Selling things for cheap has long been a winning strategy for Chinese retailers.
Now, with inflation persisting, Chinese ecommerce companies are increasingly moving operations stateside to better serve their American patrons.
Leading the way…
… is Shein, a fast-fashion retailer that’s now the ninth most popular apparel brand among Gen Z women, per Morning Consult.
- The company is on track for $24B in sales this year, and saw US sales grow 43% YoY in Q1. For comparison, H&M’s sales dropped 10%, per Bloomberg.
Shein is popular for its ultra-low-priced, trendy clothing. One caveat? Shipping from China means 10- to 15-day waits. Shein is now looking to reduce that number by setting up US distribution centers focused on basics and seasonal items.
- Analysts question whether this will force Shein to raise prices, as bulk-shipping Chinese items will draw tariff charges and risk inventory challenges.
Shein has drawn criticism for its environmental impact and labor issues, including 18-hour workdays. With a larger US presence, criticism could grow.
Elsewhere…
… TikTok is hiring for dozens of roles to help build US fulfillment centers “from scratch.” The roles are based in Seattle — wink wink, Amazon.
Another app, Temu, recently became the most downloaded shopping app in the US, offering dirt-cheap prices on Chinese products.
A quick search on the app, and you’ll find sneakers, bike helmets, and sweaters for less than $10 each. No wonder its Chinese sibling, Pinduoduo, has 730m+ users.
