Market Domination at a Cost

Since entering South Africa (Shein in 2020 and Temu in 2024), these platforms have captured 3.6% of the CTFL (clothing, textiles, footwear, and leather) market, generating R7.3 billion in sales in 2024 alone. However, a study by the Localization Support Fund reveals the devastating flipside:

• 8,000 jobs lost between 2020–2024
• R960 million wiped out from local manufacturing sales
• Projected 34,000 job losses by 2030 if current trends continue

Proudly South Africa CEO Eustace Mashimbye called the figures "very alarming", emphasizing the threat to the Retail-CTFL Master Plan, a government initiative to revive domestic manufacturing. "This progress sets us on a back foot," he warned.

"Smash-and-Grab" Tactics Exposed

Simon Eppel of the South African Clothing and Textile Workers’ Union (SACTWU) likened Shein and Temu’s model to "smash-and-grab economics":

• Predatory Pricing: Ultra-low prices undercut local retailers through questionable practices, including alleged labor rights abuses in offshore factories.
• Tax Avoidance: While SARS has closed some import VAT loopholes, Eppel noted "the playing field is still uneven."
• Market Flooding: "They externalize costs to South African society," he said, citing job losses that reduce consumer purchasing power and exacerbate poverty.

Eppel warned the crisis extends beyond clothing: "This will hit furniture, automotive parts, and stationery next."

Calls for Policy Intervention

Mashimbye proposed localization mandates inspired by other countries:

• Require e-commerce platforms to manufacture a percentage of goods locally.
• Strengthen customs enforcement against undervalued imports.
• Coordinate with SARS and the Competition Commission to address predatory pricing.

"We need political will to prioritize jobs over short-term consumer bargains," he stressed.