Shein and Temu Reshape Holiday Shopping, Challenge Western Retail Giants

The rise of Chinese e-commerce platforms Temu and Shein is redefining global consumer habits with low-cost goods and innovative strategies, while drawing scrutiny over labor and trade practices.

• Chinese e-commerce platforms Shein and Temu are dominating global holiday shopping, with Salesforce projecting $160 billion in sales outside China for Asian-based marketplaces this year.
• Temu employs gamified shopping tactics, offering steep discounts and urgency-driven features, while Shein leverages influencer partnerships to target young women with trendy, affordable fashion.
• Both platforms are expanding beyond their low-cost origins, with Temu focusing on larger items like furniture and Shein partnering with established brands like Forever 21 and The Children's Place.
• Criticism surrounds the platforms over allegations of forced labor, environmental concerns, and their use of duty-free trade rules, prompting U.S. lawmakers and regulators to propose stricter oversight.
• To compete with Amazon and mitigate regulatory risks, both companies have established U.S.-based warehouses to improve delivery times and diversify their customer bases.

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