China’s e-Commerce market has been growing steadily over the last decade or so. Driven by a number of major platforms such as AliExpress, Alibaba, SHEIN and Temu, the market has only expanded. With such popularity, this trend looks likely to keep going, possibly growing until 2028. And all of this is fuelled solely by consumers eager to grab a bargain or seven, when they shop for affordable products from sites like these.
Unsurprisingly, the availability of low-cost items across all of these platforms is a major driver for growth. It appeals to both the domestic Chinese market and the international one. Consequently, Chinese e-commerce platforms have, with alacrity, joined the global market, making an immediate impact.
Why Chinese E-Commerce is Here to Stay
Across the board, the future looks bright for Chinese e-commerce platforms. SHEIN has become a mainstay within the industry, offering bargain clothing and fast fashion. Similarly, Temu has continued to grow in its popularity. This was partially due to the low prices, but also through the rather aggressive marketing strategies employed by Temu.
Impressively, Temu has placed a large number of very high-profile ad campaigns throughout its launch and current operations. Many of these were at major events such as the Super Bowl which pushed the ‘Shop like a billionaire’ tag, resulting in an impressive quarter of a million app downloads just that one weekend. As such, consumer interest in the platform is at an all-time high.
Other factors impacting China’s e-commerce growth include the improvement of mobile technology. Within China, almost 100% of internet users access it via a phone. And, mobile payment is now used by over 70% of Chinese shoppers. All platforms offer innovative business models too, utilising a range of e-commerce techniques and engendering trust in their consumers. Finally, within China, these platforms have seen strong governmental support. As these e-commerce platforms provide an improved internet infrastructure, a boost to the economy, and a wider global reach, the Chinese government is only benefiting as well.
The Power of Temu: Affordable Prices and Discount Opportunities
Temu is the newest of these Chinese e-commerce platforms. Launched in 2022, Temu has seen massive growth in the two years since then. In its first year alone, Temu had already expanded into 48 countries, with more than 60 million users in just the US. Not only that, but the platform is home to an enormous array of products. Similar to sites like Amazon, Temu has almost everything you can think of, they’re just even cheaper.
Part of the success was due to the Consumer-to-Manufacturer (C2M) model. This removes any middleman when it comes to products and selling. The model allows cheaper final costs making items incredibly cheap to those around the world. Additionally, the platform offers a gamification feature which encourages users to come back in order to claim discounts and further price reductions. It also has ongoing Temu discount codes on Discoup, promotions, seasonal sales, and more, subsequently offering huge value for money while still maintaining high quality products. This type of discount is very appealing to any consumer looking to grab a bargain.
Temu is also excellent at tracking consumer trends and the more popular items on the site. Unlike other e-commerce platforms which sells this information, Temu provides it to manufacturers free of charge. This means that manufacturers can test the market with smaller product releases.
The future of Chinese eCommerce
It’s probable that the Chinese e-commerce market and platforms will continue to shape the future of online retail. As this market provides consumers with increasingly diverse product options, all at very low costs, it’s likely to keep on going. Each platform has innovative techniques, incorporating the likes of TikTok into marketing, bringing faster shipping and flexible purchasing options to the table.
While this is all well and good from the consumers point of view, the rise of platforms like Temu and SHEIN has had an impact on other areas of the market. Global supply lines are disrupted, and increasing challenges have been placed on small to medium businesses who simply can’t keep up, nor compete with ultra-low prices. Consequently, this rise is a boon to some, a bane to others.
