It can be like playing an arcade game when you shop on Temu. Visitors to the online marketplace use their computer mouse or smartphone screens to peruse vibrant devices, accessories, and trinkets at pricing that seem too good to pass up, rather than reaching for a toy with a joystick-controlled claw.
The possibility to win a coupon is presented by a pop-up spinning wheel. A $1.23 skeleton hand back scratcher and a camouflage pattern balaclava for less than $2 are nearly sold out, according to rotating captions. A $9.69 plush cat print sweatshirt is selling quickly, as indicated by the flame sign. The urgency is increased by a timed selection of discounted items.
Welcome to the new online world of impulsive buying, where there is a huge selection, Cyber Monday is every day, and all it takes is a click to get a dopamine rush that will have subsided by the time your delivery comes.
Temu, which is owned by the Chinese e-commerce company PDD Holdings, and Shein, its fierce rival, are fueled by social media savvy and an endless array of low-cost goods, the majority of which are shipped directly from merchants in China based on real-time demand, indicating that we are living in an era of rapidly increasing consumerism.
This holiday shopping season, the two platforms have been able to compete with Western shops thanks to their business structures and torrents of digital or influencer advertising.
According to software corporation Salesforce, four online marketplaces located or developed in Asia—Shein, Temu, and TikTok—will account for about one in five online purchases made in the United States, the United Kingdom, Australia, and Canada. Browse the e-commerce divisions of AliExpress and TikTok, two platforms for sharing videos.
Salesforce analysts predicted that outside of China, they would generate about $160 billion in sales worldwide. Temu and Shein, a privately held corporation believed to lead the global fast fashion market in revenue, will receive the majority of the sales.
Los Angeles nonprofit manager Lisa Xiaoli Neville is a huge fan of Shein. After using the platform to buy a $2 set of earrings she saw in a Facebook advertisement, she accumulated a collection of jeans, shoes, press-on nails, and other products from the ultra-fast fashion company that now fill her bedroom.
According to Neville, 46, she spends at least $75 a month on Shein merchandise. Among the oddball, one-time-use kitchen items occupying drawer space are a $2 eggshell opener, a portable apple peeler, and an apple corer, all of which cost less than $5. She admits that since she doesn’t even cook that way, she doesn’t need them. She also has an allergy to apples.
I refuse to eat apples. Neville laughed and remarked, “It will kill me.” The coring thing is still what I want, though.
Shein, which is currently headquartered in Singapore, employs some of Temu’s web design elements, such pop-up coupons and advertisements, to entice users to keep clicking, but it seems to take a more measured approach.
Shein primarily targets young women by collaborating with influencers on social media. When you search for the firm on video platforms, you’ll see producers advertising Shein’s Black Friday specials and showing off the dozens of stylish outfits and accessories they purchased for relatively cheap prices.
However, the Shein-focused content also features videos of TikTokers expressing embarrassment at admitting to shopping there and critics scolding fans for failing to consider the environmental damage or possible labor violations linked to quickly produced and shipped goods around the world.
Neville has already used the website to select holiday presents for his loved ones. She plans to purchase graphic T-shirts for her son and jeans and loafers for her daughter, and the majority of the items in her online cart are priced under $10. She intends to spend roughly $200 on presents overall, which is a lot less than the $500 she spent at other stores in previous years.
She was alluding to the clothing on Shein’s website when she commented, “The pictures just make you want to spend more money.” They’re really affordable, and everything is adorable.
Temu’s attraction transcends gender and age, unlike Shein. According to a September analysis by software vendor Similarweb, the platform is the second most popular online shopping site in the globe. Customers come there for both frivolous products like a whiskey flask designed like a vintage 1990s cellphone and useful things like doormats.
Temu promoted Black Friday sales, offering some products up to 70% off the suggested retail price. After making a purchase, dozens of emails offering freebies can soon follow. The catch: consumers must purchase more goods.
In order to save money, Ellen Flowers, a 36-year-old lifestyle blogger from Dallas, recently chose to buy a $3,500 dining table and $25 dining chairs from Temu. Additionally, she has bought clothing from Temu. In order to save money on return shipping, which would have been nearly as expensive as the clothing itself, Flowers gave some unwanted items to thrift shops because the quality or fit wasn’t always excellent.
In early December, Flowers intended to purchase baubles for an ornament-swapping party and stocking stuffers on Temu. Additionally, she wanted to purchase bracelets and necklaces for a planned activity for her niece’s approaching fifth birthday celebration.
“I enjoy purchasing gifts for my nieces,” says Flowers. They don’t require the Louis Vuitton handbag because they are still young. I can offer them a nice Temu handbag. After a month, they will no longer be interested, and I will purchase another one for them.
Temu and Shein have been especially vulnerable to criticism despite their ascent. A coalition of anonymous companies and groups started a campaign against Shein in Washington last year. The notion that Temu is permitting the entry of goods manufactured using forced labor has also been brought up by U.S. politicians.
The Biden administration recently proposed regulations that would crack down on the de minimis exception, a trade law that has permitted many low-cost goods to enter the United States duty-free. Donald Trump, the president-elect, is predicted to impose significant tariffs on Chinese goods, which would probably result in price increases for retailers worldwide.
To improve delivery times and compete with Amazon, which is attempting to undermine their price advantage by opening a new storefront that also ships goods straight from China, Shein and Temu have both established warehouses in the United States.
According to Juozas Kaziukenas, founder of the e-commerce analytics company Marketplace Pulse, Temu is enrolling Chinese merchants to hold inventory in the United States in order to lessen the company’s exposure to changes regarding the de minimus trade regulation.
The shift coincides with Shein and Temu’s efforts to reach a wider audience than the discount-hunting consumers who made their platforms famous. Temu claims the move would enable it to sell larger items like furniture as it extends its inventory of high-priced items. Temu is enabling vendors to ship products to clients from nearby U.S. warehouses.
Last month, American children’s clothing company The Children’s Place agreed to use Shein’s platform to distribute its goods. Shein joined together with women’s apparel brand Forever 21 last year. According to reports, it aims to float on the London Stock Exchange and has begun recruiting additional brands.
The Associated Press, 2024. All rights reserved. All rights reserved. It is prohibited to publish, broadcast, rewrite, or redistribute this content without authorization.
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