Temu and Shein Might Just Be Screwed
Briefly

Temu, an ambitious e-commerce platform, faced severe challenges when the U.S. government changed trade policies, specifically imposing high tariffs on Chinese imports. This caught Temu off guard, despite years of warnings. As a result, they rushed to ship products to the U.S. to exploit an earlier loophole. This reaction, however, strained their logistics capabilities and led to an influx of counterfeit listings. Temu was forced to pivot its marketing strategy, moving focus to higher-priced items while navigating a precarious operational environment amid rising costs and competition.
After years of warnings about potential tariffs, Temu found itself unprepared for a sudden and extreme shift in U.S. trade policy, straining its operations.
In reaction to the changing market conditions, Temu had to dramatically adjust its inventory strategy, prioritizing goods already in the U.S. over newly manufactured items.
Read at Intelligencer
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