Subsequent got here Temu. It’s a subsidiary of PDD Holdings, a multinational commerce group with in depth expertise managing provide chains. One other of PDD Holdings’ subsidiaries, Pinduoduo, started as a platform to promote recent produce and broadened to different manufactured merchandise. Whereas Pinduoduo operates in China, Temu launched in the US in September 2022 and in Europe in April 2023.
Temu makes use of software program to match China’s manufacturing capability to demand in the US and more and more the remainder of the world, in additional than 250 product classes. The place Shein has 6,000 tightly built-in producers, Temu has greater than 100,000, providing a a lot wider vary of products at startlingly low costs. An electrical cooking pot sells for US$2.14 and a swimsuit for US$6.18, with free transport.
Temu attributes these costs to direct transport from manufacturing unit in China to client in the US, bypassing wholesalers and retailers.
One other new platform from China is TikTok Shop. Constructing on the biggest viewers on the earth for short-form media, TikTok Store makes use of what it is aware of about its viewers’ tastes to assist Chinese language producers discover worldwide markets.
China used to lag behind Japan and South Korea in client model constructing. Many thought that China may lack the sensitivity to Western cultural nuance that Japan and South Korea had mastered.
It seems that algorithms, operating on platform expertise, can do the job. China is constructing family names in retail and media at a bewildering velocity.
