Two international companies the size of Checkers Sixty60 coming after South African retailers
Chinese online retailers Shein and Temu have quickly become a major force in South Africa’s retail market, now attracting a similar number of users as Checkers Sixty60.
Their rapid growth has disrupted local retailers, who are struggling to compete with the low prices and massive product ranges offered by these Chinese e-commerce giants.
A report commissioned by the Localisation Support Fund found that in 2024, Shein and Temu made around R7.3 billion in sales in South Africa.
This gave them nearly 4% of the country’s total clothing market and a massive 37% of online clothing sales. The report also estimated that their rise has cost the local economy about R960 million in lost manufacturing sales and around 8,000 jobs since 2020.
Shein entered South Africa in 2020, while Temu only launched locally in 2024. Even in that short time, their combined market share of 3.6% is already higher than that of global brands like H&M, Cotton On, and Zara combined.
This success can be attributed to their business model, which involves connecting customers directly with manufacturers to sell low-cost goods to consumers, thereby cutting out middlemen.
However, this means shoppers face long delivery times and extra customs charges. A recent survey by World Wide Worx found that about half of South African online shoppers never use Shein or Temu, but among those who do, most are regular buyers.
Together, the two companies accounted for more than 15% of South Africa’s online shopping activity last year—behind only Takealot’s 32%, but ahead of Amazon and Superbalist.
New data from Reveal Insights shows that their reach may be even larger. It found that in 2024/25, Temu had a 16.6% market share (based on customer numbers), up sharply from 10.7% the previous year, while Shein’s share grew from 12.3% to 15.1%.
These figures are roughly in line with Checkers Sixty60’s share of 16.3%, showing how deeply the two Chinese platforms have penetrated the local market.
Wealthy South Africans not shy of Chinese retailers
Because their prices are so low, Shein and Temu’s market share by customer numbers does not translate directly into equal revenue.
This means that their shoppers tend to spend less per order than those using Takealot or traditional retailers. Despite this, their reach across income groups is expanding fast.
A joint study by Reveal and analytics firm Yazi, based on more than 750,000 real bank transactions, found that wealthier South Africans are spending more at Temu, while Shein remains more popular among lower-income shoppers.
Among people earning less than R10,000 a month, Shein accounted for 6.5% of clothing spend, compared to Temu’s 5%.
However, among those earning over R40,000, Temu’s share rose to nearly 8%, while Shein’s slipped slightly to 6%. Together, they made up about 13% of all clothing spending in the country.
For comparison, Mr Price and Pep remain South Africa’s biggest clothing retailers, but their popularity drops as incomes rise.
Mr Price takes 16% of clothing spend among people earning under R10,000, but only 13.5% among those earning more than R40,000. Pep’s share drops from 15% to just over 10% across the same income levels.
Part of Temu’s success comes from the fact that it sells far more than just clothing. Its top-selling products in South Africa include air fryers, smartwatches, phone accessories, drones, and home décor.
Many of these items are similar to what’s available locally, but at much lower prices. Some shoppers even buy in bulk to resell Temu’s goods at a markup.
By contrast, Shein’s focus remains firmly on fashion, with its South African site dominated by clothing and accessories.
This difference explains why Temu has become more popular among higher earners, who might be using it to buy electronics and household products rather than clothes.
E-commerce expert Andy Higgins, CEO of Bob Group, stated that recent changes in import duties have narrowed the gap between Chinese and local prices, but not enough to significantly slow their growth.
“The recent SARS changes have narrowed the gap, but even with import duties, many Chinese platforms still offer strong value compared to local retailers,” he said. “These platforms are here to stay, albeit in a more competitive and regulated environment.”
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