Chinese e-commerce platforms Temu and Shein are under increasing scrutiny in the United States over trade rules, with questions arising about their rapid growth and advertising strategies, as reported by FT. Temu, in particular, has seen a meteoric rise, becoming the most-downloaded app in the U.S. within a year, according to the Wall Street Journal. Both companies have been aggressively advertising on major platforms like Facebook, Instagram, and Google, contributing to 10% of Meta's revenues from China. This aggressive marketing strategy, part of a broader trend among Chinese companies willing to invest significantly in user acquisition in the U.S. market, includes spending billions and strategies like TikTok's $1B+ investment in user acquisition. Additionally, Temu, described as an unstoppable force, is planning to open its platform to U.S. merchants, attracting interest from Amazon sellers eager to try it. However, their business models, reliant on regulations such as the UPU and de minimis for cheap parcel shipping to the U.S., could face challenges if these policies are overturned, as highlighted in an interesting piece from FD. South Korea is also investigating data protection practices of e-commerce platforms, including Temu and AliExpress, while Australian businesses may be under threat from the rise of Shein and Temu.
South Korea regulator may sanction Meta over marketplace, say media reports https://t.co/VppNZXl6zl https://t.co/lHPIaYF48G
Interesting piece from @FD Seems like Temu is reliant on two pieces of regulation that enables it to ship parcels cheaply to the US: UPU and de minimis. Temu seems toast if these policies were overturned https://t.co/vZU2Ez6gNb https://t.co/qjqIzuOdVK
One big difference between Chinese and US consumer tech is Chinese companies willing to invest in user acquisition way more aggressively than US companies. TikTok famously spent $1B+ on UA in US, breaking all conventional consumer social UA thinking. Temu upping it by a lot. https://t.co/LBsfobRfbh
Shein and Temu are unstoppable forces in online retail. Are Australian businesses under threat? https://t.co/Y3zIveK6py
Temu will open to US merchants soon, and Amazon sellers are eager to try it. Here's why. https://t.co/B6qonQMWvK
Temu, Shein, and streaming and gaming apps looking to break into the U.S. market are spending billions to get their wares in front of American consumers. https://t.co/o1NZb4onHa
South Korea probes data protection by e-commerce platforms like AliExpress, Temu https://t.co/ct72mNplXg https://t.co/99NczpHWq3
Watch: In just one year, Chinese-founded e-commerce company Temu became the most-downloaded app in the U.S. WSJ breaks down how its continued growth could redefine the industry–just like Amazon’s race for speedy delivery. https://t.co/D9vwg3hn1v https://t.co/D9vwg3hn1v
wondering why your feeds are flooded w/ ads from Temu and Shein lately? Chinese co's are flooding platforms like Facebook, Instagram and Google with ads to grow their businesses in the USA — 10% of Meta's revenues come from china now by @daiwaka and me https://t.co/jqdpX4BwEZ
Shein and Temu: Global online shopping under scrutiny in US over trade rule https://t.co/jIdnkk0L7B
Remember those Super Bowl ads for Temu? @FD has some questions about the company behind the ecommerce phenomenon, via @FT https://t.co/lL4mguo0um