The rise of Temu, the Chinese e-commerce giant, is reshaping retail landscapes across the globe, and New Zealand is no exception. What began as a curiosity for bargain hunters has quickly evolved into a significant force, prompting both consumer enthusiasm and concern among established retailers. While shoppers like Crystal, a North Canterbury resident, describe themselves as near-brand ambassadors for the platform – sourcing “just about everything” from its vast catalog – traditional businesses are grappling with the implications of this new competitive reality.
Temu’s appeal is straightforward: aggressively low prices and an almost limitless selection. From projectors and tents to nail polish and garden supplies, the platform offers a dizzying array of goods, often at prices that seem too good to be true. The company’s marketing, coupled with a gamified shopping experience – including “Shake & Win” promotions and incentives for referrals – has proven remarkably effective in attracting a diverse customer base.
However, the platform’s success isn’t solely driven by price. As Christchurch-based professional Freya explains, Temu fills a unique niche. While she still frequents stores like The Warehouse and Kmart for immediate needs, she appreciates the sheer variety offered online. “It’s addictive and distracting, harder to stay on task than in any physical shop,” she says, describing the experience of scrolling through the platform’s endless offerings. Her home, she notes, is now filled with “silly, quirky” items sourced from Temu – turtle-shaped incense holders, plant supports, and egg containers among them.
But this surge in online spending, particularly towards overseas retailers like Temu, is causing ripples throughout the New Zealand retail sector. Despite talk of economic recovery, domestic retail spending remains nearly flat, according to Retail NZ spokesperson Carolyn Young. “It’s a two-speed economy – people are spending overseas, not domestically,” she observes. December 2025 retail spending was down 0.1 percent, a trend that highlights a shift in consumer behavior.
The impact is already visible in the struggles of established businesses. The Warehouse Group recently announced a significant restructuring, cutting 270 head office roles, while 61 shops across the country closed their doors in the first two weeks of January . These closures, while attributable to a variety of factors, underscore the challenges facing brick-and-mortar retailers in the face of online competition.
The Temu customer base is surprisingly broad. While often associated with younger demographics, data suggests a significant portion – around 65 percent in Australia – is male, drawn to the platform’s offerings of electronics, tools, and car accessories. Gen Z and Millennials are also heavy users, influenced by TikTok trends and the platform’s reward system. Crucially, Temu is also attracting older and lower-income shoppers seeking affordable essentials like homewares and personal care products. It’s becoming, as one observer put it, “the default marketplace for anyone trying to stretch a dollar.”
The platform’s growth is fueled, in part, by its aggressive marketing tactics. Freya describes being “completely sucked in” by Temu’s referral program, which incentivized users to share links with friends in exchange for discounts and free items. The constant stream of online advertisements further reinforces the platform’s presence in consumers’ minds.
However, the convenience and affordability come with caveats. While Temu offers a generous return policy, Freya estimates that roughly one in ten products she receives is defective. More broadly, concerns linger regarding the ethical implications of ultra-fast fashion and the potential for exploitation within Temu’s supply chain.
Carolyn Young emphasizes that New Zealand businesses are held to higher standards, adhering to health and safety regulations and the Consumer Guarantees Act. Products sourced directly from overseas suppliers, like those on Temu, are not subject to the same scrutiny. This disparity is further compounded by the impending “modern day slavery” bill, which will require larger New Zealand companies to conduct due diligence on their supply chains – a cost that Temu, operating outside of these regulations, won’t bear.
The long-term impact of Temu’s presence in New Zealand remains to be seen. For Freya, the experience is a mixed bag. While she’s transformed her living space with affordable finds, she’s also questioning whether the constant consumption is truly beneficial. “I’m on the fence about if Temu has been good or bad for me,” she admits. As Temu continues to gain traction, New Zealand retailers and consumers alike will need to navigate the complex landscape of affordability, ethics, and the evolving future of shopping.
