Fast-fashion leader Shein, renowned for its $5 tops and $10 dresses, is set to launch a temporary store in Johannesburg, South Africa this August, as the online fashion retailer seeks to boost its brand visibility in the region. Founded in China, Shein and its competitor Temu have rapidly expanded globally following the surge in online shopping post-COVID. Both companies have faced allegations of exploiting tax exemptions by shipping small batches of Chinese-made goods to evade higher tariffs.
"Directly engaging with our end consumers is a pivotal aspect of Shein's strategy," the company stated in a recent email. "As a digital-first enterprise, Shein's highly successful pop-ups provide a platform for our customers to physically experience our products and connect with our local brand ambassadors." Shein plans to operate its pop-up from August 2-11, serving as a showroom for customers to try on fashionable apparel and lifestyle items, with the option to purchase online at reduced prices, according to a post on their South African Instagram account. The brand has enlisted local influencers to promote the store ahead of its opening.
Traditional and online fashion retailers in South Africa have called on regulators to enforce a 45% import duty on all clothing imports, regardless of cost, to create a fair market. Shein, which is eyeing a public listing in the UK, sources from a network of primarily Chinese suppliers who start with small orders and increase production based on demand. A Shein representative informed Reuters that the company is cooperating with South African authorities to maintain compliance with local regulations. "However, these tax adjustments are not essential to our business success or the competitive pricing we offer our customers. We manage to keep our prices low through our technology-driven, demand-based business model and adaptable supply chain," the spokesperson further explained.
