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Photo illustration of Shein application in the App Store reflected in the Temu logo.
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The closure of the trade gap and the closure of banned tariffs in China has increased Temu and Shei’s business model in the United States. However, e-commerce companies are likely to remain a dominant force in online retailers.
On Friday, the Rule of Minimis – a policy that releases $ 800 of the US trade tariffs, was officially closed to sending China. He saw that this was subjected to the tasks and thing As high as 120% Or $ 100, a flat fee to rise to $ 200 in June.
The release of a small package was the key to protecting budget prices in the goods they sent from China. Prices for goods sent directly from China to Temu and Shein until the road removal soughtThen with the temu Right to finish sending Completely from outside the US.
Change, many of them will be met by many pests MPs, Labor Unions and RetailHe claimed that Temu and Sheen claimed local enterprises and claimed to be released from the flood with illegal and fake products.
However, in spite of the new trade problems Temu and Shein face, E-commerce and supply chain experts told CNBC that companies still able to compete with their opponents in the United States
“I can’t count them. It’s nothing. Such Chinese e-commerce applications are very masterful and flexible.
“I personally believe that if something, (America’s e-commerce) game accelerated in favor of Temu and Shein … I would not be surprised if the competitive gap, research and consulting company, technical, retail and supply chains added Weinswig.
The condition of the place in place
The loss of Freedom of Minimis, US President Donald Trump long expected a long time temporarily shut down In February. In preparation, Temu and Shein accelerated localization strategies for the United States
PDPlus, E-Commercial Consulting Company CEO SCOTT Miller, said that Sheen and Temu will continue to join their applications to protect American sellers from tariffs.
“Many of the current sellers in Temu and Shein are located in China or nearby countries, not all. Local US companies combine these platforms … It has been planeed or started in several of our customers.”
For more localized brands and vendors, margins will be lower than those sent directly from China, and can be competitive in terms of miles.
Added that the sellers in the temu are less fees, more helpful and more assistant competition and more assistants, more help with sales channels compared to Amazon offers.
Temu belonging to the Chinese e-commerce giant in recent days PDD holdingsOnly from local warehouses began to offer us the goods sent to buyers.
Most of these goods are still caused by China, but after the experts, then the United States is sent to the United States. Although these bulk items are subjected to tariffs, they also benefit from the economies.
This development said that in Miami University can see the diversity of various products in Temu. At the same time, it is likely to restore its direct transportation from China, depending on the results of the trade war between Temu, Washington and Beijing.
Meanwhile, Sheen leaned to expand the supply chain, for example, production operations in the countries Turkey, Mexico and Brazil, and It was reported to have something Plans to pass on to Vietnam.
The company seems directly sent directly from China and likely has more space to win tariffs for the edges of the “high” in the main fast fashion work.
“If there is something that Chinese companies are good, it works on a razor in an intensive competition, if not a negative environment … they find every crumbs they can do to live.”
Competitive prices?
Emergency work plans, experts agree that Trump’s trade policy will continue to affect prices in Temu and Sheen. The companies first announced that they were Raising prices In the middle of April to oppose tariffs.
According to Coresight, the prices of shopping categories in Thanksgiving, increased by 5% and 50% in the last half of April, toys and games and health and health were seen.
However, many trade experts remain confident that the price of Temu and Shei will continue to prove the competition.
Coresight’s Weinswig said that the two companies were able to offer a product in Amazon for previously comparable goods, he said. Thus, more likely to increase prices to double the effects of tariffs, many goods can remain cheaper than American e-commerce sites and retailers.
Jason Wong, who works in the product logistics for the Temu in Hong Kong, speaks Temu to a dollar store while talking to CNBC last month. If the prices in dollar store exceed $ 1 to $ 2, there is still a dollar store.
In addition, Trump’s trading tariffs Chinese and other trading partners also affected e-commerce sites such as America retail and Amazon.
Other preferences
In the beginning of this year, 21 people forever to protect the bankruptcy, Shein and Temu’nun said he used to “he upside down”, he used the freedom of minimis.
However, experts say she only took on the success of Shein and Temu to this trade cavity
According to Anand Kumar, Coresight Research and the research layout in the Shein Coresight, Temu and Shein are very much owe the success of very flexible supply chains to consumer trends.
For example, Shein’s small bulk production – limited quantities, which are typically around 100-200 articles, which are available in 100-200 products – allow to effectively test products and scale products.
Another key is to frequent phone notifications, product recommendations, and perhaps the most important, including the most important strategies for the most registration and perhaps, and perhaps the use of various strategies to indicate discounted prices.
Temu was offered Mega Savings Extravaganza for American consumers on Monday. Some of the most sold items in sale are a stainless steel hook earrings for $ 1.45 and a mattress pad. It is unknown whether the tariffs are harvested in local goods before entering force.
In addition, applicable users are often met with mini-games with opportunities to get various coupons or ways to win a prize, as well as the possibilities of “Mystery Boxes” containing various products.
This “Gamification Strategy” plays a psychology of many US purchasers who have been very often able to buy a lot of money to the consumer psychology, which is often buying a lot of time, and Jin said in Miami University.
Experts also noted that Temu and Shei are very effective Marketingincluding the trailer Live and Social Media.
On the other hand, according to Coresights’ Weinswig, American retailers could not adequately identify Temu and Shein’s threats and adequately adequately adequately adequate and adjust the supply chains and valuables.
