Introduction to Online Shopping
Shopping on Temu can feel like playing an arcade game. Instead of using a joystick-controlled claw to grab a toy, visitors to the online marketplace maneuver their computer mouses or cellphone screens to browse colorful gadgets, accessories and trinkets with prices that look too good to refuse.
A pop-up spinning wheel offers the chance to win a coupon. Rotating captions warn that a less than $2 camouflage print balaclava and a $1.23 skeleton hand back scratcher are “Almost sold out.” A flame symbol indicates a $9.69 plush cat print hoodie is selling fast. A timed-down selection of discounted items adds to the sense of urgency.
The New World of Impulse Buying
Welcome to the new online world of impulse buying, a place of guilty pleasures where the selection is vast, every day is Cyber Monday, and an instant dopamine hit that will have faded by the time your package arrives is always just a click away.
By all accounts, we’re living in an accelerating age for consumerism, one that Temu, which is owned by the Chinese e-commerce company PDD Holdings, and Shein, its fierce rival, supercharged with social media savvy and an interminable assortment of cheap goods, most shipped directly from merchants in China based on real-time demand.
Business Models and Sales Expectations
The business models of the two platforms, coupled with avalanches of digital or influencer advertising, have enabled them to give Western retailers a run for their money this holiday shopping season.
Software company Salesforce said it expects roughly one in five online purchases in the U.S., the United Kingdom, Australia and Canada to be made through four online marketplaces based or founded in Asia: Shein, Temu, TikTok Shop – the e-commerce arm of video-sharing platform TikTok – and AliExpress.
Analysts with Salesforce said they are expected to pull in roughly $160 billion in global sales outside of China. Most of the sales will go to Temu and Shein, a privately held company which is thought to lead the worldwide fast fashion market in revenue.
Customer Experiences
Lisa Xiaoli Neville, a nonprofit manager who lives in Los Angeles, is sold on Shein. The bedroom of her home is stocked with jeans, shoes, press-on nails and other items from the ultra-fast fashion retailer, all of which she amassed after getting on the platform to purchase a $2 pair of earrings she saw in a Facebook ad.
Neville, 46, estimates she spends at least $75 a month on products from Shein. A $2 eggshell opener, a portable apple peeler and an apple corer – both costing less than $5 – are among the quirky, single-use kitchen tools taking up drawer space. She acknowledges she doesn’t need them because she “doesn’t even cook like that.” Plus, she’s allergic to apples.
“I won’t eat apples. It will kill me,” Neville said, laughing. “But I still want the coring thing.”
Comparison Between Shein and Temu
Shein, now based in Singapore, uses some of the same web design features as Temu’s, such as pop-up coupons and ads, to persuade shoppers to keep clicking, but it appears a bit more restrained in its approach.
Shein primarily targets young women through partnerships with social media influencers. Searching the company’s name on video platforms turns up creators promoting Shein’s Black Friday sales event and displaying the dozens of of trendy clothes and accessories they got for comparatively little money.
Expansion and Challenges
Unlike Shein, Temu’s appeal cuts across age groups and gender. The platform is the world’s second most-visited online shopping site, software company Similarweb reported in September. Customers go there looking for practical items like doormats and silly products like a whiskey flask shaped like a vintage cellphone from the 1990s.
Temu advertised Black Friday bargains for some items at upwards of 70% off the recommended retail price. Making a purchase can quickly result in receiving dozens of emails offering free giveaways. The caveat: customers have to buy more products.
Conclusion
Despite their rise, Temu and Shein have proven particularly ripe for pushback. Last year, a coalition of unnamed brands and organizations launched a campaign to oppose Shein in Washington. U.S. lawmakers also have raised the possibility that Temu is allowing goods made with forced labor to enter the country.
Both Shein and Temu have set up warehouses in the U.S. to speed up delivery times and help them better compete with Amazon, which is trying to erode their price advantage through a new storefront that also ships products directly from China.
FAQs
Q: What are Temu and Shein?
A: Temu and Shein are online marketplaces that offer a wide range of products, including clothing, accessories, and home goods, at affordable prices.
Q: How do Temu and Shein operate?
A: Temu and Shein operate by connecting buyers with sellers from around the world, primarily in China, and offering products at discounted prices.
Q: What are the concerns surrounding Temu and Shein?
A: There are concerns about the environmental and social impact of the fast fashion and consumerism promoted by Temu and Shein, as well as concerns about the potential for forced labor and other labor abuses in their supply chains.
Q: How are Temu and Shein responding to these concerns?
A: Temu and Shein are taking steps to address these concerns, such as setting up warehouses in the U.S. and partnering with brands to offer more sustainable and responsible products.
