{"id":41519,"date":"2026-11-13T11:05:15","date_gmt":"2026-11-13T11:05:15","guid":{"rendered":"https:\/\/wedodis.co.za\/news\/?p=41519"},"modified":"2026-11-13T11:05:15","modified_gmt":"2026-11-13T11:05:15","slug":"banished-success-why-local-workers-see-global-giants-as-a-threat-in-south-africa","status":"publish","type":"post","link":"https:\/\/wedodis.co.za\/news\/banished-success-why-local-workers-see-global-giants-as-a-threat-in-south-africa\/","title":{"rendered":"Banished Success: Why Local Workers See Global Giants as a Threat in South Africa"},"content":{"rendered":"
\"BanishedThe swift rise of Shein and Temu has prompted organized labor to demand a ban on these platforms within South Africa.<\/p>\n

Unions contend that the Chinese online retailers endanger jobs, competitiveness, and the future of the domestic clothing sector.<\/p>\n

These platforms have drawn millions of consumers due to their low prices, wide selection of products, and user-friendly shopping apps.<\/p>\n

Nonetheless, their increasing market share has sparked worries among local manufacturers and retailers who claim that competing with these global platforms is becoming increasingly difficult.<\/p>\n

The Congress of South African Trade Unions (COSATU) has formally endorsed a campaign for a complete government ban on the two companies.<\/p>\n

This initiative follows a similar call from its affiliate, the Southern African Clothing and Textile Workers\u2019 Union (SACTWU).<\/p>\n

The union argues that the platforms undermine local industry and employment by offering imports at prices that local businesses struggle to match.<\/p>\n

COSATU estimates that without intervention, the growth of Shein and Temu could jeopardize around 34,000 jobs in South Africa’s clothing, textile, leather, and footwear sectors by 2030.<\/p>\n

A report from the Localisation Support Fund indicated that these platforms have generated close to R7.3 billion in sales within South Africa.<\/p>\n

Shein began its operations in South Africa in 2020, while Temu made its debut in January 2024. Both have capitalized on the demand for reasonably priced clothing and household items during the ongoing cost-of-living crisis.<\/p>\n

The report also noted that the combined sales of Shein and Temu have given them a significant position in the local clothing market, outpacing international brands such as Cotton On, H&M, and Zara.<\/p>\n

Labor unions have pointed out that the advantages these platforms enjoy stem from cheaper foreign production, low shipping costs, and differing tax and regulatory environments for international versus local businesses.<\/p>\n

However, technology analyst Siphumelele Zondi has criticized the idea of enforcing a ban, emphasizing that South Africa cannot halt the transition to online shopping merely because foreign competitors are gaining market share.<\/p>\n

\u201cCOSATU are smoking their socks if they think it would be constitutional to ban e-commerce or imports like Shein and Temu,\u201d he said during an interview with The Money Show.<\/p>\n

Zondi expressed skepticism regarding the projected job losses but acknowledged that the rise of international online retailers may pressure traditional retail and local manufacturing.<\/p>\n

He urged local businesses to adapt to evolving consumer preferences rather than expecting the government to eliminate foreign competition.<\/p>\n

\u201cYou can\u2019t turn the clock back on this sort of thing. What you have to do is compete,\u201d he stated.<\/p>\n

Zondi highlighted the response of established South African retailers that have embraced digital platforms to engage with customers.<\/p>\n

The Foschini Group operates Bash, while Shoprite and Checkers have broadened their online offerings through enhanced digital services.<\/p>\n

He also pointed out the emerging opportunities brought about by the growth of e-commerce, particularly in delivery services, last-mile logistics, and technology advancements.<\/p>\n

While employment in traditional retail may face challenges, online shopping has simultaneously generated demand for delivery workers, web developers, and those managing online transactions.<\/p>\n

The expansion of online marketplaces has also created avenues for individuals to earn income by selling second-hand items through platforms like Yaga.<\/p>\n

Nonetheless, Zondi cautioned consumers about the dangers posed by fraudulent online shops, which can be designed to deceive buyers and steal their personal information. He advised shoppers to confirm the credibility of unfamiliar retailers before making purchases.<\/p>\n<\/div>\n