Shein and Temu Rapidly Reshape South Africa’s Retail and E-commerce Markets

Edited By : Fatomatou konè

Chinese-founded e-commerce platforms Shein and Temu have rapidly expanded their presence in South Africa’s retail sector, capturing a combined 3.6% of the country’s clothing, textile, footwear, and leather (CTFL) market in 2024 equivalent to 7.3 billion rand (approximately $405 million), according to a recent report by the Localisation Support Fund. Shein entered the market in 2020, followed by Temu in 2024, and both platforms have leveraged aggressive pricing strategies, targeted digital marketing, and previously unregulated tax advantages to build a swift and influential foothold.

The platforms’ success has coincided with a decline in the market share of domestic retailers, which fell from 75.3% in 2011 to 74% in 2024. Traditional international brands such as H&M, Zara, and Cotton On collectively hold a 3.4% share less than the combined presence of Shein and Temu. Analysts suggest that the latter’s appeal among price-conscious consumers has intensified pressure on local players, prompting regulatory changes that closed the tax loophole benefiting foreign e-commerce firms.

The e-commerce segment reveals an even more significant transformation, with Shein and Temu now accounting for 37.1% of South Africa’s online CTFL sales. Shein alone holds 28% of the women’s online apparel market. “International brands took 13 years to gain a 3.4% market share, yet Shein and Temu matched and exceeded that within just five years,” noted Sean Mercer, principal consultant at BMA, highlighting the disruptive scale and speed of their expansion.