Temu and Shein, two Chinese fast-fashion giants, are determined to increase their dominance in the U.S. market, challenging Amazon’s efforts to capture a share of the budget-friendly e-commerce space.
Temu, which launched in the U.S. 2022, and Shein, which also entered the market that same year, have capitalized on China’s low manufacturing costs and tariff-free import practices. However, recent U.S. tariffs — ranging from 10% to 20% on Chinese imports — pose a potential challenge for these ultra-cheap competitors, threatening to disrupt their business models.
Despite this, Shein’s executive chairman, Donald Tang, has expressed confidence that the company will continue to deliver affordable products to U.S. consumers, regardless of the tariffs. “We will find a way to deliver the goods,” Tang told the French international news agency AFP, stressing that customer experience would remain unaffected. While he did not elaborate on specific plans, Tang highlighted Shein’s business model and its adaptable nature, which has helped it weather previous global disruptions like the pandemic.
Both Temu and Shein has thrived by tapping into the growing demand for budget-friendly, trendy products. With U.S. consumers increasingly price-sensitive amid inflation and rising living costs, these platforms have benefitted from offering low-cost goods and fast shipping.
Their success has made it difficult for Amazon’s (AMZN-0.27%) low-cost platform, Haul, to capture similar market share. Launched in Nov. 2024, Haul has struggled to gain traction, with only a small fraction of U.S. consumers engaging with it compared to the growing base of Temu and Shein shoppers.
As Shein and Temu continue to dominate the budget shopping category, Amazon’s efforts to tap into this market are proving challenging — especially as cash-strapped consumers become more selective in their spending. With tariff concerns looming, the battle for U.S. market share will only intensify, leaving Amazon Haul with an uphill battle to gain ground.
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