As competition from ultra-cheap eCommerce players continues to intensify, consumers want the playing field to be levelled up, showing their support for home-grown retailers, the latest research from the Retail Technology Show (RTS) reveals.
The popularity of ultra-cheap online platforms, such as Temu and SHEIN, continues to win favour with price-conscious shoppers; last year, almost half (45 per cent) made purchases on Temu and SHEIN. Temu grew its European unique users to 115.7million each month in the first half of 2025, while SHEIN said UK sales had increased by a third to over £2billion, overtaking UK rival Boohoo and closing in on ASOS.
However, there are signs that Temu and SHEIN’s explosive growth may be starting to plateau amid market saturation, tightening regulation and ongoing questions into the sustainability of their trading models.
Original research of over 1,000 UK shoppers by RTS revealed that over half (54 per cent) believe the Government should bring in changes to the de minimis threshold to stop ultra-cheap eCommerce products flooding the UK market.
This rises to over two thirds (68 per cent) of Gen Z – the very audience that index highest for Temu and SHEIN purchases. Eight in ten (82 per cent) of Gen Z consumers in the UK shop on Chinese marketplaces, while 41 per cent make at least one purchase on SHEIN a month – more than twice that of older generations (16 per cent).
“There’s no denying that the lure of ultra-low-priced goods will appeal to squeezed consumers as downward pressure on household budgets continues to suppress spending. But while consumers want access to competitively priced goods, they also want to support home-grown retail brands,” said Matt Bradley, Founder & Event Director of RTS. “Consumers are increasingly calling for the playing field to be levelled up to ensure the ongoing health of the retail sector and the High Street in the long-term.”
Last year, tariff changes and the abolishment of the de minimis rule in the U.S., which previously exempted low-value parcels from fees when entering the North American market, saw growth among Temu and SHEIN significantly slow. Between March and May 2025, Temu’s daily active users in the U.S. dropped by -52 per cent, while SHEIN’s fell by -25 per cent.
It was widely expected that the UK would follow the lead of the U.S. in scrapping the de minimis rule in last year’s Autumn Budget, amid a broader international shift towards tightening low-value import regulations. However, the rule – which exempts parcels worth under £135 from import duties – will now remain in place until March 2029, despite pressure from British retailers, including Primark, Currys and Next, and lobbying from the British Retail Consortium (BRC) for its abolition.
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