Chinese online fast-fashion retailers are swiftly carving out a substantial presence in the US fashion industry, steadily increasing their market share. Shein and Temu, two prominent shopping platforms, have captured the attention of US consumers with their alluring offerings.
Boasting budget-friendly prices, complimentary shipping, regular discounts, and hassle-free return policies, Temu (a subsidiary of Pinduoduo Holdings) entered the US market last year, while Shein made its debut in 2017. These platforms have garnered a growing user base in the US by providing affordable and trendy fashion choices.
In 2022, Shein achieved a remarkable milestone, surpassing Amazon as the most downloaded app in both Apple and Google stores, with a staggering 200 million downloads. The platform's success has translated into significant financial gains, with annual revenue reaching $30 billion and attracting 13.7 million users annually.
Shein's astonishingly low prices include shoes for under $20, dresses for under $15, t-shirts for under $10, swimsuits for under $5, and earrings for under $2. Compared to renowned fashion brands like H&M, Zara, and Uniqlo, Shein offers visually similar products at even more competitive prices, often ranging from $20-$30 per item.
Moreover, Shein's app users enjoy daily discount coupons, ensuring better prices for their purchases. With apparel prices experiencing a 3.1 percent increase in the past year, the inflationary trend is putting strain on the budgets of many Americans, prompting them to seek more affordable alternatives.
Shein and Temu astutely entered the US market during a period of relatively high inflation, benefiting from the demand for cost-effective fashion choices. Apart from their attractive pricing, both Shein and Temu have won over millions of customers with their diverse styles and trendy products.
Outpacing traditional US brands, they rapidly introduce between 2,000 and 10,000 new individual styles (SKUs) to their apps daily, as reported by Rest of World. While Shein focuses primarily on branded apparel, Temu operates as a marketplace, offering a broader array of products, including home appliances, furniture, and accessories.
Bloomberg Second Measure data revealed that Temu's US spending in May surpassed the more established fast-fashion retailer Shein by 20 percent. Notwithstanding their success, Shein and Temu have become embroiled in legal disputes, engaging in lawsuits against each other over alleged antitrust violations and trademark infringements.
The allure of these Chinese online fast-fashion retailers has resonated with US consumers, as they find the products cheaper, more diverse, and appealing compared to mainstream platforms like Amazon.
The growing popularity of these platforms signifies a significant shift in the US fashion landscape, indicating that Chinese e-commerce retailers are poised to play a prominent role in the country's retail market.
