Temu & Shein's fast fashion success could cost SA 34,000 jobs by 2030 - study

While the cheaper clothing delivered by offshore e-commerce retailers like China's Shein and Temu might be a boon for cash-strapped South Africans, their continuing success comes at a cost to our economy.

If Shein and Temu continue taking market share at their current rates, South Africa could lose over 34,000 clothing retail and manufacturing  jobs by 2030, according to a new report.

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The Offshore E-commerce Disruption in South Africa study was commissioned by the Localisation Support Fund (LSF).

Eustace Mashimbye says Proudly South African urged the non-profit company to go ahead with the study to determine just how this development is impacting the local clothing industry.

"So the numbers are out - 34,000 jobs potentially lost by 2030 if these e-retailers keep going at this rate. Currently they've already taken over about a third of the total online sales from South Africa and they've done this in about five years only, while it took the other players about 13 years to get to where these two players are just in the last four years."

Eustace Mashimbye, CEO -  Proudly South African

"Clearly their aggression is paying dividends for them, but not doing anything for our economy."

Eustace Mashimbye, CEO -  Proudly South African

Mashimbye does also highlight that the Retail–Clothing Textile Footwear Leather Master Plan is bearing fruit.

"The special partners who came up with this are government, organised labour as well as retailers... and it has really helped because those targets it contains are what everybody's working towards in terms of shifting what was previously ordered especially from the East, to ordering it here."

Eustace Mashimbye, CEO -  Proudly South African

"This helps to ensure those factories that have the capacity that is required are given a chance to stay alive, because once we lose that manufacturing it's gone and most times we can't get it back."

Eustace Mashimbye, CEO -  Proudly South African

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