Australian retailers under threat from Chinese web site operator Temu can breathe easy, demand is falling with shipments via Australia Post down during the past six months Vs the prior six months.

Analysts are tipping that Temu’s growth rates are forecast to drop next year. A report by research and advisory firm Forrester, which examined retail predictions for 2025, said the ecommerce giants would both witness a “plummet” in growth rates, despite “relentless” digital advertising and high-profile marketing into various Countries including Australia.

One of the biggest issues appears to be “complaints about quality of goods, unethical production processes, unfair advantages in shipping, and increased nationalism” meant they were targets of environmental groups and governments.

In its recent results, Temu owner PDD also insisted that its “high revenue growth is not sustainable”.

Temu owner PDD Holdings recently saw its value decline by over A$80 billion after the online marketplace missed sales targets.

Shares in the Its shares plunged 29% but are now only 16% down year to date.

The business is also facing competition from Tik Tok.

Co-founder Chen Lei insisting this was expected due to “intensify” in the industry.

He said: “High revenue growth is not sustainable, and a downward trend in profitability is inevitable.”

Co-chief executive Zhao Jiazhen mirrored Lei and said while short-term profits may fluctuate, “in the long run, the decline in our profitability is inevitable”.

Earlier in the year, the parent company saw its quarterly sales more than double as demand for the online discount retailer skyrocketed.