"Shein — loved by shoppers, hated by rivals — is under investigation in South Africa"

... On Monday, March 13, South Africa’s Department of Trade, Industry and Competition announced an investigation into Chinese online fast-fashion retailer Shein following concerns over its import practices.

The investigation was in response to calls from local labor groups and competitors alleging that Shein’s business practices allowed it to undercut the market. Two trade unions — the National Clothing Retail Federation of South Africa and the Southern African Clothing and Textile Workers Union — had filed formal complaints, in which both alleged that the company failed to pay import duties on orders made by its customers in the country. But thanks to its low prices, Shein remains popular with many South African customers...

An official with one of the trade unions claimed Shein pays as little as 10%–20% on import tariffs compared to standard tariff charges of 40%–45%. In the complaint, the unions allege that the company deliberately sends goods to its customers in small packages to accrue less import duty.

Bongani Lukhele, director of media relations for the Department of Trade, Industry and Competition, confirmed to Rest of World that an investigation against Shein was underway, adding that he could not share more information at this stage.

According to Michael Lawrence, executive director of the National Clothing Retail Federation, an organization representing the interests of retailers in South Africa, several sellers in the local textile industry had questioned systems that they claim enabled Shein to sidestep import taxes...

Ali Baba, a Shein clothing distributor in Cape Town, told Rest of World he doesn’t believe the investigation will impact Shein’s presence in South Africa. “The brand has already sold itself such that whatever the outcome of investigations by the [South African] government, Shein can still survive because it has made a name for itself”...