Shopping for Shein and Temu for the holidays? You are not alone.
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Shopping at Termu can feel like playing an arcade game. Instead of using a joystick-controlled claw to grab a toy, online marketplace visitors direct their computer mice or cell phone screens to browse colorful gadgets, accessories and toys at prices that look too good to pass up.
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The pop-up spinning wheel offers a chance to win a coupon. Changing captions warn that the $2 camouflage balaclava and the $1.23 back skeleton hand scratcher are “Almost sold out.” A flame symbol indicates that the cool $9.69 cat hoodie is selling fast. A limited-time selection of discounted items adds a sense of urgency.
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Welcome to the new online world of random shopping, a place of guilty pleasure where the choices are huge, every day is Cyber Monday, and the rush of dopamine that will fade by the time your package arrives is just a click away.
By all accounts, we live in an era of fast-paced consumerism, the age of Temu, owned by Chinese e-commerce company PDD Holdings, and Shein, its fiercest competitor, brimming with social media savvy and a relatively low price tag. goods, many of which are shipped directly from Chinese vendors based on a real-time schedule.
The business models of the two platforms, combined with an avalanche of digital or dynamic advertising, have enabled them to give Western retailers a run for their money this holiday shopping season.
Software company Salesforce said it expects one in five online purchases in the US, United Kingdom, Australia and Canada to be made through four online marketplaces based or founded in Asia: Shein, Temu, TikTok Shop – the video arm of e-commerce. -sharing platform TikTok – and AliExpress.
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Salesforce analysts said they are expected to bring in about $160 billion in global sales outside of China. Most of the sales will go to Temu and Shein, a private company thought to lead the global fast fashion market by profit.
Lisa Xiaoli Neville, a nonprofit manager who lives in Los Angeles, is sold on Shein. The bedroom of her apartment is filled with jeans, shoes, nails and other items of the fast fashion retailer, all of which she accumulated after going on stage to buy $2 earrings she saw in a Facebook ad. .
Neville, 46, estimates he spends at least $75 a month on Shein’s products. A $2 eggshell opener, a portable apple peeler and an apple corer — both costing less than $5 — are among the smart, single-use kitchen tools that take up drawer space. He admits that he doesn’t need them because he “doesn’t cook like that.” In addition, he is allergic to apples.
“I won’t eat apples. It’s going to kill me,” Neville said with a laugh. “But I’m still looking for something important.”
Shein, now based in Singapore, uses some of the same web design features as Temu’s, such as pop-up coupons and ads, to entice shoppers to keep clicking, but it appears to be lagging in its tracks.
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Shein primarily targets young women through collaborations with social media influencers. A search of the company’s name on video platforms finds creators promoting Shein’s Black Friday sales event and showing off a slew of trendy clothes and accessories they got for relatively little money.
But content focused on Shein includes videos of TikTokers saying they are embarrassed to admit they shop there and critics scolding fans for ignoring the environmental damage or potential labor abuse associated with products that are produced and shipped around the world at a rapid pace.
Neville has already picked out holiday gifts for family and friends on the site. Most of the products in her online cart cost less than $10, including graphic tees she intends to buy for her son and jeans and sweaters for her daughter. In total, she plans to spend about $200 on gifts, far less than the $500 she spent at other stores in years past.
“The visuals make you want to spend more money,” he said of the clothes in Shein’s store. “They are very cheap and everything is very good.”
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Unlike Shein, Temu’s appeal cuts across age and gender groups. The platform is the second most visited online shopping site in the world, software company Similaweb reported in September. Customers go there for practical things like doors and crazy products like a whiskey flask shaped like a vintage mobile phone from the 1990s.
Temu has advertised Black Friday deals on some items at over 70% off the recommended retail price. A purchase can quickly lead to receiving a bunch of emails offering free gifts. Caveat: customers must buy multiple products.
Ellen Flowers, 36, a lifestyle blogger who lives in Dallas, recently decided to combine a $3,500 dining table with $25 dining chairs from Temu to save money. He also bought clothes from Temu. The quality or fit wasn’t always good, so Flowers donated unwanted pieces to thrift stores to avoid paying return shipping fees that can cost almost as much as clothing.
The flowers plan to buy Temu stocking stuffers and party fabrics for the party to change the decorations in early December. She also wanted to buy necklaces and bracelets to make for her five-year-old niece’s birthday party.
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“I love buying presents for my nieces and nephews,” Flowers said. “Since they are young they don’t need a Louis Vuitton bag. I can give them a good bag from Temu. Then they run out of interest after a month and I buy them another one.”
Despite their rise, Temu and Shein have proven they are ready to bounce back. Last year, a coalition of unnamed brands and organizations launched a campaign against Shein in Washington. American lawmakers have also pointed out that Temu may have allowed smuggled goods to enter the country.
Recently, the Biden administration introduced rules that would break a trade rule known as the de minimis exception, which has allowed many cheap products to enter the US without importation. President-elect Donald Trump is expected to impose higher tariffs on goods from China, a move that could raise prices around the world.
Both Shein and Temu have set up warehouses in the US to speed up delivery times and help them better compete with Amazon, which is trying to erode their price advantage by using a new storefront that also ships products directly from China.
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Meanwhile, Temu is getting Chinese retailers to store inventory in the US, a move that will allow the company to avoid being exposed to changes in the de minimus trade rule, said Juozas Kaziukenas, founder of e-commerce intelligence firm Marketplace Pulse.
The change comes as both Shein and Temu try to expand beyond the trade-hungry consumers their platforms are known for. Temu allows retailers to ship products to customers from local U.S. warehouses and says the move will allow it to sell larger items like furniture as it expands its big-ticket selection.
Meanwhile, American children’s clothing retailer The Children’s Place signed a deal last month to distribute its products through Shein’s platform. Last year, Shein went into business with women’s fashion retailer Forever 21. He has been working to recruit other brands and is reportedly hoping to be listed on the London Stock Exchange.
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