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Brits switch to Chinese online marketplaces like Temu

ended 03. September 2024

According to new research by e-commerce marketing platform Omnisend, Chinese marketplaces are rapidly gaining traction in the UK and challenging traditional retail giants, with more Brits making purchases from at least one in the past year. 

We'd like to hear your views, including:

  • How big a threat to smaller retailers are Chinese marketplaces like Temu?
  • How can smaller retailers remain competitive against the rise of the like of Temu? (Eg. focus on providing exceptional customer experiences, differentiating their offerings)The study revealed that:

The research by Omnisend found that:

  • Six in ten Brits (60%) have switched to shopping at Chinese shopping sites in the past year despite alarming trust issues, 
  • 43% of Brits who shop online have bought something from Temu, compared with 42% from Shein, 25% from TikTok Shop and 22% from AliExpress - all founded in China.
  • Gen Z bargain-hunters are the biggest fans of Chinese marketplaces with 82% of young people shopping at one in the past year.
  • Half of Temu shoppers (49%) put price as the biggest factor for making a purchase, with only 17% valuing quality.
  • Women have a higher opinion of every Chinese shopping giant than men do, with Shein topping favorability thanks to its wide clothing selection.

Greg Zakowicz, senior e-commerce expert at Omnisend, comments: “The rise of Chinese marketplaces presents a formidable challenge for local businesses with millions of Brits turning to them during the cost-of-living crisis.

“Consumers are lured in by products priced in pennies, as well as free gifts and new customer offers.

“Their ability to compete with other formidable shopping giants like Amazon and eBay when it comes to price and product variety is the key factor, with shoppers willing to put quality to one side. 

“To remain competitive, smaller businesses should focus on providing exceptional customer experiences, leveraging marketing tools, and differentiating their offerings.

“Both large and small high street shops have faced many challenges in the past decade, but keeping prices fair and emphasising the importance of substance over style can help them remain buoyant.”

 

 

 

2 responses from the Newspage community

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Racheal StraughanVerified
Founder at Mayfli
I work with businesses daily, and many have reported a decline in sales that began around the time Temu entered the UK market 18 months ago. I've been sounding the alarm for the past year, engaging with the Small Business Commissioner, local authorities, and the FSB, and even attempting a petition with the UK government.

The decline of our high streets started with Amazon, and now small online sellers are seeing significant drops due to Chinese marketplaces like Temu, compounded by the current economic crisis. Despite efforts to revitalize our high streets, I fear they won’t survive if platforms like Temu and Shein continue operating in the UK. Even Amazon is piloting a project in the USA to compete with Temu, which shows how serious the situation is. However, high street shops that have been community staples and offer workshops and experiences seem to be holding on.

The government must act now to protect consumers, wholesalers, and sellers with stricter regulations.
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Natalie Ormond0
Owner at Smallkind
As a small, independent business focused on ethical and eco-friendly products, I've faced significant challenges in recent years. Brexit, COVID, and the rising cost of living have made it incredibly difficult to compete on price with budget high street stores.

It's disheartening to see companies like Temu and Shein, with questionable ethics and environmental records, outselling even traditional high street stores. While I prioritise safety and sustainability in my products, many consumers seem to look for low price above all else.

I founded Smallkind to offer families a better alternative to the low-quality, unethical products often found on the high street. I hope to make ethical and eco-friendly choices more accessible and mainstream but at the moment it feels like shouting in the wind.