A fierce battle is unfolding in Australia, where the country’s vibrant $27.2 billion fashion industry is scrambling to survive against a new, powerful competitor: the online marketplace Temu.
As cost-of-living pressures drive millions of Australians to seek out affordable clothing, Temu’s rise has become an existential crisis for local designers and brands who say they cannot compete on price or scale.
Temu has exploded in popularity since its launch in Australia in March 2023, fueled by social media “haul” videos showcasing incredibly low prices, sometimes as little as $0.20 for clothing items.
However, this success has created a profoundly “uneven playing field,” according to Marianne Perkovic, Chair of the Australian Fashion Council. “They use data and algorithms to scale hundreds of thousands of styles at a pace local businesses cannot match,” Perkovic told news.com.au.
She warned that while Australian businesses operate under strict labor, environmental, and consumer protection laws, Temu operates more like a technology platform than a traditional fashion brand, allowing it to avoid many of these costly regulations.
The Australian Fashion Council claims it is hearing consistent reports of original designs being copied and resold at a fraction of the price, further devastating local talent.
Temu, however, is pushing back against the “fast fashion” label. A company spokesperson told news.com.au that the platform is a “general merchandise marketplace,” not a “fast fashion-like retailer,” emphasizing the platform offers everything from 0.20 items to 20,000 flat-pack container homes.
The spokesperson argued that during a cost-of-living crunch, Aussie shoppers are becoming more “open” to Temu to survive and are seeking “sensibility and affordability”. But for an industry that employs close to 500,000 people, the threat is real.
The key question remains: can local businesses compete with a platform that can manufacture and deliver a look-alike version of their design in a matter of days, or will Australia’s homegrown fashion identity be drowned out by the click of a budget-friendly “Add to Cart” button?
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