China-based e-tailer Temu is recruiting UK-based suppliers to sell its stock, increasing pressure on high street competitors based on UK soil.
The fast fashion giant’s new ‘local’ initiative means its 12.1 million UK customers can buy products from UK-based suppliers, which arrive in one or two days rather than its usual two-week waiting period.
The UK-sourced products on Temu are mainly bulky goods. This includes furniture, winter coats and kitchen appliances, that are uneconomic to ship from China.
Temu, which has hired directors from its rival eBay to build its new ‘local’ business venture, is reportedly planning to hire dozens more UK employees and to open a London office, according to The Times.
This latest development could come as a response to UK politicians turning up the pressure on overseas retailers, such as Shein and Temu, who ship directly to Western countries from China in small parcels rather than creating fulfilment centres on UK soil. This means they do not have to pay import duties, as packages worth less than £135 avoid tax. This is known as the “de minimis” rule. Shipments greater than £135 can incur customs duties of up to 25%.
Similarly, Shein, which operates a similar business model to Temu, said it was looking to open its first UK-based warehouse. The Singapore-based retailer has been scouting sites in the Midlands’ ‘golden logistics triangle’ (an area known for its logistics and warehousing facilities). Representatives have been hunting for sites between 300,000 and 600,000 sq ft across Derby, Daventry, Coventry and Castle Donington.
A Temu spokesman said: “Temu is actively recruiting UK-based sellers to broaden the range of affordable, quality products on our platform. This initiative reflects our strategy to support local businesses while offering customers a more diverse selection of goods.”
While Shein and Temu thrive, British high-street retailers are facing significantly higher employment costs in the wake of measures announced in the budget. These factors, coupled with its Chinese-based rivals reducing shipping times, could pose a further threat to the UK high street.
