Brian Burt’s Post

If you want to follow the stories of TikTok Shop, SHEIN, TEMU and get more insights over Chuhai (going overseas) of e-comm platform and consumer brands from China, Chinesellers is worthy to subscribe. Juozas Kaziukėnas Eytan Wiener

Shein: Mastering Global Expansion In the shifting retail landscape, Shein is leading the way. This Chinese fast-fashion mogul is dominating global markets and providing a blueprint for aspiring international brands. So, what's their strategy? Shein combines agile supply chain management, sharp market sensing, and deep demographic understanding. They outpace traditional rivals by launching new products within days, not months. Their adept use of social media for marketing puts them in the global spotlight. Key to Shein's success is its commitment to understanding and customizing for local markets. This goes beyond translation - it's about curating user experience and products to resonate across regions culturally. Shein's journey has vital lessons for brands looking to scale globally. Speed, digital savvy, and cultural adaptation are essential. A robust supply chain and profound market insight can set you apart internationally. For businesses eyeing global presence, Shein's playbook is a must-see. Their flexible operations and tailored marketing strategies are not just intelligent; they are survival essentials in the worldwide market. #GlobalExpansion #Shein #SupplyChainManagement #MarketAdaptation

South Africa: local retailer Takealot highlights the impact of online merchants like Shein and Temu on the local industry. Unfortunately, the Competition Commission's Online Platform Market Inquiry didn't examine the impact of these services (or indeed the switch to online purchasing more broadly) and instead, focused on hobbling Takealot with costly and burdensome "remedial actions" (including a requirement to a separate its marketplace and its retail operation, and to make changes to its 'Buy Box'), on the basis that it was a "leading" platform. https://lnkd.in/d-sffJZH

Maybe the most objective article about #Temu I have seen so far. At least not paid for by competition and also not financed by Temu. On the agenda: What are the key insights and figures from TEMU’s launch in France? How does TEMU position itself against established competitors like Shein? Who are TEMU’s customers, and what consumption trends can be observed?

We have a HUGE problem with TEMU & SHEIN in MX and LatAm. Everyone knows we are highly price-sensitive and lack significant purchasing power, making this model even more relevant to our countries. However, the issue lies in the unfair competition with the domestic market. In terms of taxes: - Every other retailer pays import taxes (Arancel & IVA), ISR, Infonavit, IMSS, and more. - TEMU & SHEIN are currently paying nothing and splitting each order into multiple shipments to benefit from de minimis exemptions. Quick numbers suggest they are shipping approximately 600,000 shipments per day, with an average value of $49.90 USD. This equals to over $11 billion USD annually in Mexico alone. How can our domestic retailers compete with a price point that is lower than their COGS? Currently, the government aims to tax these orders, but in my opinion, this will only decrease the number of orders rather than solving the issue for domestic retailers. I don't see a huge issue with brands that have a medium/high price point, or strong brand equity. But AMZ and MELI will experience some cannibalization from goods sold in their marketplaces from white-label products. This could create a huge opportunity for strong DTC brands since the only way to sell in DTC is through strong marketing and branding. What should we do?

🚀 H&M Opens Flagship Store on Pinduoduo – What’s Next? 🛍️ H&M just made a bold move by launching a flagship store on Pinduoduo, stepping into a marketplace traditionally known for budget-friendly products. But why now? 🤔 📉 With H&M’s operating margin dropping and intense competition brewing in China’s fast fashion market, the brand is looking for ways to turn the tide. Enter Pinduoduo – with 900 million users and initiatives like the “10 billion RMB subsidies”, this platform could be the boost H&M needs to hit those year-end targets. 🧐 But the journey ahead won’t be easy. H&M’s recent results show that the brand has a long road to profitability, especially as its live commerce on Douyin and store count in China show sluggish performance. Tapping into Pinduoduo’s massive user base may be a strategic move, but can it help H&M break through its downward trend and regain momentum? Read more on our thoughts here: https://lnkd.in/d2VSxXKa

If you aren't following the online platforms Shein & Temu, below is an article in the WSJ that outlines their strategy and some of the impacts it is having on suppliers. It leads to some interesting strategic and even philosophical questions in the retail ecosystem. What are the strategic, economic, environmental, ethical, and societal impacts of pursuing the lowest cost and shifting roles/accountability in the value chain? Consumers love saving money. Retailers, suppliers, and service providers must remain competitive on costs to survive. When these savings can come at the expense of performative, economic, environmental, or ethical breakdowns in the value & supply chains, consumers traditionally have asked the retailer to wisely evaluate those tradeoffs and held them accountable to do so. Shein and Temu seemingly shift that tradeoff evaluation & accountability to the consumer and the supplier. I question if that system is sustainable. #retailstrategy #cpg https://lnkd.in/gr2g4ahH

Shein which was founded in China but is now based in Singapore, confidentially filed to go public last year. It was seeking a valuation of $80 billion to $90 billion, Bloomberg reported at the time. Shein's business model has been quite successful in the fast fashion industry. Here are some key aspects of their model: ✔️Agility and Speed: Shein excels in quickly responding to fashion trends and bringing new products to market. Their supply chain and production processes are designed for agility, allowing them to keep up with rapidly changing consumer preferences. ✔️Affordability: Shein offers trendy clothing at very low prices, making fashion accessible to a wide range of consumers. Their competitive pricing strategy has contributed to their popularity, especially among younger demographics and budget-conscious shoppers. ✔️E-commerce Focus: Shein operates primarily as an e-commerce platform, leveraging the power of digital marketing and online sales channels. By bypassing the costs associated with physical retail stores, they can offer lower prices to consumers while still maintaining high margins. ✔️Data-Driven Approach: Shein relies heavily on data analytics to understand consumer behavior, identify trends, and optimize their product offerings. This data-driven approach enables them to continuously refine their business strategy and stay ahead of the competition. ✔️Global Reach: Shein has a strong international presence, shipping products to customers worldwide. Their ability to reach a global audience has helped fuel their rapid growth and expansion into new markets. Speed ➕ Mass market ➕ E-commerce ➕ Data ➕ Global 🟰🏅 #ecommerce #IPOsuccess #successformula #shein

Thanks for sharing this, Dennis Hong! High teens in market share?! I think their ability to identify fashion trends is their strength! In fashion, trends matters. The faster you can move to identify and produce those trendy outfits, you win! So kudos to SHEIN for the success and grabbing the market shares! (Check out the picture in the comments to see how much styles Shein has launched as compared to their peers!)

H&M Expands Its E-commerce Presence in China Swedish fashion giant Hennes & Mauritz (H&M) is strengthening its e-commerce presence in China, a strategic move to capture a larger share in the world’s second-largest market. In addition to its established online stores on Tmall and JD.com, H&M has launched new storefronts on platforms like Pinduoduo and Douyin, aiming to reach a broader audience. In China, H&M has shown resilience. 75% sales growth on its Tmall store in the 12 months through August. Even in challenging times, a robust digital strategy and focusing on the right platforms can deliver strong results. In 2021, H&M faced a boycott in China over issues related to Xinjiang, which impacted its brand image and operations in the country. However, the reopening of its Tmall store in 2022, along with its recent expansion to Pinduoduo and Douyin, shows the brand’s determination to regain its foothold among Chinese consumers. #Ecommerce #China #HM