Inside Temu’s Growing Grip on ANZ Shoppers

Temu has rapidly become a fixture on phones across Australia — and now, New Zealand — luring millions of consumers with ultra-low prices, gamified shopping, and free shipping. But who are these shoppers, what’s driving the uptake, and what does it signal for retailers and brands across ANZ?

Well for one, I am a shopper. And if you are in retailer or sell products to customers in ANZ, and if you are not on the app, then you have no idea of what you are competing against. Or what is so compelling to customers. So sign-up and get your head in the game!

With Temu’s expansion now moving beyond cross-border shipping into local fulfilment and seller recruitment in Australia, it’s time to look at who’s fuelling the growth — and what might be coming next across the Tasman.

A Snapshot of the Temu Customer

One of the most surprising stats? Around 65% of Temu’s Australian user base is male. That’s unexpected in the shopping app space, but it makes sense: Temu’s electronics, tools, car accessories, and DIY categories are packed with ultra-cheap gear that appeals to cost-conscious male shoppers.

But the platform’s reach is much broader.

• Gen Z and Millennials are heavy users, drawn in by TikTok trends, the “Shake & Win” gimmicks, and the ability to experiment with fashion and gadgets on the cheap.

• Teens and students love the price point — $4 earrings, $2 phone cases — and the surprise-and-reward experience that makes the app addictive.

• Older and lower-income shoppers, particularly those feeling cost-of-living pressures, are turning to Temu for basics like homewares, apparel, personal care, and kitchen tools.

  
  

This is not just a Gen Z thing. It's becoming the default marketplace for anyone trying to stretch a dollar.

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Why Are People Still Shopping Despite the Trust Issues?

There’s a paradox at play. Surveys show that up to 88% of shoppers don’t fully trust Temu — concerns range from product quality to data privacy — but the deals are too tempting to ignore. Shoppers are experimenting with small orders, often under $20, and the generous return policies or surprise refunds (sometimes without needing to return the item) ease the risk.

Essentially, Temu is removing the friction that normally stops people trying an unfamiliar platform. Fast shipping on some items, slick UX, and constant promotions keep them coming back.

For many, especially in rural or regional areas where retail options are limited, Temu feels like a digital dollar store with national reach.

How This Is Playing Out in New Zealand

Temu launched in NZ in March 2023 alongside its Australian rollout. While the early impact hasn’t been as widely covered, signs point to a similar consumer uptake curve — driven by value, variety, and convenience.

Currently, Temu operates in NZ purely through cross-border fulfilment. Most items ship from China, taking 7–14 days to arrive. But here's where it gets interesting: as Temu builds out its local fulfilment network in Australia, NZ could benefit secondhand.

Expect faster delivery into NZ via Australian warehouses, and possibly some NZ-specific offers or payment options to sweeten the deal. If Kiwi consumers can get $5 gadgets shipped from Sydney in under a week — without added shipping fees — the appeal grows fast.

And let’s not forget: New Zealand’s high import pricing, small market size, and fewer big-box retail options make the Temu value proposition even more powerful than in Australia.

Check out my other article on The Rise of Temu: How a Chinese E-Commerce Giant Is Reshaping Retail in ANZ

What About Trust in ANZ?

Kiwis are generally quick to try new tech platforms — Trade Me has near-universal reach, and apps like Shein have already made inroads with young fashion shoppers. The same drivers that fuelled Temu’s Aussie rise — price pressure, social buzz, and category breadth — are all present in NZ.

But NZ shoppers also tend to be more vocal when things go wrong. Any stumbles on shipping reliability, GST compliance, or product quality could generate word-of-mouth blowback fast. On the flip side, a few glowing reviews from trusted NZ influencers or blogs could trigger a viral wave of new users.

The Retailer and Brand Perspective: Opportunity or Threat?

Temu’s move to onboard Australian sellers is a game-changer — and it opens the door for the same to happen in New Zealand. Right now, NZ retailers are watching from the sidelines. But if Temu invites NZ businesses to list products for local fulfilment, things change quickly.

Some brands might see it as a cheap and fast way to test new products, offload surplus stock, or reach younger, price-sensitive customers. With no platform fees, the barrier to entry is low.

But the flip side is loss of control:

• Temu sets the pricing.

• Margins are tight.

• Brand perception risks being diluted in a sea of unbranded imports.

For marketplaces like Mighty Ape, The Warehouse, or even category-specific players like Briscoes or Farmers, this model cuts deep. Temu’s constant discounting resets customer expectations around price — and convenience. Waiting 10 days for a $3 item might seem worth it if the local equivalent is $15.

A Shifting Baseline for Price and Value

Temu is not just a new competitor. It’s resetting what "value" looks like for everyday goods. That’s a hard force to fight.

For retailers and brands across ANZ, this means:

• Reassessing your value proposition — Are you competing on price, speed, quality, or trust?

• Watching how fast Temu’s local fulfilment spreads — NZ will likely see faster shipping soon, even without a formal local warehouse.

• Understanding who your most price-sensitive customers are, and what you could lose if they defect. And are they worth chasing?

  
  

Final Thought: The Users Temu Wins May Not Come Back

Temu is winning over people who traditionally shopped at eBay, TradeMe, dollar shops, or lower-tier marketplaces. Once those consumers switch, they may not return to platforms that don’t match Temu on price, simplicity, or delivery options.

For retailers in both Australia and New Zealand, the challenge is no longer hypothetical — it's here, and it’s growing. Understanding who Temu is attracting and why is the first step. Figuring out how to differentiate comes next.

Over the coming weeks I am going to unpack the impact of Temu in detail. How it works, what categories are likely to be most impacted and what you can do to ensure you are positioned in the market to stay relevant, engaging and compelling to customers. Check out my other article on The Rise of Temu: How a Chinese E-Commerce Giant Is Reshaping Retail in ANZ