Shein, Temu Overtake Global Fashion Giants in South Africa's Online Market

Chinese e-commerce platforms Shein and Temu have surpassed international fashion retailers in South Africa, capturing a combined 3.6% share of the country's retail, clothing, textile, footwear and leather (CTFL) market in 2024.

Credit: SHEIN

The two platforms generated ZAR 7.3 billion (USD 405 million) in sales this year, according to a report released Tuesday by the Localisation Support Fund.

Shein entered the South African market in 2020, with Temu following in 2024. Their rapid growth has been driven by aggressive pricing, strategic marketing, and initial use of tax loopholes that gave them a competitive edge over local retailers.

The tax loophole, which allowed them to undercut domestic prices, was closed in 2023 after pressure from local businesses.

Credit: TEMU

Despite this, Shein and Temu now hold 37.1% of South Africa’s e-commerce CTFL market. Shein alone accounts for 28% of online ladies’ CTFL sales.

By comparison, international brick-and-mortar brands such as H&M, Zara and Cotton On collectively hold a 3.4% share of the overall CTFL market.

Domestic retailers have seen their market share decline from 75.3% in 2011 to 74% in 2024.

“Those international retailers have acquired this market share over a period of 13 years, and Shein and Temu have managed to match and surpass this in just a five-year period,” said Sean Mercer, principal consultant at consulting firm BMA.

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• Shein and Temu captured 3.6% of South Africa’s CTFL market in 2024

• Combined sales reached ZAR 7.3 billion (USD 405 million)

• Shein holds 28% of online ladies’ CTFL sales

Source: REUTERS