Shein and Temu Tighten Their Grip on South Africa’s Clothing Market

South Africa’s major clothing retailers are facing growing competition from international online shopping platforms Shein and Temu, which continue to attract shoppers with low prices, extensive product ranges and aggressive online marketing.

The growing presence of the two platforms has raised concerns about the future of established retailers such as Mr Price, The Foschini Group (TFG) and Truworths, as well as the local clothing and textile manufacturing industry.

However, despite calls for the government to ban the platforms, recent industry research suggests that Shein and Temu are adapting to South Africa’s changing import regulations rather than preparing to leave the market.

According to ITWeb’s September 2026 report on the local online retail sector, both platforms are shifting towards locally compliant supply chains, local-dispatch services and merchant programmes. This could make their operations more established in South Africa over time.

Shein entered South Africa in 2020, while Temu launched locally in January 2024. Both platforms quickly gained attention by offering clothing, footwear, accessories and household goods at competitive prices.

Reuters reported in August 2025 that the two platforms generated a combined R7.3 billion in sales in South Africa in 2024, accounting for approximately 3.6% of the clothing, textile, footwear and leather-goods market.

Their combined position was even stronger online, where they accounted for an estimated 37.1% of South Africa’s online clothing and related product market.

These figures demonstrate why local retailers are concerned about the growing popularity of international e-commerce businesses.

For consumers dealing with high living costs, cheaper clothing can be attractive. For established retailers, however, the competition can put pressure on sales, pricing and profit margins.

Mr Price, TFG and Truworths operate established store networks and online shopping platforms, but they must compete with international businesses that have different supply chains and business models.

Mr Price has built its business around affordable fashion, making price competition particularly relevant to its market.

TFG operates a broad portfolio of brands, including Foschini, Sportscene and Jet, while Truworths competes in fashion retail and also has a significant international presence through its Office footwear business in the United Kingdom.

The challenge extends beyond attracting customers. Local retailers must manage stock, staff, rental costs, logistics and other operating expenses while responding to shoppers who increasingly compare prices online.

Business Day reported in August 2026 that South African clothing retailers had experienced pressure on their share prices amid weak consumer spending and intensifying competition. Market performance, however, is also influenced by each company’s financial results, operating costs and broader economic conditions.

South African authorities have already changed the customs treatment of low-value imported parcels, reducing a tax advantage previously available to some cross-border online purchases.

The South African Revenue Service introduced changes to the treatment of low-value imports, while subsequent tariff and customs enforcement measures increased the compliance requirements for international e-commerce businesses.

These changes were intended to address concerns that foreign online platforms could sell imported goods under more favourable tax conditions than local retailers.

However, stricter import rules have not eliminated the competition.

The September 2026 Online Retail in South Africa report found that Shein and Temu were increasingly adapting to the new environment by moving towards local fulfilment and supply-chain arrangements.

This means that their future competitiveness may depend less on shipping individual parcels directly from overseas and more on delivery speed, local inventory, merchant partnerships and operational efficiency.

The dispute has also become a major issue for South Africa’s clothing and textile manufacturing sector.

In October 2026, the Congress of South African Trade Unions (Cosatu) backed a campaign calling for offshore online shopping giants such as Shein and Temu to be banned.

The unions argue that low-priced imported goods threaten local manufacturing and employment. A study commissioned by the Localisation Support Fund estimated that the growth of international online retailers contributed to R960 million in lost local manufacturing sales and thousands of displaced or unmaterialised jobs between 2020 and 2024.

However, banning the platforms is not the only proposed response. Industry representatives have also called for stronger customs enforcement and a fairer competitive environment.

An outright ban could also reduce consumer choice and competition, making the policy debate more complicated than simply protecting local retailers from overseas competitors.

The latest developments suggest that South Africa’s retail industry is entering a new phase of competition.

Instead of relying exclusively on overseas deliveries, international platforms are adapting their business models to operate within the local regulatory environment. This could make it more difficult for local retailers to compete purely on price.

For Mr Price, Foschini and Truworths, the challenge will be to convince shoppers that their products, service, convenience and quality justify the price.

South African retailers still have advantages, including established brands, physical stores, local customer service and the ability to offer customers a more immediate shopping experience.

Ultimately, Shein and Temu are not guaranteed to dominate the market, and the calls for a ban do not mean that a ban will happen. But their continued adaptation suggests that local retailers will need to compete with them for the foreseeable future.

Sources: Bad news for Mr Price, Foschini, and Truworths: Shein and Temu are here to stay – Daily Investor

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