Temu and Shein Stir Concerns for South African Retailers

South Africa’s online shopping boom has brought international giants Temu and Shein into the spotlight, but not all are celebrating. Local retailers and consumer advocates warn that these platforms are shaking the market, driving down prices, and threatening thousands of jobs.

Consumer Protection at a Crossroads

Queen Munyai, CEO of the Consumer Goods and Services Ombud (CGSO), says the government must act decisively. Online shopping complaints dominate her office’s docket, and she stresses that foreign vendors who ignore South African laws should not have free access to the local market.

“Compliance must be a condition of access,” Munyai says. While Temu now operates local warehouse support in South Africa, making compliance easier, platforms like Shein have been harder to regulate.

The lack of stringent oversight has sparked public debate. Social media users have expressed frustration, with many highlighting the ease with which foreign platforms undercut prices while local suppliers navigate bureaucratic hurdles just to operate abroad.

Temu and Shein’s Market Surge

Temu launched locally in January 2024 and quickly captured market share, while Shein has been operating in South Africa for years. Both were accused of exploiting a South African Revenue Service (Sars) customs concession, which allowed a flat 20% import duty on orders under R500, a measure originally intended to streamline processing. Sars adjusted the rules in February 2025 to align with global import standards, but the damage to local pricing had already been felt.

Job Losses and Economic Ripples

A report from the Localisation Support Fund (LSF) estimated that Temu and Shein have contributed to the loss of roughly 8,000 jobs in clothing, textiles, footwear, and leather (CTFL) sectors. Simon Eppel of the South African Clothing and Textile Workers Union described their entry as “smash-and-grab economics,” warning that the effects go beyond CTFL and ripple across the economy.

“The impact could reach 35,000 jobs by 2030, if not more,” Eppel said. “These platforms aren’t just selling clothing they’re selling home goods, storage products, stationery, exporting jobs and draining local economic activity.”

A Call for Government Action

Munyai and local advocates argue that legislation, better consumer education, and stricter enforcement against non-compliant foreign vendors are crucial. South African retailers face significant pressure to remain competitive while foreign players benefit from simpler market entry and lower compliance burdens.

The stakes are high: between 2020 and 2024, Shein and Temu accounted for R7.3 billion in CTFL sales locally—nearly 37% of the e-commerce segment, highlighting both the opportunity and the threat posed by global e-commerce in South Africa.

With calls for reform growing louder, the question remains: will South African authorities level the playing field, or will Temu and Shein continue reshaping the local retail landscape?

{Source: My Broad Band}

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