Recent ecommerce data from New Zealand Post indicates that Kiwis are increasingly turning to online shopping platforms like Temu and Shein.
The data shows that department, variety, and miscellaneous retail stores—representing the largest sector for online spending—experienced a 5% increase in expenditure during Q4 2024. This growth was largely fuelled by a substantial 23% rise in spending with international retailers such as Temu, Shein, and AliExpress.
Meanwhile, online spending with domestic retailers in this sector decreased by 11% compared to Q4 2023.
Chris Wilkinson, managing director of First Retail Group, stated that the growing preference of New Zealanders for online shopping platforms like Shein and Temu is “swallowing a lot of the already constrained discretionary spending that would otherwise have been sustaining retailers and communities here.”
Wilkinson said consumers were attracted to online retailers in pursuit of better value, especially for clothing and personal care items. However, he also emphasised that shoppers should also look into local options, which “can often offer better quality and comparable value.”
“Supporting retailers here means that we will continue to have shopping choices, convenience, and experiences available in our communities, which we know New Zealanders value,” Wilkinson added.
RX Group managing director Juanita Neville-Te Rito also commented on the recent data, noting that while more people are shopping online, they are spending less per transaction.
According to Neville-Te Rito, this trend indicates a growing inclination towards bargain-hunting, with offshore marketplaces such as Temu, Shein, and AliExpress capturing a major portion of New Zealanders’ spending on non-essential items.
“For local retailers, this is a wake-up call,” she said.
“Competing on price alone with these global giants is nearly impossible, so the focus must shift to differentiation—offering superior customer experience, exclusive products, and strong brand engagement. Kiwis still value quality, trust, and convenience, but retailers need to work harder to showcase those advantages.”
Neville-Te Rito also mentioned that it is not solely a challenge for businesses; the government has a vital role in ensuring a fair competitive environment.
“While New Zealand retailers are required to meet strict compliance, employment, and tax obligations, offshore giants operate with far fewer restrictions, often avoiding local GST and undercutting domestic businesses.”
“Policy-makers need to address these imbalances by enforcing tax fairness, reviewing import duties, and considering measures that support local retail sustainability. Other countries have, and we need to take a stronger stance.
She also pointed out that if this trend persists, it could lead to the decline of local retail, job losses, and a weakened domestic economy.