Whilst this does not directly affect Berries, trends that show the uptake in shopping at cheap online retailers show ways in which consumers are looking to save money and stretch their budget further. This trend is like the behaviour of shoppers in stores moving towards private labels or shopping at multiple retailers to get more for their dollars.
The remarkable ascent of Temu and Shein, Chinese-owned online-only retail platforms, has revolutionised the landscape of ultra-cheap, disposable fashion and goods. If you visit any social media platform over the last 6 months you would have likely been bombarded with ads trying to sell you products from either one of these sites.
Shein’s meteoric rise in Australia, with nearly 800,000 monthly shoppers in clothing and accessories, is on the verge of hitting a billion dollars in annual sales—an expansion into new categories beyond apparel bolsters this surge. Temu, leveraging low prices, free delivery, and hefty marketing investments, has quickly garnered a vast Australian customer base, boasting 1.26 million monthly shoppers and anticipating $1.3 billion in annual sales.
These platforms attract a diverse demographic, particularly appealing to young parents, larger households, and budget-conscious consumers. Interestingly, Temu also sees significant patronage from retired Australians, drawn by the promise of stretching their limited finances further. While Temu’s clientele includes a 30% male shopper base, Shein predominantly appeals to women, accounting for the bulk of its customers.
The impact of Temu and Shein extends beyond traditional discount retailers, posing a challenge to Australian department stores like David Jones and Myer. These stores witness their customers increasingly diverting spending towards Temu and Shein in search of greater value, signalling a shift in consumer behaviour and the growing appeal of ultra-cheap online retail.
*Shein projected annual sales, based on the first 6 months of data captured from July-Dec 2023 *Temu projected annual sales, based on the first three months of data captured from Oct-Dec 2023 Source: Roy Morgan Single Source (Australia) Base: Australians 14+, Shein n=32,669 (July-Dec 2023), Temu n=16,364 (Oct-Dec 2023).
Source : https://www.roymorgan.com
