According to the Spanish newspaper El Pais, Temu, Shein and Miravia have “threatened” Amazon’s overwhelming dominance in the e-commerce war. Shein is famous for selling clothes at low prices and has achieved dazzling success among young consumers. Whenever one of its temporary stores opens, young consumers will flock to it. In addition, according to major data, in 2022, Shein was the third most popular fashion brand among Spanish consumers, second only to Zara and Primark. The platform has won wide popularity through discounts and promotions.
Similarly, Temu landed in Spain in April 2023, and in July it was already the most downloaded application in China. In August alone, it achieved 1 million downloads, while TikTok ranked second, but far behind Temu, with 600,000 downloads, while Shein and Miravia occupied the third and fourth places respectively.
According to the report, the strategies of these applications are based on a series of purchase incentives, offering discounts with expiration dates and distributing discount codes, which are spread through social networks (including WhatsApp and Telegram groups). For example, the Shein interface welcomes buyers with “25% discount and gifts” and adds a countdown. A simple search on Temu will show discounts of 40%, 45% and up to 85%. 20% welcome coupons can be found in Miravia.
Although the business cost of this model is high, there is financial strength behind these platforms. Temu belongs to China’s e-commerce giant Pinduoduo, and its capital exceeds 100 billion US dollars. Miravia is a brand of Alibaba, and the group is also the owner of AliExpress, with a market value of over 200 billion. At the same time, Shein raised more than $4.1 billion in financing, with an unofficial valuation of $64 billion.
And Amazon has begun to notice the influence of these platforms in some areas. According to the analysis portal Statista, the number of independent visitors in the United States decreased by 17 million to 211 million from December 2022 to March 2023. During the same period, the number of independent visitors of Temu increased from 44.5 million to 70.5 million, and the number of visitors of Shein increased from 6 million to 41 million. In Britain, Amazon lost 1 million mobile users in the first six months of this year, leaving only 8.3 million users. As far as Shein is concerned, the number of mobile users has doubled to 2 million. Since its launch in April, Temu has reached 3.5 million users of its application in just one month.
In addition, according to the latest survey of data.ai, the number of users of e-commerce platforms originating from China such as Temu and Shein increased sharply in the United States. In October alone, the number of users of these two applications increased to about 110 million, a fourfold increase in one year, approaching 90% of Amazon in the United States. In terms of the proportion of users in the world, Temu is 41% and Shein is 18%, both of which exceed Amazon’s 15%. The new downloads of these two applications in the United States are almost five times that of Amazon.
Post time: Nov-15-2023