthy delivery times, are common among global online shoppers, aligning to the South African Shein customer. YouGov Profiles highlight that 78% of this customer base prioritizes speed and convenience. In South Africa, where Shein is the most popular global marketplace, customers value knowing their delivery provider prior to making a purchase, with 75% stating this as crucial—significantly higher than the global average[1].

While these factors are important, digital communications methods continues to lead to a purchase but traditional media is still a very valid form of communicating. Profiles shares that the top 5 communication types that have lead to purchase are offers via social media (45% - significantly higher than the national South African population), branded emails (33%), direct mail (30%) online newsletters (28%) and brand commercial on a mobile device (26%). ?

Shein’s success in South Africa hinges on its ability to deliver convenience, value, and a seamless shopping experience. With a strong blend of online and offline interactions, Shein's customers are savvy, price-conscious, and driven by speedy delivery. The impact of both digital and traditional media on their purchasing decisions underscores the need for a multifaceted engagement strategy to effectively reach this dynamic consumer group.

Methodology:

Profiles:? Segmentation and media planning tool. YouGov Profiles makes it simple to find and understand the audience that matters most to you. With data collected daily, it gives you the power to build and customise a portrait of your consumers’ entire world with unrivalled granularity.?More than 12,500 variables are available in South Africa.

Dataset:? 2024- 08 – 25

Population:? Clothing and Footwear, Shein current customers 18+ (52 weeks)

n ~ 192

Ackermans CottonOn H&M TFG (The Foschini Group) ALDO Group Tekkietown Zara SHEIN

References:

[1] 2024 Online Shopper Trend https://www.dhl.com/global-en/microsites/ec/ecommerce-insights/insights/reports/2024-ecommerce-trends-report.html

[1] 2024 Online Shopper Trends https://www.dhl.com/global-en/microsites/ec/ecommerce-insights/insights/reports/2024-ecommerce-trends-report.html

[2] Marketing Scoop- The Secret Behind Shein‘s Unbelievably Low Prices: An In-Depth Look: https://www.marketingscoop.com/consumer/why-is-shein-so-cheap/