Shopping on Temu often resembles an engaging arcade game. Instead of controlling a mechanical claw to snag a plush toy, online shoppers navigate their mouse or mobile screens through an array of vibrant gadgets, accessories, and knick-knacks, many priced attractively for impulse buys.
A spinning wheel offers a chance to score discounts, while notifications alert customers that items like a $2 camouflage balaclava and a $1.23 skeleton hand back scratcher are nearly sold out. A flame icon indicates that a $9.69 hoodie featuring a plush cat design is popular. Additionally, a countdown for special deals amplifies the urgency to buy.
This captivating online shopping arena is characterized by impulse buys and whimsical delights, where an endless selection awaits, everyday feels like Cyber Monday, and an addictive rush of excitement is just a click away, often fading before the delivery arrives.
Current trends suggest we are in a rapid era of consumerism, prominently fueled by platforms such as Temu, owned by PDD Holdings in China, and its formidable competitor, Shein. Both capitalize on social media savvy and a vast array of affordable products, primarily shipped directly from merchants in China based on real-time demand.
The unique business strategies of these platforms, alongside an endless stream of digital marketing and influencer promotions, enable them to put pressure on traditional Western retailers this holiday shopping season.
Software analytics firm Salesforce anticipates that nearly 20% of online purchases in the U.S., U.K., Australia, and Canada will originate from four Asian-based e-commerce platforms: Shein, Temu, TikTok Shop, and AliExpress.
Analysts predict these marketplaces will generate around $160 billion in global sales outside of China, with Temu and Shein expected to capture a significant share, with Shein leading the fast fashion segment by revenue.
Lisa Xiaoli Neville, a nonprofit manager residing in Los Angeles, is a dedicated Shein shopper. She has filled her bedroom with items like jeans, shoes, and press-on nails, all initiated by a $2 pair of earrings she discovered via a Facebook advertisement.
At 46 years old, Neville estimates her monthly spending on Shein products is around $75. Among these items are quirky kitchen tools, like a $2 eggshell opener and a portable apple peeler, even though she admits she rarely cooks and is allergic to apples.
“I can’t eat apples; it would be dangerous for me,” she laughed, expressing her desire for the coring tool despite her allergies.
While Shein primarily engages a younger female demographic using influencer collaborations, its strategy seems somewhat toned down compared to Temu, which targets a broader audience.
Shein promotes its products through videos on social media with influencers showcasing trendy clothing and deals, generating excitement around sales events like Black Friday. However, the discourse around Shein also includes criticism regarding environmental issues and labor practices related to fast fashion.
Neville has already earmarked gifts for her loved ones from the site, most items priced below $10. She plans to spend approximately $200 on gifts, a fraction of what she used to spend at other retailers, often up to $500 in previous holiday seasons.
“The visuals just entice you to spend more,” she remarked about the appealing clothing displayed on Shein’s platform.
In contrast, Temu draws shoppers of all ages and genders. It ranked as the second most-visited online shopping destination globally as of September, according to software analysis company Similarweb. Customers flock there for practical items like doormats or whimsical gadgets like a vintage cellphone-shaped whiskey flask.
For Black Friday, Temu advertised significant discounts of 70% on select items. After a purchase, shoppers often receive numerous emails featuring giveaways, incentivizing additional spending.
Ellen Flowers, 36, a lifestyle blogger from Dallas, opted for cost-effective shopping by pairing a $3,500 dining table with $25 chairs from Temu. She has also purchased clothing but noted mixed experiences with quality, leading her to donate items rather than incur return shipping costs.
Flowers intends to buy stocking stuffers and other gifts from Temu for upcoming holiday festivities, emphasizing her fondness for selecting thoughtful gifts for her nieces without the pressure of extravagant brands.
“Kids don’t need the fancy stuff,” Flowers commented. “I can give them something cute from Temu that won’t break the bank.”
Despite their growth, both Temu and Shein face increasing criticism. A campaign against Shein emerged last year from various brands and organizations, and U.S. lawmakers raised concerns about possible forced labor in goods from Temu.
The Biden administration recently proposed stringent rules targeting a trade policy enabling low-cost imports. Experts predict that future tariffs on goods from China could lead to higher prices across retail.
In response to competition, both companies have established warehouses in the U.S. to enhance delivery speeds and contend more effectively with Amazon, which aims to diminish their pricing advantages.
Temu is also in the process of bringing Chinese merchants to stock their inventories in the U.S., thus reducing risks tied to changes in trade regulations.
Both platforms are striving to broaden their appeal beyond price-sensitive consumers who initially embraced them. For instance, Temu is now allowing sellers to ship larger items directly from U.S. warehouses, facilitating the sale of furniture and other bigger-ticket goods.
Meanwhile, The Children’s Place, an American children’s clothing retailer, has recently signed an agreement to sell its products through Shein, emphasizing their expansion strategy. Last year, Shein also partnered with women’s fashion retailer Forever 21, actively working to sign more brands and eyeing a potential listing on the London Stock Exchange.