Home Australia Billionaire Aussie businessman Gerry Harvey launches a scathing attack on Chinese online giants Temu and Shein

Billionaire Aussie businessman Gerry Harvey launches a scathing attack on Chinese online giants Temu and Shein

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Gerry Harvey (pictured right with wife Katie Page) has criticized online discount competitors Shein and Temu.

One of Australia’s richest men has branded two Chinese online discount retail giants “pariahs” who are killing local businesses.

Harvey Norman co-founder Gerry Harvey, 84, said Shein and Temu, which began operating in Australia in 2022 and 2023 respectively, offer few benefits in return by not paying taxes or employing Australians.

The stinging attack comes as the billionaire called for a government investigation into the two companies, which has created a “very difficult situation” for local competitors.

“They never pay any taxes here, they don’t employ anyone,” Mr Harvey said. Western Australia newspaper.

‘There should be a government inquiry into the ramifications of this and whether or not they should do anything about it.

“It’s a real concern, whether you let it go or not, I think it’s worth an investigation.”

Harvey, who has amassed an estimated $3.39 billion fortune from his furniture and electrical goods chain, also raised security concerns.

It claimed that online discount retailers frequently sold unbranded products from unknown manufacturers and of dubious quality.

Gerry Harvey (pictured right with wife Katie Page) has criticized online discount competitors Shein and Temu.

Consumers could feel “much more comfortable” buying from trusted brands even if they pay more, he said.

Harvey admitted that online retailers, including US-based Amazon, offer deeply discounted prices that are attractive.

However, it warned buyers that online photos of products may not accurately represent the products when they actually arrive.

Roy Morgan recently revealed that 3.8 million Australians had shopped on Temu in the 12 months to August 2024, while 2 million had made a purchase on Shein.

Most sales came from repeat customers.

Shein and Temu have racked up a combined $3 billion in sales in Australia in the year to last June.

This is the same annual figure reported by Amazon for its sales in Australia in 2023.

Fleur Brown, director of industry affairs at the Australian Retailers Association, told the publication that while online sales have increased, most customers still prefer in-store shopping, which accounts for 80 per cent of purchases. .

He said the appeal of local stores “remains high-quality, locally sourced products, which distinguish them from their foreign online competitors.”

Chinese online shopping companies Shein and Temu have an estimated combined annual revenue from Australian sales of $3 billion.

Chinese online shopping companies Shein and Temu have an estimated combined annual revenue from Australian sales of $3 billion.

Advisory firm Kroll previously revealed that competition from newcomer retailers has contributed to the collapse of Australian clothing brands such as Oroton and Mosaic Brands.

Temus and Shein have been contacted for comment.

It comes after Australian small business owner Lauren Sissons claimed Temu was selling her designs without permission or commission.

The graphic designer designs cards, art prints, notepads, and other stationery.

He was surprised to find copies of his designs advertised on Temu at greatly reduced prices compared to his own products.

Billionaire Harvey Norman (left) called for a government investigation into Temu and Shein. He is pictured with Zara Tindall (second left), his wife Katie Page and Mike Tindall (right) at the Magic Millions last week.

Billionaire Harvey Norman (left) called for a government investigation into Temu and Shein. He is pictured with Zara Tindall (second left), his wife Katie Page and Mike Tindall (right) at the Magic Millions last week.

“It caught my attention a few months ago when I was on Pinterest and saw an ad for one of my greeting cards that I knew wasn’t my mockup,” she told A Current Affair.

“I clicked and it took me to Temu.”

Ms Sissons alerted Temu but claimed the online shopping giant initially told her they would not remove ads featuring her greeting card design.

“It feels like someone has been looking at your work in an opportunistic way, almost like they’re looking to see which design of mine will be the most profitable for them,” Ms. Sissons said.

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