Major reason Aussies will shy away from Temu and Shein
International retailers Temu and Shein have risen rapidly in Australia, but that could be short lived. Here’s why.
Ultra-cheap retailers Temu and Shein’s growing markets in Australia are tipped to stall in 2025, as Aussies’ trust in the brand falls.
Despite the two international retailers’ rapid rise, Temu and Shein risk losing shoppers in 2025, new research by Pattern reveals.
Only 12 per cent of customers trust Temu for its product quality, leading to a 7 per cent predicted a drop in shoppers in 2025.
Online fashion retailer Shein faces a similar challenge with trust levels at just 11 per cent.
Pattern Australia managing director Merline McGregor said Temu and Shein’s aggressive pricing and large marketing campaigns drew Australian shoppers in over the past 18 months, but customers were doubting the product quality.
“Early adopters have found these marketplaces unreliable. Although they may still expand in the future, Temu and Shein face a significant challenge in legitimising themselves within the Australian market and delivering on the customer experience,” Ms McGregor said.
She said alarmingly for the Chinese marketplaces, only 43 per cent of shoppers would consider buying from Temu in 2025, and even this could hinge on improvements in quality and delivery.
Temu dominated the recent Similarweb 2025 Digital 100 Australia report, being named the fastest growing website in 2024.
According to the figures, there was a 72 per cent jump in unique visitors to the site.
Temu was also the most downloaded iPhone app in Australia last year, according to Apple. Globally, it holds the top spot in 25 markets across more than 30 countries and regions with official Apple rankings.
Ms McGregor said while the two Chinese manufacturers faced challenges in 2025, Amazon continued to carve out a path in the Australian marketplace.
The stats show 1.1 million new Australians were brought to the platform in 2024 for a total of 7.9 million shoppers.
The outlook for Amazon is strong with 63 per cent of Australians planning to shop on the platform in 2025.
“Amazon’s focus on fast delivery, quality products, and a seamless shopping experience sets it apart,” said McGregor.
“While Chinese platforms have disrupted the market, Amazon’s trusted reputation and ability to adapt – such as the launch of its low-cost ‘Haul’ storefront – ensure it stays ahead.”
The report comes just weeks after it was revealed the Chinese retailers had claimed their biggest victim in the Wesfarmers owned and operated marketplace Catch.
In FY24, Catch reported a $96m loss, including $23m restructuring costs and a non-cash impairment to its brand value.
Gross transaction value declined by 28.5 per cent to $524m, playing a role in the company shutting down.
Wesfarmers managing director Rob Scott said the business was unable to compete with the intense competition from overseas brands.
“The recent increase in competitive intensity in the Australian e-commerce sector has affected Catch’s financial performance and growth prospects,” he said in a statement to the ASX.
Originally published as Major reason Aussies will shy away from Temu and Shein
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