Gen Z Aussies fuelling rise in Chinese fashion company Shein: Report
Chinese fashion phenomenon Shein continues to rise in popularity across Australian online marketplaces and Gen Z shoppers are fuelling the boom.
Some 26 per cent of online shoppers bought products from the brand in the past 12 months, a new report from ecommerce service provider Pattern shows, and the figure is expected to lift to 28 per cent in 2025.
'The platform attracts two million Australian shoppers aged 14 and over, with 76 per cent being repeat customers and 42 per cent making purchases four or more times a year,' the report, which drills into consumer behaviour across major online marketplaces, states.
'The majority of Shein's customers are female (78 per cent) and under 35, aligning with its core focus on women's clothing.'
The report suggests the fast-fashion company's aggressive pricing strategy to attract cost-conscious shoppers was paying off.
'Despite concerns over trust, Shein continues to attract shoppers seeking low prices and a wide assortment with 70 per cent of Australians regularly using Chinese marketplaces due to value,' the report notes.
'With plans to file for a London initial public offering at a $$100bn valuation, Shein's aggressive growth and diversification strategies position it as a significant player in the Australian retail landscape for the future.'
Roy Morgan estimates Shein attracted $1.1bn in annual sales for the year ending June 2024.
The company is also moving to lift its 'brand engagement' by increasing physical activations such as showroom experiences.
But while Shein is flying, Chinese online retail platform Temu could be slipping, the report said.
Some 46 per cent of online shoppers bought products from Temu in the past 12 months, but the figure is expect to fall to 43 per cent in 2025.
'Shopper intentions for 2025 indicate that the rapid growth of Chinese marketplaces in Australia may be on the decline,' the report states.
'Temu is expected to see a reduction in shoppers, with 43 per cent of people planning to shop on the platform compared to 46 per cent in 2024.
'This trend could be attributed to a wave of shoppers who trialled the Chinese marketplaces in 2024 but experienced unsatisfactory shopping experiences.'
US giant Amazon continues to dominate online marketplaces in Australia, though it is moving to fend off its Chinese challengers.
Some 58 per cent of shoppers purchased products from the platform in the past 12 months and that number is expected to hit 63 per cent in 2025.
'To counter emerging competitors like Temu and Shein, Amazon has launched 'Haul', a low-cost storefront with price caps, aiming to match the appeal of discount platforms,' the report states.
'Despite perceptions of higher prices compared to Chinese marketplaces, Amazon maintains a strong reputation for fast delivery and quality, with 63 per cent of shoppers trusting the platform.'
The value of Australia's ecommerce market is expected to reach $59bn in 2025 and then grow to $93bn by 2029.
The data for the report comes from a poll of 1000 Australians, aged 14 and above.
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