This article was originally published in early 2025 and was last updated on June 10, 2025.
- Tension: South African consumers are gaining access to global fashion at record-low prices, but it’s coming at the cost of local retail resilience and regulatory fairness.
- Noise: Headlines frame Shein and Temu as consumer heroes or villains, missing the deeper story of systemic imbalance, labor questions, and evolving trade policy.
- Direct Message: Shein and Temu aren’t just outcompeting South African retailers—they’re exposing the vulnerabilities of a retail system built for a different era.
To learn more about our editorial approach, explore The Direct Message methodology.
In the past year, South African online shoppers have flocked to platforms like Shein and Temu, drawn by slick apps, endless product choices, and jaw-droppingly low prices. But the very same traits that made these brands appealing to consumers have put unprecedented pressure on the local retail ecosystem.
By 2023, online retail in South Africa reached R71 billion—a 29% increase over the previous year, according to Nedbank.
The growth is real. And so is the disruption.
Shein entered the market in 2020 and by 2023 had become the most downloaded shopping app in the country. Temu, launched in early 2024 by China’s Pinduoduo, quickly followed suit.
Neither company has local infrastructure or stores. Both lean on aggressive digital advertising, AI-curated merchandising, and low-cost international logistics to bypass many of the traditional expenses South African retailers shoulder.
For shoppers, the pitch is hard to resist: Pay less. Get more. Skip the middleman. For local players like Shoprite Checkers, Pick n Pay, and Woolworths, the challenge is existential.
The seductive appeal of frictionless retail
Shein and Temu offer what digital marketers call “instant gratification infrastructure.”
They’ve optimized the customer journey to reduce friction and increase dopamine: swipe, click, buy, receive. Their supply chains are vertically integrated, data-rich, and insulated from local operational costs.
Meanwhile, South African retailers are navigating rising inflation, supply chain complexity, and legacy systems. They can’t match the speed or price point of their foreign counterparts—at least not without structural change.
It doesn’t help that Shein and Temu pour money into social media advertising. Their spend dwarfs most local competitors, giving them a disproportionate share of digital attention.
There’s also a trust gap. Legacy retailers have long been symbols of reliability. But younger consumers are more focused on novelty, affordability, and aesthetic alignment. Temu’s rise shows how fast consumer behavior shifts when price and convenience dominate the value equation.
The deeper risk to the system
Shein and Temu aren’t just outcompeting South African retailers—they’re exposing the vulnerabilities of a retail system built for a different era.
The success of these platforms doesn’t just reflect smart pricing. It reflects a global retail environment where borders blur, logistics move faster than regulation, and consumer behavior changes more quickly than most industries can respond.
For example, until July 2024, the “de minimis” tax rule allowed parcels under R500 to enter the country with minimal duties—putting local retailers at a steep disadvantage.
As of 1 July, all Shein and Temu orders are now subject to full import tax and VAT, a shift that levels the playing field but won’t reverse lost market share overnight.
Regulatory responses and looming questions
But this is also a moment of opportunity—particularly for local retailers willing to pivot. There’s growing space for hybrid models that blend the scale of global e-commerce with the nuance of regional relevance.
One emerging trend is the rise of localized marketplaces that curate products specifically for South African consumers, emphasizing cultural alignment, quality assurance, and fast delivery.
There’s also a trust dividend that local players can claim—if they double down on customer relationships and transparency.
Research from South African e-commerce reviews shows that consumer complaints about Shein and Temu often center not on price, but on issues like returns, customer service responsiveness, and uncertainty about product authenticity.
These are areas where legacy retailers, with their brick-and-mortar roots, still hold competitive edge.
In addition, mobile-first loyalty programs, personalized delivery options, and sustainability messaging are becoming more influential in purchase decisions.
Consumers are increasingly sensitive to where their goods come from and how companies treat workers. If local retailers can link these values to their offerings—and make them visible across the buyer journey—they may not need to compete on price alone.
Still, this will require more than branding. It will take digital transformation, smarter logistics, and a rethinking of what value means beyond cost. Retail isn’t just about product anymore—it’s about infrastructure, data, and trust.
The South African government is beginning to act. The Department of Trade, Industry and Competition is investigating Shein for potential tax avoidance.
Labor groups have sounded alarms over Shein and Temu’s alleged supply chain abuses, including risks of forced and child labor—a U.S. government investigation flagged Temu’s high-risk practices in particular.
But even if these issues are addressed, a larger structural reality remains: local retailers are up against platforms designed for scale, speed, and consumer segmentation at a level South African operations haven’t matched yet.
One potential counter-model is Amazon, which launched its South African marketplace in May 2024 with a strategy built around local sourcing. Over 60% of Amazon South Africa’s inventory is supplied by domestic vendors—allowing for next-day delivery, improved return processes, and regional economic integration.
If Shein and Temu want long-term viability in South Africa, they may need to localize. Without that, their advantage remains regulatory arbitrage rather than community value.
Conclusion: The cost of convenience is now visible
The meteoric rise of Shein and Temu in South Africa says less about fashion and more about leverage. These companies thrive by optimizing global advantages—cheap labor, lenient customs rules, and digital targeting—while sidestepping the obligations local retailers carry.
But the retail landscape is changing. With new import rules, regulatory pressure, and consumer scrutiny, South Africa is beginning to redefine what fairness in commerce looks like.
This isn’t just about two companies. It’s about the rules we write for the next generation of global-local competition—and whether they serve short-term savings or long-term sustainability.
