Online retail giants Amazon, Temu, and Shein have made remarkable strides in capturing the hearts—and wallets—of Australian consumers, according to fresh insights from Roy Morgan. As traditional retail players struggle to maintain their foothold, these digital marketplaces are flourishing, shaking up the industry in ways we never expected.
Leading the charge is Amazon, boasting a staggering 8.8 million Australian shoppers making purchases at least once a year. This figure marks an impressive rise of 900,000 customers compared to the previous year, translating into an 11% growth rate. It’s clear that the online retail behemoth has solidified its presence in the Australian market.
Meanwhile, Temu has emerged as a formidable contender, attracting 4.7 million shoppers—an increase of 900,000 or 24% growth in just one year. Shein isn’t far behind, pulling in 2.6 million buyers, up by 600,000, which equates to a 27% rise in its customer base. Combine this with Temu and Shein’s growth, and you’ve got a retail revolution that’s generating billions in additional sales.
The impact of this growth is nothing short of staggering. Together, Temu and Shein have added an impressive $1.3 billion to their collective sales over the past year. Temu’s sales are soaring, now hitting approximately $2.6 billion annually in Australia, a substantial increase from $1.6 billion just a year prior. Shein, with its trend-driven appeal, has also seen its sales swell to $1.3 billion, climbing from $1 billion.
In stark contrast, several well-established retailers have faced steep declines in customer numbers. Companies like eBay, Kogan, The Reject Shop, and Best & Less are struggling to maintain their market presence. It’s been a tough year for fashion retailers as well, with names such as Millers, Rivers, Noni B, Katies, Autograph, Crossroads, Rockmans, and Wittner exiting the market entirely.
Catherine Jolley, Roy Morgan’s head of retail and consumer products, notes that this swift transformation is reshaping the industry. “As discount platforms reset consumer expectations, established retailers, especially those that have relied on a low-cost position, must grapple with their standing in this new retail order,” she explains. It’s a tough lesson for traditional players, who might have once thought they were invincible.
As this saga unfolds, it’s evident that the retail landscape in Australia is not just changing; it’s being revolutionized. So, watch out – the only constant in this digital age seems to be relentless growth and unexpected outcomes in the online space.
What recent figures highlight Amazon’s growth in Australia?
Amazon now boasts 8.8 million Australians shopping on its platform at least once a year, reflecting an 11% increase from the previous year.
How have Temu and Shein performed over the past year?
Temu’s customer base grew by 900,000 to reach 4.7 million, while Shein increased by 600,000 to 2.6 million, showcasing growth rates of 24% and 27%, respectively.
What challenges are traditional retailers facing?
Many established retailers, including eBay and Kogan, are seeing significant declines in their customer bases, with several fashion brands exiting the market entirely.
