Discount and fast-fashion apps Shein and Temu duke it out in the west – The Average Joe

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    Discount and fast-fashion apps Shein and Temu duke it out in the west

    victorlei

    February 21, 2023

    2023 shoppers want two things: Cheap prices and speedy delivery.

    Fast-fashion and discount platforms provide both. With consumers strapped for cash, these apps have grown in popularity.

    Two competitors — Temu and Shein — have forced their way into American households.

    1/ Temu is a discount shopping app owned by Chinese e-commerce giant PDD Holdings (NASDAQ:PDD).

    Their US app launched last September and quickly climbed in the App Store — offering products in 14+ categories like apparel, pet supplies and beauty products.

    Many Americans discovered Temu through their “Shop like a Billionaire” Super Bowl ad.

    Legit? Yes. PDD is a massive $110B business.

    Safe? Depends. How much do you value your data? There’s been controversy with data privacy among Chinese companies (notably TikTok). And shoppers share way more personal data.

    But young Americans have gladly parted with their data for years to another competitor.

    2/ Shein (pronounced SHEE-in) is the fast-fashion app that’s become popular among Gen Zs. The company expects sales to double to $60B by 2025 — more than Zara and H&M combined.

    They found their advantage by:

    • Creating a strong supply chain that uses AI and automation to sell cheaper and deliver faster.
    • Reacting to real-time trends — adding as many as 6,000 new items daily.

    Do we taste salt? One big fashion CEO said Shein relies on tax loopholes and a lax attitude towards intellectual property (FT).

    But Gen Zs have no loyalty. Analysts already see Shein interest declining among those born between 1997-2013.

    Fast growth, strong interest… Sounds like a good time to go public (at least for insiders… retail investors, not so much).

    Shein is expected to IPO in the US later this year — joining a hot list of companies waiting at the IPO train station (Reddit, Stripe).

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