The False Promise of Affordability

While consumers flock to Shein and Temu for bargain prices, Eustace Mashimbye challenged the notion of true savings:
"These products seem cheap, but how soon do you replace them? It’s like the saying ‘wood is deer’—cheap today, expensive tomorrow."

Simon Eppel highlighted the broader economic trap:

• Job losses reduce incomes, forcing consumers to rely even more on ultra-cheap imports.
• "It’s a downward spiral into social instability," he said, citing rising inequality.

Systemic Risks

1. Tax Base Erosion: "Every rand spent on these platforms leaves the country," noted Mashimbye. Lost jobs mean fewer taxpayers to fund services.
2. Informalization: Local manufacturers face pressure to cut wages or operate informally to compete.
3. Cross-Sector Threat: Eppel warned that "no industry is safe," with Shein/Temu expanding into furniture, tools, and more.

Paths Forward

1. Consumer Awareness: Educate buyers on the true cost of cheap imports.
2. Policy Levers:
   • Local Content Rules: Mandate e-commerce platforms to source or manufacture locally.
   • Tariff Enforcement: Strengthen customs checks to prevent undervaluation.
3. Industry Solidarity: Mashimbye urged retailers and unions to lobby collectively: "We did it with the Master Plan—we can adapt."