Shein and Temu’s growth rates are forecast to drop next year, new data has found.
A report by research and advisory firm Forrester, which examined retail predictions for 2025, said the ecommerce giants would both witness a “plummet” in growth rates, despite “relentless” digital advertising and high-profile adverts, Retail Week reported.
The report found that while Shein and Temu were fast-growing, “complaints about quality of goods, unethical production processes, unfair advantages in shipping, and increased nationalism” meant they were targets of environmental groups and governments.
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Additionally, it referred to fast fashion giant Shein still not having secured its London IPO and Temu having high customer acquisition costs as to reasons behind its forecast of slower growth.
In its recent results, Temu owner PDD also insisted that its “high revenue growth is not sustainable”.
The report comes after Shein recently overtook Boohoo in the UK as its profits doubled, with the Chinese fashion giant revealing a near 40% increase in sales and surging profits.
Meanwhile, PDD saw its value decline by over £41bn in August, after Temu missed sales targets.
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