Shein and Temu are expanding across Africa, offering low prices and a wide range of products. Businesses and unions have expressed concerns that this growth could negatively impact local jobs. Many young consumers in African cities are increasingly shopping online, influenced by social media platforms like Instagram and TikTok. Shein, a Chinese company, has become one of the world's leading online fashion retailers, while Temu follows a similar model with an even broader product range. The appeal of these platforms is evident among Africa's young urban consumers, but there are growing concerns about the implications for local retailers and manufacturers.
In South Africa, Shein launched in 2020, with Temu following in 2024. A study commissioned by the Localization Support Fund indicated that these platforms generated approximately 7.3 billion rand (about $405 million) in 2024, accounting for 3.6% of the total clothing, textiles, footwear, and leather market, and 37% of online sales in the sector. The study also estimated that around 8,100 jobs in manufacturing and retail did not materialize during that period, with projections suggesting that over 34,000 additional jobs could be at risk by 2030.
Simon Eppel, a research director with the South African Clothing and Textile Workers' Union (SACTWU), noted that Shein and Temu have quickly gained market share, putting pressure on local manufacturers. Eppel stated, "They sucked up billions of rands […] in sales, and undercut local manufacturers," and the union is advocating for stricter regulations, including a potential ban on these apps in South Africa.
Industry experts have warned that online giants like Shein can operate at a pace that smaller African retailers cannot match. Digital data helps these companies identify consumer demand, while influencers and discounts drive purchases. Tsonam Cleanse Akpeloo, chairman of the Association of Ghana Industries, highlighted that the attractive prices of these platforms appeal to consumers in price-sensitive markets.
Local business owners face challenges when they cannot compete on price, particularly those relying on high-quality materials. Similar trends have been observed in Ghana's aluminum and hardware sectors. Nigeria is also a significant market for these Chinese retailers, with Temu establishing a dedicated platform and Shein expanding through influencers.
The presence of Shein and Temu is strongest in South Africa and Nigeria, with some reach in Ghana and Kenya. However, their products also reach customers in other African countries through freight forwarders, who facilitate delivery. Mariama Sow from Guinea-Bissau shared her experience ordering from Shein via a freight forwarder in Portugal, noting both satisfaction with the products and concerns about quality issues.
Governments are also focused on the implications for taxes and fair competition. South Africa has tightened regulations on small online imports to prevent international platforms from gaining a tax advantage over local retailers. Local retailers face significant challenges due to differences in operational costs compared to these online giants.
The competition extends beyond Shein and Temu versus local retailers; it encompasses the shopping habits of a young generation and the question of whether Africa will remain a consumer in the digital economy or become a producer. Akpeloo called for stronger actions against smuggling and better enforcement of customs and quality standards to protect local businesses.
While concerns about these platforms are valid, it is important to recognize the broader economic implications, including the value created by local textile workers compared to delivery drivers for orders placed in China. The challenge for African governments will be to provide access to affordable products and digital commerce while supporting their local industrial base.