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IOL News
11 hours ago
- Business
- IOL News
The state of the adult industry in SA: A market under pressure
I started the Lola Montez Brand over 20 years ago. It was the first of its kind. An adult store that was more boutique than a store that made it safe for women to shop. It was a place where couples could get real advice about their relationship and purchase a range of toys to spice up the bedroom. Sharon Gordon is the brains behind the Lola Montez Brand leads the adult entertainment Industry and has revolutionized the way business is done. From conceptualization, to brand exposure and product development. Lola Montez is currently a upmarket boutique in Sandton, Johannesburg with services including events, parties, education and e-commerce. We went from 1 to 4 stores and back again over the years and recently closed all our bricks and mortar outlets to be online. We still offer the same educated and honest advice. I have wondered for some time now whether it is just me or whether we are all suffering. Yes, there certainly are more players in the market with fierce online competition. If your algorithms aren't perfect, you are nowhere to be found. Don't even think about advertising on social media, you'll be banned faster than you can say Butt Plug. I'm assured it's the same for everyone. The South African adult industry, once dominated by a few brick-and-mortar stores offering high-end, discreet and knowledgeable service, is now navigating choppy waters. A convergence of economic, regulatory, logistical, and digital challenges is threatening the survival of longstanding adult retailers and reshaping the landscape of the industry entirely. The Decline of Physical Retail: A Perfect Storm Retail across all sectors has been under pressure, but adult retail in South Africa faces unique hurdles. High commercial rentals—especially in premium, upmarket areas—have made it nearly impossible for adult stores to compete for desirable locations. Despite a more progressive approach to sexual wellness, adult shops still face stigmas that prevent them from gaining access to malls and retail zones with high foot traffic. Zoning laws and landlord reluctance mean many are forced into industrial areas or low-traffic locations, which impacts visibility and footfall and keeps the industry feeling sleezy. Coupled with rising utilities and security costs due to persistent load shedding and crime, maintaining a physical presence has become financially untenable for many businesses. The shift to online retail, accelerated by COVID-19, has only exacerbated this decline. Regulatory Red Tape and Technical Hurdles Beyond rental issues, South African adult retailers also face harsh regulatory and logistical hurdlesThe South African National Standards (SANS) require that all rechargeable adult toys—those containing lithium batteries—meet strict safety compliance standards. Importers must register, test, and certify each model, even if it's a variation of an existing design. This costly and time-consuming process significantly delays product launches and adds to overheads. Moreover, lithium batteries are considered dangerous goods for air transport, leading to additional courier fees and complex logistics. These costs are passed on to the consumer, making locally-sourced products far more expensive than the same items bought from international platforms—many of which skip compliance and safety procedures entirely. The Online Competition Conundrum Online giants like Temu, Shein, and Wish have further eroded the profitability of local Players. These platforms offer cheap adult toys, shipped directly from overseas, often without duties being paid or regulatory compliance being met. These products are rarely covered by warranties and come with no after-sales service or consumer protections. Consumers, facing their own financial constraints, are increasingly opting for lower-cost alternatives, despite the risks. The result? Local adult stores can't compete on price and are losing market share rapidly. Reputable South African brands that offered education, discretion, high-quality products, and in-store expertise are being edged out by volume-based, faceless e-commerce operations. The Bigger Picture: Industry at Risk This collision of factors—regulatory barriers, high rentals, unfair import practices, and international competition—is having a significant impact on the adult industry as a whole. Once-thriving businesses are closing their doors, scaling back operations, or being forced to compromise on quality to survive. The broader implications are concerning - fewer safe, informed spaces to explore sexual health and wellness, job losses in an already struggling economy, and a decline in consumer rights and product safety standards. What Can Be Done? If the adult industry in South Africa is to survive and thrive, multi-pronged action is needed: Lobby for Fair Access: Retailers and advocacy groups must lobby municipalities and shopping centres to treat sexual wellness retail like any other health and beauty offering. Education is key to breaking down stigma. Simplify SANS Processes: Regulatory frameworks must be reviewed and streamlined for small businesses. Consideration should be given to exemption categories or partnerships for low-risk devices. Local Manufacturing Incentives: Encouraging local production of adult toys could reduce reliance on expensive imports and create jobs. Government incentives for manufacturing could drive innovation and economic inclusion. Consumer Education: Campaigns must highlight the importance of quality, safety, and after-sales support. Consumers need to understand what they lose when they buy from anonymous overseas platforms. Collective Bargaining and Bulk Shipping: Local retailers could form cooperatives to pool resources for compliance testing and shipping, reducing costs and increasing bargaining power with regulators and couriers. Our wholesalers have entered the retail market making competition even more difficult. Digital Excellence and Hybrid Models: Investing in sleek, educational online stores with excellent service, discreet delivery, and local credibility could win back customers. Hybrid models that blend online with experiential pop-ups or events could also offer a future path. Those who have the capital are trying. Temu is still winning. The adult industry in South Africa is at a urgent and coordinated efforts to address the unique pressures it faces—from compliance costs to online competition—it risks becoming an underground or entirely imported market, devoid of trusted local brands and service. Preserving the industry isn't just about pleasure products—it's about access to safe, shame-free sexual wellness resources in a country that needs them more than ever.
