Shein and Temu have defended their business models saying that their rapid growth in SA and other markets reflect strong consumer demand for value.
The Chinese fashion majors also said consumers were looking for affordability.
This as both companies face mounting scrutiny over their effect on industries and joblessness.
The e-commerce retailers have grown their share of SA’s online market in recent years, capturing billions in annual sales as shoppers increasingly turn to digital platforms for clothing and household goods.
Their growth and impact however, have ruffled feathers with policymakers and industry bodies now weighing measures to protect local manufactures and retailers from the offshore competition.
Shein has told Business Day that millions of consumers worldwide, including a “large growing” base in SA, choose to shop with the brand because of its focus on value and quality. The retailer operates what it calls a customer-driven, on-demand model using digital supply chain technology to respond to real time purchasing trends rather than forecasting future demand.
“We believe our approach represents part of the solution by reducing overproduction and waste at the source, and maintaining affordability,” it said.
The statement comes in response to a recent study commissioned by the Localisation Support Fund and conducted by research firm BMA, which warned that more than 34,000 local jobs could be lost by 2030 due to the rise of offshore e-commerce platforms.
Shein and Temu generated R7.3bn in local sales in 2024, disrupting the local clothing and manufacturing sectors. The report said 8,000 jobs have already been shed.
Manufacturing is vital to the country’s economic growth, particularly labour-intensive sectors such as clothing, textiles and automotives. It creates direct and indirect jobs in factories, logistics, retail and services. It also contributes to GDP and contributes to export earnings.
But, according to the report, SA manufacturers are excluded from the offshore e-commerce global supply chains, threatening the goals of the Retail–Clothing Textile Footwear Leather Masterplan aimed at reviving domestic production. The report says the broader economy could suffer, with R6.2bn in local manufacturing sales at risk.
In reaction, Shein said it was committed to empowering local brands and creative talent, citing its recent partnership with local brand House of One.
“We are proud that millions of consumers around the world, including our large and growing customer base in SA, choose to shop with us because they recognise our focus on value and quality,” Shein said.
“We are committed to building on this by empowering more local brands and creative talent to engage with Shein consumers around the world, as demonstrated by our recently announced partnership with local SA brand, House of One.”
Temu, which has also been prolific in the local e-commerce market, has positioned itself as a boon to local shoppers saying that its presence expands consumer choice and meets needs.
“Temu has expanded the range of quality products available to SA consumers, giving them greater choice and access to items that meet their needs.”
The Southern African Clothing and Textile Workers’ Union (Sactwu) criticised the proliferation of e-commerce platforms as “smash-and-grab economics” and urged localisation mandates.
After other countries such as India, Brazil, Indonesia, and Turkey imposed import controls and digital regulations, SA has also begun responding by scrapping low-value parcel exemptions, but the report called for stronger compliance and consumer protection, better digital infrastructure and a push to link local suppliers with online demand.
At the time of publication, the departments of trade & industry, and labour had not yet responded to queries.
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