There is a price to pay for Shein and Temu’s mass accessibility.
Many South Africans can name at least 10 people who have purchased trendy clothes from Shein or Temu. They provide hundreds of new styles weekly, and produce affordable fashion worldwide. It is no surprise that they are so attractive to consumers. They are the giants of the fast fashion world.
Fast fashion is the excessive making, selling and buying of trendy clothes. This cheap retail competes with the constant movement of trend cycles. Brands like Shein and Temu produce an excessive amount of clothes daily. Their affordable clothing is made with cheap resources and cheap labour. These big companies have affected the local industry and the planet.
Shein and Temu: Labour and environmental concerns
There is a price to pay for this trendy fashion’s mass accessibility.
Shein’s recent labour controversy displays the dangers of fast fashion. Wired conducted an investigation, exposing the harsh working conditions Shein labourers endure. They found that employees worked 75-hour shifts, without appropriate rest time.
Evidence suggests that some workshops lack windows and emergency exits, failing to meet safety protocols. Employees were reportedly working without contracts or minimum wage requirements, enabling Shien to underpay them.
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Fast fashion greatly impacts the planet’s environment. Water pollution, greenhouse gas emissions, excessive waste, and the production of carbon dioxide (CO2) are all consequences of Shein and Temu’s business model.
The minimal production time these companies achieve means there is a high chance of environmental negligence. Temu annually produces approximately 92 million tons of waste and consumes nearly 79 trillion litres of water. This strains the planet’s natural resources.
Shein’s use of virgin polyester and oil expenditure produces CO2, similar to that 180 coal-fired power plants would create, according to Synthetics Anonymous 2.0. This amounts to 6.3 million tons of CO2 produced in a year.
Threat to South African businesses
The evolution of retail has left economic pressures on local retailers. Large global competitors pose threats to the South African industry.
“These two online retailers have a huge impact on local retail,” said Yda van Gass, Chief Executive at Ackermans.
Shein and Temu own almost a fifth of the global fast fashion industry.
“Some market researchers claiming that they own 7% of local market share,” said Van Gass. This poses a threat to homegrown and sustainable businesses.
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Van Grass said there is an expectation on South African retailers to source local products or from Southern African Development Community (SADC) countries for job creation. This initiative makes it difficult to compete with global contenders like Shein and Temu, who use far cheaper materials and labour.
“Their total business model is set up differently to traditional retail. They have no brick and mortar stores, but have a massive marketing budget to drive consumer consideration worldwide.”
Shein and Temu, however, could soon be a lot less cheap for South African customers. From 1 September, the interim tax will increase. VAT will be charged with 20% duty tax to the importers.
Van Gass said South African retailers are hoping the tax increase will benefit local sales.
