SHEIN’s Post

If you've been enjoying the crazy low prices from Shein and Temu, things might be changing soon. The US is considering a policy change that could impact these retailers' use of a trade loophole referred to as 𝐝𝐞 𝐦𝐢𝐧𝐢𝐦𝐮𝐬 𝐞𝐱𝐞𝐦𝐩𝐭𝐢𝐨𝐧, which means prices could rise. Here’s a breakdown: 𝐖𝐡𝐚𝐭’𝐬 𝐡𝐚𝐩𝐩𝐞𝐧𝐢𝐧𝐠? The Biden administration is looking to tighten rules around the "de minimis" exemption. This loophole allows products valued under $800 to skip import duties and avoid some customs checks. This move follows the ongoing scrutiny of Shein and Temu regarding their supply chain practices. In 2022, it was reported that both companies didn’t pay import duties on the majority of their products, prompting investigations.    𝐖𝐡𝐲 𝐝𝐨𝐞𝐬 𝐢𝐭 𝐦𝐚𝐭𝐭𝐞𝐫? Shein and Temu heavily rely on this provision, allowing them to sell products at ultra-low prices. If this changes, customers will pay 20% or more on their purchases from these retailers. 𝐈𝐦𝐩𝐚𝐜𝐭 𝐨𝐧 𝐭𝐡𝐞 𝐜𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐨𝐧 If Shein’s prices rise by 20%, their dresses, for example, would increase from an average of $28.51 to $34.21. This puts them much closer to competitors like H&M ($40.97) and Zara ($79.69).  If the price gap narrows, will customers stay loyal, or could they shift to other brands? We will see. Could this mark the beginning of a shift in the cross-border D2C landscape? Share your thoughts below 👇🏽 News Source: CNBC #GlobalTrade #ECommerce #FastFashion #Shein #Temu #RetailTrends #SupplyChain #DeMinimis #Tariffs #USChinaRelations #Freight

EU TO CONSIDER CLOSING OFF DUTY EXEMPTION THAT AIDS SHEIN, TEMU Fashion Network Key Takeaways: 🕷 The European Union is working on a proposal to impose import duties on cheap goods bought from online platforms outside the bloc, a move that would primarily target Chinese retailers such as Temu, AliExpress and Shein, according to people familiar with the matter. 🌵 The EU currently has a €150 ($161) duty-free threshold for online purchases that’s meant for small gifts or personal packages but that has enabled a surge in small-value imports from those platforms, the people, who spoke on condition of anonymity. 🍁 While it remains to be seen if there’s consensus across member states to take action, the effort adds to the growing momentum of protectionism against Chinese companies as its cheaper goods threaten local producers. This month, the EU will introduce provisional tariffs of as high as 38% on Chinese electric vehicles.  🌲 Still, inflation across the US and Europe means that there’s substantial demand among consumers for the cheap wares sold by platforms like PDD Holdings Inc’s Temu and those operated by Alibaba Group Holding Ltd. The rise of Shein has taken market share from European apparel retailers like Hennes & Mauritz AB and Inditex’s Zara, while Amazon is planning to launch its own low-cost online storefront.  LEARN MORE: https://lnkd.in/dWEWtNJt #eu #importduties #inflation #economy #fashion #shein

Shein has enlisted a former top European Union official to bolster its lobbying efforts across the region, taking a more active stance toward potential regulatory scrutiny as it plans a stock market debut in London. The online fashion retailer hired former EU budget commissioner Günther Oettinger as a consultant to help it navigate the bloc’s policy environment, a company representative told Bloomberg News. Shein faces a raft of issues including a debate whether to impose customs duties on cheap parcels — a potential game-changer for Shein and other low-cost online retailers like PDD Holdings Inc.’s Temu. The European Commission has kept the ultra-fast-fashion industry in its sights since about 2021, when President Ursula von der Leyen denounced it as “poison” due to the environmental impact of cheap, disposable clothes. That hasn’t prevented Shein from a major European expansion, and it’s preparing an initial public offering that could value the company at about £50 billion ($64 billion). https://lnkd.in/gBqVCRm9

