Two companies: “Two Chinese-affiliated online marketplaces are causing significant disruptions in the e-commerce landscape with their remarkably low prices, despite facing scrutiny over labor practices. The rapid ascendance of Temu and SHEIN has been so meteoric that Amazon now regards them as its primary competitors, as per a recent report by The Wall Street Journal.
“Temu, which originated in China and commenced operations in September 2022, has amassed a user base of 51 million in the U.S., while SHEIN, a Chinese-founded fashion and lifestyle retailer, boasts nearly 14 million downloads in the U.S. market.”
With those records, Amazon has competitors. Unfortunately, this battle will not stop there; I see the US Congress opening enquiries on labour practices against these companies.
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As I have written here, be careful investing in China-linked companies in the US. You are better off doing so directly in Beijing. In other words, buy the shares in China, directly, via their parent companies. Like what happened with Russian firms like Yandex, HeadHunter, Ozon and Qiwi, if there is any disagreement between US and China, those companies could be suspended/delisted in New York.
"Two Chinese-affiliated online marketplaces are causing significant disruptions in the e-commerce landscape with their remarkably low prices, despite facing scrutiny over labor practices. The rapid ascendance of Temu and SHEIN has been so meteoric that Amazon now regards them as… pic.twitter.com/apkaihugXZ
— Ndubuisi Ekekwe (@ndekekwe) May 4, 2024
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