Shein brings a new e-commerce landscape and no longer wants to play with Temu!

Shein brings a new e-commerce landscape and no longer wants to play with Temu!

Guangzhou's richest man Xu Yangtian spent more than a decade building Shein, a cross-border e-commerce platform valued at $100 billion. Now he's eating at the same table with Pinduoduo?


As soon as Pinduoduo launched the overseas version of Temu, it was very popular all the way and also put up a "super brand" advertisement in the United States. The slogan "Shop like a billionaire" created a huge wave in the United States. For a time, Temu APP ranked second in downloads in the United States.


Amazon dominates the United States, Shein took more than ten years to gain a foothold, and Temu took only one year to sweep the United States.


Shein

V S

Temu


The cross-border e-commerce market is developing very rapidly, and the growth momentum is also very rapid. However, more than ten years ago, when Shein first positioned itself as a "fast fashion" brand, it was uncharted territory.


More than a decade later, the cross-border e-commerce track has added a heavyweight player, Temu, which has become a platform that is known to all sellers and resisted by all. The aggressive Temu is baring its fangs at Shein.

Temu performs "imitating others"

Temu’s ambition to covet Shein’s position is obvious. Not only has it set up its office “next to” Shein (it seems to be only 800 meters away?), it also often poaches Shein’s talents (I wonder if it is because it is afraid of being caught that it sets up its office so close to Shein for easy sprints?).


I heard that when Temu poached former employees, it even knew the organizational structure of the department the employee was in and who his superior was. Shein prefers to promote talents from within, and Temu poached people at all costs in order to learn Shein's management style. However, it did not learn from Shein and ended up in this situation.



Competition is much more than that.


If Temu wants to seize the market quickly, the best way is to learn from Shein's strategy . Temu's discount prices in various promotional activities are almost 50% of Shein's products in the same period. Temu also continues to brainwash people into low-price consumption. The intensity of advertising on Facebook is more than three times that of Shein.


Not only learning secretly, but also comparing with others!



Recently, Temu sued Shein for "using its market dominance to force clothing manufacturers to sign exclusive agreements with it, lock up the supply chain, and prevent them from cooperating with Temu." However, Shein had already sued Temu in March last year because Temu's practice of disparaging Shein just to promote its own products was really low...

Why is Shein unsurpassed?


Shein has verified the market with the "small order, quick response" model, and has become a legend in the cross-border supply chain!!!


That is , to produce small batches of garments at the lowest cost to quickly test the market. If the effect is good, the back-end supply chain will be used to quickly add orders, produce in multiple batches, and deliver quickly. This rapid response to consumers has greatly increased the hit rate and solved the problem of inventory difficulties in the clothing industry.


In the past, clothing workers could only guess what elements would be popular in the future or create trends themselves. If they guessed wrong, it would result in inventory backlogs or even bankruptcy and losses.



In order to avoid being killed by the market, various clothing brands have launched their own fashion-sensitive models. For example, Zara has launched the SPA model (specialized retailers of private label clothing), which means that clothing companies directly participate in all links to narrow the distance between consumers and companies, so that popular products are fast and accurate. This is why trends change quickly, and Zara can always keep up with fashion trends. (So NANA is also a loyal fan of fast fashion, but now she is decadent...haha) Later, a DTC model appeared, which can be seen as an upgraded version of the SPA model. It is more accurate and efficient in the integrated operation model.


Shein uses a digital tracking system to capture product data from various retail websites. After summarizing the data, designers redesign clothes based on the collected clues. The production process is also shortened to 7 days , while Zara can only guarantee the fastest 14 days! !


Shein is very accurate in understanding consumer preferences! The hit rate is extremely high! The reason is that Shein does not have offline stores and does not need to equip store inventory. It can produce a small amount and consider whether to place additional orders based on consumer feedback, which makes Shein's failure cost lower.



Moreover, the factories are extremely loyal to Shein, which is something Temu cannot hope for . Shein and its supplier factories support each other. If Shein is doing well, it will support the factories. When the factories cannot keep up with the production required by Shein, Shein will help the factories buy equipment and so on. It is a partnership, and the same is true with buyers. But Temu can't do it. Temu has been suppressing sellers and making them miserable. In this regard, it has lost completely.


Temu should learn from this, this is the vision and pattern that a large company should have.

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