Fighting each other in the United States? The war between SHEIN and TEMU continues!

Fighting each other in the United States? The war between SHEIN and TEMU continues!


01

Litigation drama: a thrilling legal showdown!


Breaking news! The battle between SHEIN and TEMU in the United States is getting more intense!


SHEIN sued for plagiarism and infringement, TEMU counter-sued for monopoly !



On July 31, according to a court memorandum, Judge Franklin Valderrama believed that TEMU's alleged infringement must be stopped immediately to avoid irreparable damage.


The Illinois federal court made a decision in favor of SHEIN, approving SHEIN's application for a temporary restraining order against TEMU (TRO is generally valid for 14 days, and can be extended to 28 days if the plaintiff has sufficient reasons).


This temporary ban will remain in effect until 6pm on August 17, 2023. Netizens said it was a battlefield full of gunpowder! Why are the two companies so irreconcilable?


02

TEMU is in a low-price market, SHEIN launches a platform model


Since Pinduoduo launched its cross-border e-commerce business TEMU, it has been making great strides.


Although TEMU has achieved rapid development in the North American market in less than a year, SHEIN, as a dominant brand in the North American market, has a relatively solid user base and supply chain system.



After launching the advertisement with low-price brand image, TEMU successfully built the brand’s low-price mindset, which is a positive signal.


In addition, TEMU has enhanced its competitiveness by continuously optimizing its supply chain, providing better user experience, and actively expanding market share.


Despite this, the Internet is still full of negative comments about TEMU, and price and quality have become two difficult trade-offs.


TEMU accused of poor quality


SHEIN realized that in the fiercely competitive e-commerce market, relying solely on low-price strategies may not be able to maintain a competitive advantage in the long run .


In response to this, SHEIN has launched two cooperation models. One is agent operation, which is suitable for sellers who have no sales experience on third-party platforms; the other is independent operation and is currently able to sell in their own stores.


Through these two models, SHEIN has gradually come into the public eye. Many overseas companies can no longer stand idly by, and more and more cross-border merchants are competing to SHEIN.


03

Sales soared 300%, and sellers flocked to SHEIN!


SHEIN fully managed sellers’ order volume


A Chinese company, madly exchanging foreign money, successfully made girls all over the world crazy about it. Some people say that SHEIN’s most successful thing is to give up the Chinese market. China is an Internet “meat grinder” ?



SHEIN has become popular due to its low prices, but many people know that SHEIN is actually a Chinese brand. The involution of the Chinese market gave SHEIN a bold idea to abandon the Chinese market and move overseas. It was also this idea that successfully allowed SHEIN to catch up with the cross-border trend and reach its current scale.


SHEIN's platform model is one of the important factors for its success . By building a platform that integrates brand, supply chain and sales channels, SHEIN is able to achieve efficient operations and flexible supply chain management.


SHEIN's platform model enables it to attract all kinds of brands from around the world to settle in, thereby providing consumers with a variety of product choices. This provides consumers with more choices and also expands SHEIN's market share.


At the same time, sellers in the shopping circle reported that SHEIN’s policies are quite good and its bargaining model is very humane. Compared with platforms that force prices down, SHEIN is still very friendly to sellers.


It is no wonder that a large number of sellers have flocked to the SHEIN platform, and the platform has also launched a series of entry policies to attract the attention of sellers .




Sellers’ entry incentive policy:

1. No commission for the first three months, and the subsequent commission for all categories is 10%;
2. Sellers have pricing power and traffic fees are 0;
3. The product must be shipped from the United States, and the return shipping costs will be borne by SHEIN for the first 3 months.




Requirements for joining SHEIN:

1. Product weight is over 400g, with no volume restrictions.
2. The goods need to be stored in the United States and then delivered to consumers from the United States.
3. Sellers with experience in the North American market (such as Amazon, Walmart, and independent websites) are preferred, and their annual sales have met the requirements.


SHEIN will also provide sellers with a one-stop delivery and fulfillment system, which is an efficient system that has been carefully built over the years to ensure timely delivery of orders and good fulfillment services . By cooperating with SHEIN, sellers can make full use of this system to improve their supply chain and logistics efficiency.


In short, SHEIN aims to jointly promote business development and achieve a win-win situation for both parties by introducing third-party sellers and providing incentives.

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