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

One of Australia’s richest men has branded two Chinese online discount retail giants as ‘pariahs’ that are killing off local businesses.

Harvey Norman co-founder Gerry Harvey, 84, claimed that Shein and Temu, which began operations in Australia in 2022 and 2023 respectively, offer little benefit in return by not paying tax or employing Aussies.

The stinging attack comes as the billionaire called for a government inquiry into the two companies which have created a ‘very difficult situation’ for local competitors.

‘They never pay any tax here, they don’t employ anyone,’ Mr Harvey told The West Australian newspaper. 

‘There should be a government inquiry into it as to what ramifications are there and whether they should or shouldn’t do something about it.

‘It’s a real worry, do you let it just go or not, I think it’s worth an investigation.’

Mr Harvey, who has amassed as estimated fortune of $3.39billion from his electrical good and furniture chain, also raised safety concerns.

He claimed discount online retailers frequently sold unbranded merchandise from unknown manufacturers of dubious quality.

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

Consumers could feel a ‘a lot more comfort’ buying from trusted brands even if they pay more, he said. 

Mr Harvey admitted online retailers, including US-based Amazon, offer heavily discounted prices which are alluring.

However, he warned shoppers that online pictures of the goods may not accurately represent the products when they actually arrive. 

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

The majority of sales were from repeat customers.

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

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

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

She said said the drawcard for local stores ‘continues to be high-quality, locally sourced goods, that make them a stand-out from overseas online competitors’.

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

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

Advisory firm Kroll previously revealed competition from retail newcomers has contributed to the collapse of Australian apparel brands such as Oroton and Mosaic Brands.

Temus and Shein were contacted for comment. 

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

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

She was shocked to find copies of her designs being advertised Temu at greatly discounted prices to her own products.

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

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

‘It came to my attention a few months ago when I was actually on Pinterest, and I saw an ad of one of my greeting cards that I knew wasn’t my mock-up,’ she told A Current Affair.

‘I clicked through and it took me to Temu.’

Ms Sissons alerted Temu, but claimed she was initially told by the online shopping giant that they would not remove the ads that showed her greeting card design.

‘It feels like someone’s been looking at your work in an opportunist way, almost like they’re shopping for which design of mine is going to be the most profitable for them,’ Ms Sissons said.

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