Brits switch to Chinese online marketplaces like Temu poses threat to small retailers

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.”