Chinese fast-fashion platforms Shein and Temu reshape African retail, threatening local jobs and industry

A T-shirt for a few dollars, along with jewelry, shoes and accessories — all delivered straight to your door. For many young people in African cities, shopping no longer starts in a store.

They scroll through Instagram or TikTok, see influencers showing off their latest purchases, and place an order with just a few clicks.

This combination of extremely low prices, a huge selection and aggressive social media marketing has made Chinese company Shein one of the world's most successful online fashion retailers.

Temu, also from China, follows a similar model with an even broader range of products.

For Africa's young, urban consumers, the appeal is obvious. But as more purchasing power flows directly to Asia through these platforms, another question is becoming increasingly important: What happens to local retailers, manufacturers and jobs?

South Africa shows the impact

South Africa is currently the clearest test case. Shein launched there in 2020, followed by Temu in 2024.

According to a study commissioned by the Localization Support Fund, the two platforms generated around 7.3 billion rand (about $405 million) in 2024. That represents 3.6% of the total market for clothing, textiles, footwear and leather, but already around 37% of online sales in the sector.

The study also estimates that 2,818 manufacturing jobs and 5,282 retail jobs failed to materialize during that period, a combined impact of about 8,100 jobs. By 2030, more than 34,000 additional retail and manufacturing jobs could be at risk under the study's modeled scenarios.

Simon Eppel, a research director with the South African Clothing and Textile Workers' Union (SACTWU), sees this as a growing threat to the domestic industry.

He says Shein and Temu have gained a significant market share in a short period of time and put local manufacturers under pressure.

"They sucked up billions of rands […] in sales, and undercut local manufacturers," Eppel said. The union is calling for stricter controls.

"In fact, we propose to ban these apps in South Africa," added Eppel, noting that the SACTWU sees such a move as one possible measure to counter the effects of the price pressure.

Aggressive price competition

Industry experts have cautioned that online giants such as Shein can operate at a speed that is difficult for a small African retailer to match.

Digital data shows which products are in demand, while influencers, discounts and a constant stream of new offers encourage consumers to buy.

For users, the line between entertainment and shopping is becoming increasingly blurred. But price is a crucial factor for many consumers.

Tsonam Cleanse Akpeloo, chairman of the Association of Ghana Industries, Accra chapter (AGI Accra), stresses that the offers are particularly attractive in price-sensitive markets.

"Their prices are attractive in price-sensitive economies where consumers naturally look for products that fit their budgets," he told DW.

Local business owners say that problems arise when they can no longer compete on price.

Companies that rely on high-quality materials and higher standards are put at a competitive disadvantage.

In Ghana, Akpeloo has observed similar developments in sectors such as aluminum and hardware.

Nigeria: Cheap imports for urban youth

Nigeria is also an important market for the major Chinese online retailers. Temu has a dedicated platform for the market there, while Shein is building its reach primarily through influencers and fashion content.

The appeal is clear: a wide selection, low prices and access to international trends. But Nigeria has already experienced what cheap imports can do to a local industry.

For governments, therefore, the issue is not just fashion. It is also about the conditions under which local businesses can compete with global platforms.

Shein and Temu do not have a direct presence everywhere in Africa. Their strongest presence so far is in countries such as South Africa and Nigeria, and to some extent in Ghana and Kenya. But their products also reach customers indirectly in many other African countries.

So-called freight forwarders play an important role. They provide customers with a delivery address in a country where Shein or Temu delivers directly. The package is initially sent there and then forwarded to Africa.

This is how it works for Mariama Sow from Guinea-Bissau. She orders shoes, accessories and human hair for hair salons from Shein. She uses a freight forwarder in Portugal, which then forwards her orders to Guinea-Bissau.

"Underwear, shoes, clothes and school supplies, and above all the human hair, live up to their promise," Sow said.

At the same time, she says she has heard complaints from other customers about poor quality or incorrect sizes. Another problem, she says, is that local retailers are losing customers, particularly younger ones.

The tax dispute shows the political dimension

For governments, the issue is also about taxes and fair competition. South Africa has therefore tightened the rules governing small online imports. The government wanted to prevent international platforms from enjoying a tax advantage over local retailers.

For a local retailer who pays rent, staff costs and taxes, such differences can be significant.

The conflict is therefore not simply a matter of China versus Africa. It is about whether local businesses can compete under comparable conditions.

Akpeloo from AGI Accra is also calling for better controls.

"We need stronger action against smuggling, better enforcement of customs and quality standards," he told DW. Goods entering the market without the required duties and taxes can put additional pressure on local businesses.

Beyond cheap imports

Despite all the criticism, it would be too simplistic to portray the platforms solely as a threat.The key question is where the economic value is created.

A delivery driver earns money from an order placed in China. A textile worker, by contrast, can support an entire local value chain — from the fabric producer to the sewing factory and retailer.

For African governments, the challenge will therefore be to provide access to affordable products and digital commerce without weakening their own industrial base.

The real competition is no longer just between Shein, Temu and local retailers. It is also over the shopping habits of a young generation — and over whether Africa will remain primarily a consumer in the new digital economy or become a producer itself.

Edited by: Keith Walker