China's Export Stars... Ultra-Low Price Direct Purchase 'Temu·Shuin' Grows Rapidly by 69%

Last Year's Export Amount $62 Billion
Possible Tariff Evasion... Popular in the North American Market

As China struggles with an economic recession, analysis shows that ultra-low-cost direct purchase platforms such as Temu and Shein have significantly driven exports. Although China has recently declared its ambition to become a high-tech powerhouse instead of competing on cheap prices and volume, experts point out that it will still be difficult to change the existing export structure.

An American YouTuber who filmed a video comparing products ordered from Shein and Temu. (Photo by Roxxsaurus)

On the 31st, Bloomberg reported that an analysis of Chinese customs data revealed that exports from ultra-low-cost direct purchase shopping applications (apps) like Temu and Shein grew 69% last year, reaching $62 billion (82.429 trillion KRW). This is the fastest growth among export sectors exceeding $10 billion.

Bloomberg stated, "Currently, only one-third of China's export sectors are showing growth," and described this as "an explosive growth rate that contrasts with the overall declining trend in exports."

These platforms especially grew rapidly based on the North American market. The U.S. Special Committee estimated that 2 million packages under $800, which are exempt from tariffs, enter the country daily, with more than 30% of these accounted for by Temu and Shein. It is analyzed that they were able to grow quickly because they fell into a blind spot of U.S. sanctions against China.

Temu, a subsidiary of Chinese e-commerce company Pinduoduo, grew rapidly by promoting low prices and free shipping under the concept of "shop like a billionaire." Temu became the most downloaded app worldwide last year.

Shein is a fast-fashion platform focusing on clothing priced between $5 and $10 (6,600 to 13,300 KRW) and was the most downloaded app globally in 2022, ahead of Temu. As of last year, the number of Temu and Shein users in the U.S. reached 110 million, about 90% of Amazon's user base.

This content was produced with the assistance of AI translation services.