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 giants as “pariahs” who are killing local businesses.

Harvey Norman co-founder Gerry Harvey, 84, claimed Shein and Temu, which launched operations in Australia in 2022 and 2023 respectively, are offering little benefit in return by not paying taxes or hiring Aussies.

The stinging attack comes as the billionaire called for a government investigation into the two companies that have created a “very difficult situation” for local competitors.

“They never pay taxes here, they don’t employ anyone,” Mr Harvey said The Western Australia newspaper.

‘There should be a government investigation into the consequences of it and whether or not they should do something about it.

“It’s a real concern, do you just let it go or not, I think it’s worth investigating.”

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

He claimed that discount online stores often sold off-brand products from unknown manufacturers of questionable quality.

Consumers could experience “a lot more comfort” buying from trusted brands, even if they pay more, he said.

Mr Harvey admitted that online retailers, including US-based Amazon, are offering heavily discounted prices which are attractive.

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

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

The majority of sales came from returning customers.

Shein and Temu achieved combined sales of $3 billion in Australia in the year to June last year.

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

Australian Retailers Association Chief Industry Affairs Officer Fleur Brown told the publication that while online sales have soared, most customers still prefer to shop in-store, which accounts for 80 percent of purchases.

She said the draw for local stores “continues to be high-quality, locally produced goods, which sets them apart from foreign online competitors.”

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

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

Temus and Shein were contacted for comment.

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

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

She was shocked to discover that copies of her designs for Temu were being advertised at deeply discounted prices for her own products.

Billionaire Harvey Norman (left) called for a government investigation into Temu and Shein. He is pictured with Zara Tindall (second from 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 on Pinterest, and I saw an ad for one of my greeting cards that I knew wasn’t my mock-up,” she told A Current Affair.

‘I clicked through and ended up at Temu.’

Ms Sissons warned Temu, but claimed the online shopping giant initially told her they would not remove the adverts featuring her greeting card design.

“It feels like someone has been looking at your work in an opportunistic way, almost as if they are shopping for which design of mine will be most profitable for them,” Ms. Sissons said.