Gen Z E-Commerce Platforms: A Tale of Temu and SHEIN

In the dynamic landscape of e-commerce, two names have emerged as prominent rivals for the attention of Gen Z consumers: Temu and SHEIN. These China-founded platforms have honed their strategies to appeal specifically to the tastes and preferences of the younger demographic, tapping into the zeitgeist of the digital age. Our two recent studies unveil intriguing insights and paradoxes into Gen Z shopping behaviour in relation to Temu and SHEIN.

Concerns about Temu

Our first study, conducted in Denmark and Sweden, shows that while Temu's awareness among young consumers is quite high, it does not automatically translate into purchases. While 71% of 15-25-year-olds know about Temu (an awareness rate comparable to other age groups), only 21% of Gen Zs have shopped on Temu recently, compared to 31% of 26-35-year-olds and 28% of 36-80-year-olds.

73% of Gen Z are concerned about shopping on Temu, and only 21% have made recent purchases.

Opeepl survey (Q2, 2024)

Among all age groups, Gen Z consumers appear to be the most concerned about shopping on Temu, which might explain a lower purchase rate. 73% of Gen Zs have concerns about shopping on Temu. Comparatively, 56% of 26-35-year-olds and 60% of 36-80-year-olds also report having worries about shopping on Temu.

Temu-related concerns are similar across all age groups, with the main ones being:

  • Products being produced under poor conditions: 32%

  • Products coming from China: 30%

  • A large CO₂ footprint during delivery: 24%

The research results suggest that while Temu is favoured among 26-35-year-olds, it is still struggling to capture the hearts (and wallets) of Gen Z consumers.

Love for SHEIN

However, it seems that Gen Z scepticism toward Temu does not necessarily apply to SHEIN. Our Gen Z Tracker study, conducted across the five largest European markets (Italy, Spain, UK, Germany, and France), reveals that SHEIN, known to 73% of Gen Z, entices a significant portion of young consumers to make purchases, with 34% of those familiar with the brand having made recent purchases. The research shows that SHEIN is the most purchased fashion brand among 16-27-year-olds, surpassing established brands such as H&M (with a 33% recent purchase rate) and ZARA (32%).

SHEIN is the most popular fashion brand among Gen Z, with a recent purchase rate of 34%.

The Opeepl Gen Z Tracker, Wave 1, study (Q4, 2023)

Gen Z love for SHEIN is so strong that, in many cases, it outweighs their concern for the environment. Our study indicates that 32% of self-proclaimed environmentally-friendly Gen Z shoppers have recently made purchases from the brand which is often criticised for its negative environmental impact. This percentage is comparable to the 34% of all surveyed Gen Z consumers who have made recent purchases from SHEIN. These surprising findings suggest that SHEIN effectively caters to both environmentally-conscious and less environmentally-conscious young consumers, highlighting a complex interplay between values and actions.

SHEIN effectively caters to both environmentally-conscious and less environmentally-conscious Gen Z consumers.

The SHEIN phenomenon might be explained by the drivers that influence Gen Z fashion purchases. Our study reveals that personal factors account for 79% of Gen Z buying decisions in the fashion category. These factors include "brand love" (43%), a "feeling of being valued" (15%), a "sense of belonging" (9%), a desire for brands that "enhance their personal image" (7%), and "appreciation for customised products" (6%).

The Opeepl Gen Z Tracker, Wave 1, study (Q4, 2023)

Conversely, social factors, including "support for charities" (10%), promotion of "diversity and inclusion" (6%), and "environmental responsibility" (4%), have a share of 21% in explaining recent Gen Z fashion purchases. This suggests that while Gen Z acknowledges and supports these social issues, immediate personal motivations are more important to them when making fashion purchases

Navigating Gen Z E-commerce Landscape

In the ever-evolving world of e-commerce, the examples of Temu and SHEIN illuminate intriguing facets of Gen Z shopping psyche. While Temu grapples with scepticism among young consumers, SHEIN manages to capture the hearts and wardrobes of Gen Z, transcending environmental concerns.

Understanding Gen Z shopping psyche requires a holistic view that acknowledges not only their social consciousness but also personal motivations that shape their purchasing decisions.

In this paradoxical dance of consumer choices, it becomes clear that understanding the nuances of Gen Z shopping behaviour requires a holistic view—one that acknowledges not only their social consciousness but also the powerful pull of individual expression and brand affinity in shaping their purchasing decisions.

Discover more Gen Z Trends

Opeepl Gen Z Tracker provides the latest insights into Gen Z consumer confidence, attitudes and worries, popular media channels, trending brands & purchase drivers across different categories.