Business Recorder
19 hours ago
- Business
- Business Recorder
Beyond poverty alleviation: crafting a comprehensive social policy for all
Social policy, whether taken as a sectoral policy or as a policy of issues depending upon the specifics of the relevant scholarship, inevitably lies at the core of political discourse and at many a time plays a decisive role as a determinant of success or failure of political parties contesting against each other in much of the developed world. During Musharraf's time period, as Pakistan was experiencing somewhat significant economic growth, even though for a variety of reasons, the general public anticipated generous spending on social welfare. However, it is noteworthy that since Pakistan did not have and even today it does not have a comprehensive and well-rounded social policy, the efforts in the direction of ensuring social welfare remained largely scattered and did not bear the much-desired results. Although a free market, which was the story back in the days of Musharraf, aids government in efficient delivery of public services since much of the same are outsourced to the private sector such as employment opportunities and etc., however, it acts as a double-edged sword also as reflected in increasing inequalities in the society. In such circumstances, the government needs to formulate a policy that is capable of mitigating the social inequalities while clearly defining the scope and range of public service delivery at government's end. A sound social policy has an overarching nature and has the elements namely, a clear definition of what social services a government aspires to deliver; the choices concerning those services; the range of those services and most importantly how the government is going to fund them. The housing policy of Pakistan, for an instance, aims at upgrading the existing housing societies in the country while engaging in capacity building of the marginalized sections of the society besides curtailing malpractices, inefficiencies, institutional weaknesses and mafia assaults adding to the miseries of Pakistani have-nots (National Housing Policy, 2001, p. 5). The national education policy is focused on reducing the number of out of school children alongside introducing a uniform education standard, bettering the education quality as well as imparting training for educators and school administrators (National Education Policy Framework, 2018, p. 7). Similarly, the national health vision targets increasing the access and affordability of healthcare services across the board especially for women and children as it promises to fulfill its global health responsibilities and adopting a universal healthcare model (National Health Vision Pakistan 2016-25). A critical analysis of these three policies reveals that none of these has any remotest linkage with a social policy with elements pertaining to definition of services, their range and funding sources. Therefore, Pakistan needs to reinvigorate its existing policies so as to chalk out a plan for devising a viable social policy containing all the elements mentioned before. Moreover, a social policy should not revolve just around the idea of poverty reduction rather it should focus on a more general conception of improving the standard of living across the board which includes entertaining the middle class as well. In Pakistani context, the social policy does not have to start from scratch. A new and broader vision can rather gel together the existing initiatives while addressing the institutional weaknesses and inabilities alongside the issues of financial embezzlement and governance which incapacitate the programmes to deliver on their goals. Governments, across the globe, follow different mechanisms when it comes to public service delivery. Some pay directly, in cash, to the people fulfilling the eligibility criteria for such stipends and patronage while others just improve the system and process of service delivery depending upon the nature of services and funding sources available. Historically, Pakistan has been all- a financier as well as social service provider, which is a persistent burden on Pakistan's financial resources. As a low-income country, Pakistan for sure does not fall in the category of the countries having the capability of adopting a welfare state model since Pakistan has a resource-scarce national treasury and a huge population. Dr Sania Nishtar, former Special Assistant to the Prime Minister on Poverty Alleviation and Social Safety, gives a plan as to how can a viable social policy be devised as per Pakistani dynamics. She suggests formulating an overarching and comprehensive social policy clearly outlining the objectives, range and funding sources for various social services which the government plans to offer to the general public; building on the initiatives already underway, and acting as redistributor (besides as a regulator depending upon the need of the hour). Even though it is in the greater public interest that the government outsources public service delivery to private entities to a larger extent, however, such outsourcing must not be confused with privatization rather the government must remain cognizant of the progress being made too. Furthermore, the partner in such cases does not necessarily have to be a private enterprise instead it can be the local government itself. As far as funding sources are concerned, various avenues can be explored such as raising equity funds as well as private and semi-government channels like Trust for Voluntary Organization and Pakistan Institute of Philanthropy. All that Pakistan needs to do is to revisit its utopian ideals and rationalize its aspirations for bringing about a magnanimous social change. A change that results in an improved standard of living of its citizens taking on a pragmatic and real-time approach jotting down the existing initiatives and defining their scope and range clearly while taking care of the sustainability factor. Copyright Business Recorder, 2025
