The Rise of Fast Fashion and Impulse Buying: How Temu and Shein are Revolutionizing the Way We Shop
The New World of Impulse Buying
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.
The Business Model of Temu and Shein
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.
The Rise of Fast Fashion
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.
The Business of Impulse Buying
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.
The Impact on Traditional Retailers
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.
The Rise of Guilty Pleasures
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.
The Controversy Surrounding Shein and Temu
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.
The Future of Fast Fashion
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.
Conclusion
The rise of fast fashion and impulse buying has revolutionized the way we shop, with Temu and Shein leading the charge. While some have criticized the business model for its potential environmental and labor implications, others see it as a way to access affordable and trendy products. As the industry continues to evolve, it will be interesting to see how these companies adapt and respond to the changing landscape.
FAQs
Q: What is Temu and Shein?
A: Temu is an online marketplace owned by PDD Holdings, while Shein is a privately held company that leads the worldwide fast fashion market in revenue.
Q: What is the business model of Temu and Shein?
A: Temu and Shein are e-commerce companies that use social media savvy and an interminable assortment of cheap goods, most shipped directly from merchants in China based on real-time demand.
Q: What is the controversy surrounding Shein and Temu?
A: Shein and Temu have faced criticism for their business practices, including allegations of using forced labor and exploiting workers, as well as concerns about the environmental impact of their fast fashion model.
Q: What is the future of fast fashion?
A: The future of fast fashion is uncertain, with some predicting that the industry will continue to evolve and adapt to changing consumer habits, while others see it as a way to access affordable and trendy products.
