Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
If the retail world were an Avengers movie, Shein and Temu would be Thanos (and some other villain).
The two companies have come under intense scrutiny over the past year regarding their business practices, particularly extremely low pricing that makes it more difficult for other retailers to compete. But the tide might be turning.
- Intent to shop for Shein and Temu fell 8% and 14%, respectively, over the past six months, according to survey data from HundredX.
- The major value proposition for both companies is their low prices, but even that understanding is ever so slightly being chipped away at as shopper perception in value dropped 6% for Shein and 8% for Temu over the last half a year.
HundredX explained that shoppers used to be more willing to put up with long shipping times from China so they could film unboxing hauls for affordable products, but now that doesn’t hold up.
- Suppliers have expressed concern over the companies’ high volume, low margin business model, and even other retailers have pointed a finger at these platforms as the reason behind their poor performance recently.
“Shoppers are telling HundredX that the value of Shein and Temu products is slipping. They still like the prices, but increasingly say they dislike their quality,” HundredX’s report says. “Customers are also souring on the brands’ values and trustworthiness in light of recent copyright, workplace, and sustainability issues, and are now indicating they plan to shop less at Shein and Temu than they used to.”