Consumers have voted for a level-playing field as competition from ultra-cheap ecommerce players continues to intensify, the latest research from the Retail Technology Show (RTS) reveals.
Ultra-cheap online platforms continue to win favour with price-conscious shoppers; last year, almost half (45%) of UK shoppers made purchases on Temu and Shein. Temu reached 115.7million unique European users each month in the first half of 2025, while Shein said UK sales increased by a third to more than £2billion, overtaking UK rival Boohoo and closing in on Asos.
However, there are signs that their explosive growth may be starting to plateau amid market saturation, tightening regulation and ongoing questions into the sustainability of their trading models.
RTS surveyed 1,000 UK shoppers, finding 54% believe the government should bring in changes to the de minimis threshold to stop ultra-cheap ecommerce products flooding the UK market.
This rises to over two-thirds (68%) of Gen Z. Eight in ten (82%) of Gen Z consumers in the UK shop on Chinese marketplaces, while 41% make at least one purchase on Shein each month – more than twice that of older generations (16%).
“There’s no denying that the lure of ultra-low-priced goods will appeal to squeezed consumers as downward pressure on household budgets continues to suppress spending. But while consumers want access to competitively priced goods, they also want to support home-grown retail brands,” commented Matt Bradley, Founder and Event Director of RTS.
“Consumers are increasingly calling for the playing field to be levelled up to ensure the ongoing health of the retail sector and the High Street in the long-term.”
Last year, tariff changes and the abolishment of the de minimis rule in the US, which previously exempted low-value parcels from fees when entering the North American market, saw growth among Temu and Shein significantly slow. Between March and May 2025, Temu’s daily active users in the US dropped by -52%, while Shein's fell by -25%.
It was widely expected that the UK would follow the lead of the US in scrapping the de minimis rule in last year’s Autumn Budget, amid a broader international shift towards tightening low-value import regulations. However, the rule - which exempts parcels worth less than £135 from import duties - will now remain in place until March 2029, despite pressure from British retailers, including Primark, Currys and Next, and lobbying from the British Retail Consortium (BRC) for its abolition.
Helen Dickinson OBE, Chief Executive of the BRC, will speak on-stage at RTS 2026 in a session which will explore whether the UK Government is helping or hindering retail innovation, growth and investment. She will join Kate Hardcastle MBE for a fireside chat on 22 April exploring policy, trends and the health of the retail sector.
Meanwhile, Retail Economics’ Richard Lim takes to the stage on 23 April to explore how retailers can tackle ongoing economic headwinds and disruption while meeting new and evolving customer demands head-on.
