Local online shopping retailers are enraged over multinational e-commerce disruptors Shein and Temu, accusing them of anti-competitive practices, which they both deny.
, says it has been inundated with complaints from its members this year, against online retailers Shein and Temu , with claims of “unethical tactics”.around 250 000 South Africans shoppers who are attracted by its low-cost ‘fast fashion’, according to the Marketing All Product Survey.
“We have had a considerable number of complaints. These relate entirely to two global e-commerce companies – Shein and Temu,” says Alastair Tempest, EFSA CEO. “Temu’s effect has been even more immediate, with well-established e-shops informing us they have seen their first quarter sales dropping by at least 15% to 20%. Its prices are so low that the question arises: is this actually dumping of goods?”“There is a feeling that if these very low prices are allowed to continue, this will undermine South African production – potentially leading to local companies going out of business, and therefore to increased unemployment,” he adds.
“We can then pass on these significant cost advantages to our customers – this is Shein’s competitive advantage.” “Our objective is to democratise access to the global supply chain, ensuring equitable opportunities for all. The large volume of orders processed through Temu allows us to secure economies of scale, leading to more favourable freight and delivery terms, which in turn, lowers the costs for our customers. Manufacturers on our platform typically see higher profit margins than they would through traditional retail channels or when selling to wholesalers.
Shein Temu Pinduoduo Aliexpress Wish Alastair Tempest Southern African Clothing Textile Workers Union National Clothing Retail Federation Consumer Goods And Services Ombud
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