Johannesburg — Rotondwa Mbadaliga is a self-professed"shopping addict." The 25-year-old South African fashion influencer says she is a huge fan of Chinese-linked e-commerce companies Shein and Temu because she can get the latest trends at the cheapest prices delivered straight to her door.
For women's clothing purchases online, Shein is the top retailer with a 35% market share, according to data from Marketing Research Foundation, a nonprofit South Africa-based marketing survey group.Mbadaliga acknowledges that quality can sometimes be an issue. Some South African companies and industry groups have lobbied the government to close an import tax loophole, a so-called de minimis rule, for small parcels of clothing. The loophole was introduced decades ago for items such as gifts before the advent of online shopping.
When South Africa's tax authorities implement the higher tax rate for imported clothing under 500 rand, those shippers will be paying the same rate of 45% plus a VAT as the bulk shipments incur. "This form of commerce extracts value from South African consumers without contributing to local communities, ultimately harming small businesses, local manufacturers and the limited job opportunities available," it continued.