As the festive season approaches, chinese company giants such as Temu and Shein are reshaping Christmas shopping habits in Ireland and across Europe, posing a major threat to local retailers.
Speaking on current trends, Miriam Simon, consumer advisor and business strategist, joined The Anton Savage Show to touch on this years Christmas shopping patterns, with two very different types of consumers emerging.
“There’s the customer who is really counting the pennies and started purchasing as early as August," she said.
"And now there’s also the ‘do it for me’ customer, who is happy to spend money but is actually making it harder for retailers.”
The rapid rise of Temu and Shein is at the centre of this retail disruption. Their ultra-cheap products and aggressive marketing strategies are drawing in millions of European customers.
Temu had 115.7 million European shoppers in just the first six months of this year, more than 25% of the EU population.
Shein now records 145 million monthly users globally.
Alamy Stock Photo“It’s taking a lot of competitors out,” Simon warned, adding that the shift to European markets is a major concern.
“I would be really concerned that Shein and Temu have moved their focus from the States into Europe."
"Unfortunately, it’s a perfect storm, the cost of doing business in Ireland has become very prohibitive,” she added.
Impact on Christmas Trading
This surge in fast-fashion and cheap electronics is directly affecting Irish Christmas trading. Electronics and apparel are the biggest sellers this year, according to Simon, both categories in which Shein and Temu dominate.
The consumer advisor pointed out that shopping has also become more confusing for consumers.
“We only had Black Friday for the first time in 2014. But now it’s really Black November."
Consumer habits
Simon believes that artificial intelligence will shape how customers shop online, with more strategic price comparisons and personalised recommendations.
“In this new AI era, the customer online is going to be a lot more strategic, where they can get the best price and best recommendation.”
Simon said Irish retailers must differentiate themselves through personal service, something large online platforms cannot replicate.
“The retailers that are doing well are working really hard, they’re showing things more personalised. It’s going to be the human touch, the extra touch. Those big businesses won’t do that.”
She believes a "white glove service" approach, offering individualised customer support could be the key to surviving the pressure from global competition.
Written by Annemarie Roberts
