"The rapid rise of Chinese ecommerce platforms like Temu and Shein presents a formidable challenge for local UK retailers"

When it comes to online shopping, price is increasingly trumping quality with six in ten bargain-hunting Brits and just over eight in 10 Gen Zedders buying goods from Chinese shopping sites such as Temu and Shein in the past year, according to new research that will worry UK retailers.

The research, by e-commerce marketing platform Omnisend, revealed that 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. Almost half of Temu shoppers (49%) put price as the biggest factor for making a purchase, with just 17% valuing quality.

Chinese marketplaces are rapidly gaining traction in the UK and challenging both traditional retail giants and the UK's millions of small independent retailers. Greg Zakowicz, senior e-commerce expert at Omnisend, warned: “The rapid rise of Chinese ecommerce platforms like Temu and Shein presents a formidable challenge for local UK retailers. Millions of Brits turned to them during the cost-of-living crisis and that appeal seems to have endured. Consumers are lured in by products priced in pennies, as well as free gifts and new customer offers. The ability of these platforms 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."

Racheal Straughan, director of the Newcastle-upon-Tyne-based e-commerce marketplace for small retailers and crafters, Mayfli, says the arrival of Temu was felt immediately by the businesses on her platform: “I work with businesses daily, and many have reported a decline in sales that coincided with Temu's entry into the UK market 18 months ago. I've been raising concerns for the past year, engaging with the Small Business Commissioner, local authorities, the Federation of Small Businesses, and even attempting a petition with the UK government. The decline of our high streets began with Amazon, and now small online sellers are facing significant losses due to Chinese marketplaces like Temu, especially amid the current economic crisis. Despite efforts to revitalise our high streets, I'm concerned they won't survive if platforms like Temu and Shein continue to operate in the UK. Even Amazon is piloting a project in the USA to compete with Temu, underscoring the seriousness of the situation.”

Josh Holmes, Senior Consultant at Retail Economics, says that while the emergence of Chinese marketplaces is another clear and present danger for smaller retailers, who need greater margins to survive, the game's not necessarily up: “Chinese marketplaces like Temu are making waves by attracting budget-conscious shoppers with ultra-low prices and on-trend products. While smaller retailers can't compete with Temu on price or speed, that doesn't mean they're out of the game. They should focus on what sets them apart—offering exceptional customer service, curating unique, high-quality products, and building genuine relationships. It's not all about low prices; there’s a chance to double down on quality, curation and a personal touch — areas where big players like Temu fall short.”

Holmes continued: “Smaller retailers, especially those on the high street, can provide in-store experiences that many shoppers still value. By emphasising local expertise and ethical practices, they can attract consumers who value more than just the lowest price. While Temu's scale and reach pose challenges, smaller retailers can build loyalty through trust and authenticity, giving shoppers a reason to choose them over impersonal, mass-market platforms." Zakowicz agreed: “To remain competitive, smaller businesses should focus on providing exceptional customer experiences, leveraging marketing tools, and differentiating their offerings."

But for some potential customers, differentiation may not be enough as the cost savings can be too hard to resist. Rachael Dines, Chair of Friends of English Martyrs Primary School Charity, says that: “Temu has been an excellent source of products for our school fundraising, in the form of prizes for big events. Amazon and local retailers unfortunately just can't complete on those prices and every penny counts for a charity."

Debbie Porter, Managing Director at Destination Digital Marketing, shared much the same view: “Temu and Shein are loved by younger people in the same way Primark has always been loved by people who are cost-conscious. They don’t have much cash to spare and still want to buy into fast fashion, so environmental concerns, product safety and ethics go out of the window.”

Natalie Ormond, owner at Leeds-based sustainable lifestyle store Smallkind, described the arrival of Temu and Shein as “disheartening”: "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."