Shein and Temu Rapidly Gain Ground in South Africa’s Fashion Market

Chinese e-commerce giants Shein and Temu are experiencing remarkable growth in South Africa’s fashion sector. Together, these platforms reached total sales of 7.3 billion rand (approximately $405 million) in 2024, capturing 3.6% of the market and strengthening their strong presence in the region.

Rising E-Commerce in South Africa

Shein entered the South African market in 2020, followed by Temu in 2024, and both have grown rapidly since. Their aggressive pricing strategies and effective marketing efforts have allowed them to surpass traditional local and international retailers. This shift caused local retailers’ market share to decrease from 75.3% in 2011 to 74% in 2024.

Shein holds a significant 28% share in the online women’s apparel segment and dominates 37.1% of the overall e-commerce fashion market. Meanwhile, international brands such as H&M, Zara, and Cotton On maintain a combined market share of only 3.4%.

The rapid growth is driven by strong consumer appeal through competitive pricing and fast delivery services. However, after the South African government ended the “de minimis” tax exemption last year, these companies faced partial reductions in cost advantages. Local retailers have reported resulting price increases and a rise in customer complaints.

In conclusion, the rise of Shein and Temu in South Africa is reshaping the local retail market, underscoring the growing importance of digital transformation and innovative business models.