Temu and Shein shake up South Africa’s fashion market – but at what cost?

For many South Africans, Temu and Shein have quickly become the go-to online destinations for affordable, on-trend fashion. With endless options, low prices, and delivery straight to your door, it’s no wonder these platforms have exploded in popularity.

But behind the bright colours and bargain deals, the local clothing and textile industry is warning of a much darker story.

From zero to billions in record time

Shein only launched in South Africa in 2020. Temu followed in early 2024. In that short time, they’ve already surpassed the combined market share of global fast-fashion brands H&M, Zara and Cotton On in the local retail, clothing, footwear and leather (R-CTFL) sector.

In 2024 alone, Temu and Shein generated a staggering R7.3 billion in sales here. The growth is powered by aggressive pricing, lightning-fast supply chains, and data-driven targeting that makes it almost impossible for local players to compete.

A report commissioned by the Localisation Support Fund warns that if this trend continues unchecked, the country could lose over R6.2 billion in manufacturing revenue and more than 34,000 jobs by 2030.

The hidden cost of cheap

According to the South African Clothing and Textile Workers’ Union, the flood of ultra-low-cost imports is driving down the prices local retailers can charge. Between 2020 and 2024, the industry lost an estimated R960 million in manufacturing sales, alongside nearly 3,000 factory jobs and over 5,000 retail jobs that might otherwise have existed.

These losses aren’t just numbers – they represent real people in cities like Durban, Cape Town and Johannesburg, where clothing factories have been pillars of community employment for decades.

The tax loophole backlash

Part of Temu and Shein’s appeal has been their ability to keep prices low by using a SARS concession introduced in 2007, which allowed items under R500 to avoid VAT and pay only a flat 20% duty.

The loophole sparked outrage among local manufacturers and retailers, who argued that it gave foreign giants an unfair advantage. After mounting pressure, SARS began phasing in stricter duties in late 2024, with full import rules taking effect in February 2025.

Still, industry insiders fear the changes came too late to slow the momentum these platforms have already gained.

Social media shoppers vs local industry

On TikTok, #SheinHaul and #TemuFinds videos rack up millions of views, with influencers gushing over the prices and variety. Many shoppers see it as a win for cash-strapped consumers during tough economic times.

But for local designers and factory owners, it’s a worrying sign of a future where price trumps local production. As one Cape Town clothing manufacturer told us, “If we can’t compete on price and people don’t value locally made, we’ll disappear.”

Can South Africa fight back?

Local fashion chains like Foschini, Mr Price and Woolworths have made small gains in e-commerce, but nowhere near the explosive growth of their offshore rivals. Industry experts say the only way to protect jobs is through a mix of stronger trade protections, consumer education, and innovation in local supply chains.

Whether that will be enough to stop the Temu and Shein wave is another question entirely. For now, the battle for South Africa’s fashion future is just beginning – and the stakes are worth billions.

Source:NewsDay 

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