How Chinese shopping platforms will win the holidays

Do you know who the four horsemen of the “shopo-calypse?” are?

Well, they’re Shein, Temu, AliExpress, and the rising TikTok Shop. We came up with the name because according to an article from Forbes, these platforms will “win the holidays” and gain about $160 billion in global ecommerce revenue! ??

How will they do that?

There are many reasons why shoppers are turning to these platforms. Here are the main takeaways:

1. Price point

• Shoppers plan to spend more this holiday season, but their purchasing power is reduced, especially among U.S. consumers.
• This makes Temu and Shein's ultra-low prices hard to beat. Lower product quality and slower deliveries are some of the tradeoffs buyers are willing to risk. ??

2. Process and promotions

• These platforms streamline their supply chains, using technology to connect Chinese manufacturers directly to customers.
• Shein releases products on demand, albeit in small batches. To top it off, their process involves partnering with influencers.
• The platforms’ promotions on social media are extensive and hard to ignore. (No wonder, Western retailers are copying their strategy. ??)

3. Mobile-friendliness (and fun)

• More people are using mobile devices to shop. But 40% of people said they find shopping on mobile difficult.
• This isn’t a problem for Temu and Shein, which hooked shoppers with heavy engagement tactics, such as gamification and video shopping.

?? Do you want to sell on these platforms?

If yes, do note that the competition will be tight. To have a good fighting chance, you must learn how to leverage AI-driven pricing, promotional strategies, loyalty programs, and gamification tactics.