Amazon should be concerned about the rise of Shein and Temu. Temu, a Boston-based offshoot of Pinduoduo, a Chinese e-commerce firm, is making a big splash in the American market with its aggressive marketing tactics. The company spent a significant amount of money on advertising during the Super Bowl, and it is projected to spend billions on marketing this year. Shein, a Chinese fast-fashion seller, has already gained popularity in America due to its clever marketing and low prices. Both companies are investing heavily in digital advertising, which is impacting big tech companies’ earnings. Temu and Shein have gained brand recognition and are attracting American shoppers, but the question remains whether they can win over the mass market. According to Business of Apps, Temu was the most downloaded app in several countries, and Shein is already popular among American teenagers. The aggressive marketing and brand recognition of these companies pose a potential threat to Amazon’s dominance in the e-commerce industry.
Source: www.economist.com