Two international companies so successful that local workers want them banned in South Africa
The rapid growth of Shein and Temu has led organised labour to call for the platforms to be banned in South Africa.
The unions argue that the Chinese online platforms risk jobs, competition, and the future of South Africa’s clothing industry.
Shein and Temu have attracted millions of shoppers with low prices, extensive product ranges, and convenient app-based shopping.
However, their growing popularity has raised concerns among local manufacturers and retailers, who argue that they are struggling to compete against international platforms.
The Congress of South African Trade Unions (COSATU) has resolved to campaign for a complete government ban on the two companies.
This follows a similar proposal by its affiliate, the Southern African Clothing and Textile Workers’ Union (SACTWU).
The union argues that the platforms threaten domestic manufacturing and employment by selling imported goods at prices local businesses often cannot match.
According to estimates cited by COSATU, the expansion of Shein and Temu could put up to 34,000 jobs in South Africa’s clothing, textile, leather and footwear industries at risk by 2030 if no intervention is taken.
A report by the Localisation Support Fund estimated that the platforms generated approximately R7.3 billion in sales in South Africa.
Shein entered South Africa in 2020, while Temu launched locally in January 2024. Both have benefited from consumers seeking affordable clothing, household goods, and accessories amid the cost-of-living crisis.
The report also suggested their combined sales have given them a substantial foothold in the local clothing market, beating the combined market presence of international retailers such as Cotton On, H&M, and Zara.
Labour unions have stressed that their pricing advantage is linked to cheaper overseas production, low shipping costs, and differences in the tax and regulatory conditions under which international and local businesses operate.
Local businesses needed to adapt
However, technology expert Siphumelele Zondi has criticised the proposed ban, arguing that South Africa cannot reverse the shift towards online shopping simply because foreign competitors are gaining ground.
“COSATU are smoking their socks if they think it would be constitutional to ban e-commerce or imports like Shein and Temu,” he said in an interview with The Money Show.
Zondi questioned the basis for the projected job losses but acknowledged that the growth of international online retailers could put pressure on traditional retail and domestic manufacturing.
He argued that local businesses needed to adapt to changing consumer behaviour rather than expect the government to remove foreign competitors from the market.
“You can’t turn the clock back on this sort of thing. What you have to do is compete,” he said.
Zondi pointed to established South African retailers that have invested in digital platforms to reach customers.
The Foschini Group operates Bash, while Shoprite and Checkers have expanded their online offerings through their digital retail services.
He also highlighted opportunities created by the growth of e-commerce, particularly in courier services, last-mile delivery and technology development.
While some traditional retail jobs may come under pressure, online shopping has created demand for delivery drivers, website developers, and workers who manage digital transactions.
The expansion of online marketplaces has also allowed individuals to earn money by selling second-hand clothing and other goods through platforms such as Yaga.
However, Zondi warned that consumers faced risks from fraudulent online stores, including scams designed to steal money and personal information. He advised shoppers to verify unfamiliar retailers before paying for goods.
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