Shein and Temu linked to over 8,000 lost jobs in South Africa, report finds
The report examined the effect of offshore e-commerce retailers on South Africa's clothing, textile, footwear, and leather (R-CTFL) industry.
"In 2024, Shein and Temu collectively achieved approximately R7.3 billion in sales, accounting for 3.6% of the total R-CTFL market and 37% of the sector's e-commerce sales," the report noted.
"This rapid growth has come at a notable cost to the local economy. The estimated displacement is estimated to include R960 million in lost local manufacturing sales, 2,818 associated manufacturing jobs that may have materialised, and 5,282 unmaterialised retail jobs from 2020 to 2024".
According to the report, this disruption is largely driven by Shein and Temu's highly digitised and cost-efficient business models, which allow them to offer a wide variety of products at ultra-low prices that local retailers struggle to match.
"Their business models also leverage significant cost advantages through de minimis trade allowances, offshore manufacturing, low shipping costs, and data-driven consumer targeting," the report continued.
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