Source : Perth Now news
Australian mogul Gerry Harvey wants a government inquiry into Chinese ultra-cheap retailers Shein and Temu, calling them “pariahs” that don’t pay tax.
Shein and Temu first entered the Australian market in 2022 and 2023 respectively and have intensified local competition with their heavily discounted products.
Mr Harvey’s call for an inquiry comes amid pressure on local businesses already facing off the increasingly prominent US giant retail Amazon, which reported a record $3bn in sales in 2023.
Asked whether he believed online marketplaces like Amazon and Temu were killing off local business, the Harvey Norman chair said “yes, yes, and yes”.
“ (Shein and Temu) are a … pariah, it’s a very difficult situation for Australian retailers to combat,” he told The West Australian paper on Thursday.
“They never pay any tax here, they don’t employ anyone.
“There should be a government inquiry into it as to what ramifications are there and whether they should or shouldn’t do something about it.
“It’s a real worry, do you let it just go or not, I think it’s worth an investigation.”
Temu was founded by Colin Huang, China’s second richest man, in 2022, and has steadily increased in prominence in the United States, Australia, and Europe.
In a hilarious online shopping mishap, a woman ordered what she thought was a quirky croissant-shaped lamp from Temu, only to receive an actual croissant instead!
In recent months, the company has been beset by multiple stories making headlines about allege safety issues with some of its products sold in Australia.
The online marketplace was forced to recall a jumper earlier this year after an eight-year-old Queensland girl suffered severe burns to her face and body.
At the time, Temu said it had been “in communications” with both the family and the merchant involved in this incident.
The retailer has also since pledged to work with the Australian consumer watchdog to commit to a host of tighter product safety rules and responses.
Other major online retailers such as Amazon, AliExpress, eBay Australian, and MyDeal.com.au have made similar pledges in the past.
Flagging potential safety concerns, Mr Harvey said consumers could have “a lot more comfort” buying from trusted brands despite it being slightly more expensive.
“But there’s a lot of online retailers selling some of the stuff we sell but it’s unbranded, you don’t know which factory it’s made in,” he said.
“Price (is the drawcard). Mind you, the picture (online) looks good, whether the picture is as good as the product might be another thing.”
Data from Roy Morgan showed a whopping 3.8 million Australians aged 14 and above bought at least once from Temu over the 12 months until August 2024.
It estimates Shein and Temu had close to a combined $3bn in annual sales in the year to last June.
