Shein and Temu taking over our cupboards, but at what cost?

CapeTalk's Lester Kiewit speaks to Michael Lawrence, Executive Director of the National Clothing Retail Federation.

Listen below:

"I just love your shoes/bag/sunglasses/jersey," (fill in the blank as appropriate).

"Thanks... it's from Temu/Shein!"

Shoppers in Mzansi have fallen hook, link and sinker for the Chinese-owned online marketplace brands.

Shein and Temu are the two major e-commerce players offering a wide range of goods - from furniture and fashion, to toys and homeware. Shein has been the world's largest fashion retailer since 2022.

Both offer such heavily discounted goods that, for some local customers, even the import tax makes buying from the site worth it.

But what impact are these sites having on local retailers?

"We as retail are just looking for a level playing field."

- Michael Lawrence, Executive Director - National Clothing Retail Federation

According to the report, if Shein and Temu continue growing at their current rates, South Africa could lose over 34,000 local jobs.

They made R7.3 billion in sales in 2024, accounting for more than a third of all online clothing sales in South Africa.

Despite Shein and Temu denying allegations of anti-competitive practices, some countries have put in strict import rules in order to combat the potentially devastating impact of 'fast fashion'.

"The French example is quite interesting, being able to impose a specific duty for investigating each small parcel and ensuring it satisfies import requirements."

- Michael Lawrence, Executive Director - National Clothing Retail Federation

"We've seen India impose limitations on advertising."

- Michael Lawrence, Executive Director - National Clothing Retail Federation

RELATED: What SA's tax crackdown on Shein and Temu means for the consumer

Lawrence says while local retailers don't want to be perceived as being anti-competitive, government must chose 'where its wins are' in terms of the economy.

"And where it wants to be seeing development, growth in jobs... and it's got to provide the necessary responses to that."

- Michael Lawrence, Executive Director - National Clothing Retail Federation

"We think we've got a commercial response, we think government has to provide an architecture trade response."

- Michael Lawrence, Executive Director - National Clothing Retail Federation

RELATED: 'Shein and Temu are strangling South African producers and e-tailers'

Last year, SARS attempted to close a tax loophole that allowed retailers like Shein and Temu to benefit.

From September it introduced VAT in addition to the 20% flat rate customs duty as an immediate interim measure.

Are you a fan of e-retailers like Shein and Temu? Scroll up to audio player to listen to the conversation.