📰 Business News: Are Australian businesses under threat? As the retail industry grapples with the rise of Chinese companies Shein and Temu, uncertainties linger about their long-term influence. While some question their sustainability, others believe they could become significant players in Australia's e-commerce landscape. The retail sector closely monitors their progress to understand their lasting impact on consumer behaviour and local retail dynamics. What's your take on the rise of Asian discount marketplaces like Shein and Temu? Share your thoughts in the comments! Let's discuss the evolving retail landscape. 💬👇 Business Owners: Get High Quality Products Sourced from Asia and Delivered Direct to your Door for Sale in Australia. Are you looking to import quality products from Asia to Australia but don’t know where to start? Are you already importing products from Asia but require a sourcing partner to take care of everything for you? Importing high-quality products from Asia isn’t easy. From product development, finding the right factory, and shipping. It’s a lot of work. Hello, my name is Arthur Esteban from Premier Sourcing Group. We are your ultimate partner in bridging the gap between Asian markets and your business in Australia. Let us simplify the import process by sourcing products directly from overseas manufacturers and delivering them to your door. Partner with Premier Sourcing Group and experience a world of difference in your importing process. Save time, reduce costs, and unlock new potential with our expert services. Special Offer: Get 20% OFF our entire service!!! This is a limited offer so contact us or visit our website so you don’t miss out. M: 0400 559 504 E: info@premiersourcinggroup.com.au W: https://lnkd.in/g7xbKfJh Premier Sourcing Group: Your Gateway to Effortless Importing from Asia to Australia. #productsourcing #PremierSourcingGroup #AustralianSourcing #ProcurementSolutions #BusinessSourcing #SupplyChainAustralia #SourcingExperts #AustralianBusinesses #SourcingStrategy #QualitySourcing #LocalSourcing #AustralianSuppliers #ProcurementServices #BusinessPartnerships #EfficientSourcing #PremierSuppliers

US-based online sellers are copying Shein/Temu's playbook to avoid import duties. Goods arrive in the US, get trucked to Mexico, and then immediately get shipped back to the US duty-free. Companies are importing goods to Mexico or through the port of Los Angeles and then to Mexico. They then ship to consumers in the US from the warehouses in Mexico. Since they were never imported in bulk to the US and each shipment is under the $800 de minimis value, there are no duties to be paid. Those de minimis shipments will hit 1.5 billion this year. 

GERMANS BOUGHT AROUND 1 BILLION ITEMS OF SHOES & CLOTHING FROM PLATFORMS LIKE SHEIN IN 2023: Analysis by the Germen BTE Trade Association found in 2023, German consumers bought around one billion items from non-European platforms like Shein and Temu. An estimated 400,000 packages from Shein and Temu are shipped to Germany daily, often bypassing traditional foreign trade statistics. NOTE - Apparel Insider believes trade statistics across the Western world are not counting direct-to-consumer purchases from Asia, greatly distorting trade figures. The shift in Germany has significantly impacted the local market. Domestic supply dropped to 3.514 billion garments and 266 million pairs of shoes in 2023, from 4.457 billion garments and 413 million pairs in 2022 - a 22% decrease. BTE claims many direct-to-consumer imports from Asia don’t meet EU standards and could pose health risks. They are now advocating for stricter import controls to ensure consumer safety and fair competition. #RetailTrends #ImportRegulations #shein OUR STORY: https://lnkd.in/ekjrbydy

Wishing you all a Happy New Year...and a quick reminder that with Chinese New Year coming up, you may need to plan ahead for any branded merchandise orders. Products sourced from China can be delayed while celebrations take place, so get in touch to find out if your order will be impacted or discuss alternative suppliers and UK stockists. Cheers to 2024! 🥂 #brandedmerchandise #productsourcing #chinesenewyear

Really great overview of the details behind the White House's recent statement on duty free imports. At a high level, high volume, low-value international sellers (think: Temu, Shein) have been shipping orders that are too small to be subject to tax and duties. By removing this advantage, the price of Temu and Shein goods will increase, ideally shifting demand to other competitors in the space. This would be a good thing for domestic production and businesses; however, the downside is prices will increase for the consumer which might dampen overall consumption.

New rules are shaking up the way imports from China are handled! The 321 program is now blocking items affected by tariffs, which impact about 40% of imports. But what about goods coming through Canada and Mexico? Find out more in the video.

Can fast fashion adapt to a new reality? This past Friday, the White House proposed closing a loophole that has allowed fast-fashion giants like SHEIN and Temu to avoid import taxes on small packages. The rule in question is the "de minimis" rule, which allows packages under $800 an exemption from tariffs when shipped directly to U.S. consumers. The new proposed changes would remove this exemption for goods like clothing and textiles from China. Currently, 4 million packages arrive in the U.S. daily under this threshold. Last year, the number surpassed 1 billion, up from 140 million a decade ago, according to White House data. How do you think this will affect major players like Shein and Temu? Weigh in with your thoughts below! #DeMinimis #InternationalTrade #FastFashion #Shein #Temu #TradeNews #Ecommerce