STORY: Chinese e-commerce retail giant Shein has divided opinion in South Africa after opening its first physical store.
Not only has it lured in bargain-hunters, but it’s spurred a tax change after rivals said the competition was unfair.
Having opened in Johannesburg a month ago, it has attracted reams of customers, like Mi’chal Naidoo…
…who are eager for clothes and accessories which often cost less than $10.
“My first initial expectation from Shein was that it was not up to what my standard of good quality would be. So I think when I started noticing that it was like every other piece of clothing in my cupboard, I was like OK, maybe I should just rethink this and then give it a try.”
But prices of Shein’s online-only goods are expected to rise in South Africa.
That’s after the country’s tax authority increased levies to protect local retailers.
Since Monday (Sept 1), people importing low-value parcels have been required to pay value added tax (VAT) of 15%.
Shein’s critics said this move will help level the playing field.
And while some shoppers are saying “why not” to Shein’s bargain offers…
…advocates for sustainable fashion, like writer Afika Jadezweni, encouraged shoppers to question such cheap prices.
“When things are produced locally, they cost more because people are trying to do right in terms of labor laws and to give people a decent quality of life, which is not so much the case with the suppliers who supply for the likes of Shein. There’s still a big conversation the about the ethics around exploitation, and the churning culture that’s happening there. As a consumer, you have to ask yourself, do I really need this sweater in three different colors?”
