Shopping habits are always changing, and 2024 will see a further rise in online Asian retail markets, according to one consumer expert.
This time of year is marked by returning Christmas presents and finding the best sales, but retail strategist Miriam Simon warned it is also a time to prepare for the future.
“We have the rise of these ‘super marketplaces’,” she told The Anton Savage Show. “The number one downloaded app in Ireland at the moment is Temu, the Chinese app.
“We're seeing the rise of these big marketplaces like Shein and Temu and, of course, Amazon.”
Temu is an online marketplace operated by PDD Holdings, a Chinese company based in Ireland. It is known for its big discounts on all products.
“Their tagline is ‘shop like a billionaire’,” Ms Simon said.
“It's a different business model – it's called ‘manufacturer to consumer’.
“It’s a different model but it’s very low-price; it is attracting a lot of the tweenies and the younger generation.”
Online shopping
Ms Simon noted Ireland is at the centre of growing Asian markets across Europe and America.
“Shein is based in Dublin, TikTok is based in Dublin, Temu is based in Dublin,” she said.
“Teemu is a more visited website globally than Apple – these are not small businesses. These are like the mega-marketplaces.
“It’s the rise of Eastern retail.”
She also pointed out these online retailers are taking full advantage of their current popularity.
“Amazon Prime Day in July this year was the biggest year in their history,” she said. “I think they were up 87% on their previous year.
“Amazon also did a double dip for the second year in a row - they did another couple of days of deals in October.”
'Protect indigenous retailers'
Ms Simon warned, however, the rise of online shopping even further would mean putting Irish retailers at risk.
“What we're seeing is for those retailers that were really connected with their customers during the pandemic, they seem to be faring pretty well,” she said.
“It is difficult from a trading point of view for traditional retailers, though.
“It is really really important that we protect our indigenous retailers – it's not so much about shopping local but knowing where you’re buying from.”
Even shopping from Irish stores online will lead to more reliable delivery, good quality and a boost for the Irish economy, Ms Simons argued.
A recent PwC Irish Consumer Insights Pulse Survey found people planned to increase online shopping by 27% in 2023, with numbers expected to grow further in 2024.
