Chinese e-commerce giants Shein and Temu have rapidly emerged as dominant players in South Africa’s online retail landscape, challenging both local and international brands with their aggressive pricing, vast product ranges, and mobile-first marketing strategies.
According to a report commissioned by the Localisation Support Fund, the two platforms generated R7.3 billion in sales in 2024, capturing 3.6% of South Africa’s total clothing market and a staggering 37% of online clothing sales. Their combined market share now exceeds that of global fashion brands H&M, Cotton On, and Zara, which together hold just 3.4%.
Shein entered South Africa in 2020, followed by Temu in 2024. Despite Temu’s recent arrival, its reach has grown rapidly, with Reveal Insights reporting that Temu’s customer share rose from 10.7% to 16.6% in 2025, while Shein’s grew from 12.3% to 15.1%. These figures now rival Checkers Sixty60, which holds a 16.3% share of online shopping activity.
Together, Shein and Temu accounted for 15.3% of South Africa’s online shopping activity, trailing only Takealot (32%), but ahead of Amazon and Superbalist.
The platforms’ rise has come at a cost. The Localisation Support Fund estimates that their growth has led to R960 million in lost manufacturing sales and the displacement or non-creation of 8,000 jobs since 2020. Local fashion retailers have struggled to compete, with JSE-listed companies like Mr Price, TFG, and Truworths seeing share price declines of up to 46% in 2025.
A joint study by Reveal and Yazi, based on over 750,000 bank transactions, revealed that Shein and Temu now account for 13.1% of total clothing spend in South Africa. Shein is more popular among lower-income earners, capturing 6.5% of clothing spend among those earning under R10,000/month, while Temu holds 5.1%.
Among higher-income earners (R40,000+), Temu’s share rises to 8%, while Shein’s dips slightly to 6%. This reflects Temu’s broader product offering, which includes electronics, home décor, and kitchenware, making it more appealing to affluent shoppers.
Temu’s top-selling categories include:
- Electronics and appliances (41%)
- Home décor and furnishings (37%)
- Kitchenware (32%)
- Jewelry (31%)
Popular items include air fryers, smartwatches, drones, and home organization tools like shoe racks and storage containers. Some users even buy in bulk to resell locally. Shein, meanwhile, remains focused on fashion, particularly women’s apparel, where it holds 28% of the online market.
The South African Revenue Service (SARS) has responded to the disruption by closing tax loopholes that previously allowed platforms like Shein and Temu to import goods under R500 with minimal duties. As of February 2025, all imports are now subject to tiered customs duties and VAT, ranging from 20% to 45%, depending on product type and value.
These changes have narrowed the price gap between Chinese and local retailers, but experts like Andy Higgins, CEO of Bob Group, believe the platforms will remain competitive:
Even with import duties, many Chinese platforms still offer strong value compared to local retailers. These platforms are here to stay, albeit in a more regulated environment.
