How Shein and Temu are changing the face of China’s export machine, making life easier for an army of small businesses
- China’s exports via e-commerce are surging, boosted by apps like Shein and Temu
- Newcomers are tapping China’s vast manufacturing capabilities and using their technology to connect producers directly with overseas consumers
The arrival of Chinese shopping apps like Shein and Temu, which bring made-in-China goods directly to overseas consumers, is changing the face of Chinese commerce and making the world’s most powerful export machine even more formidable, according to data and merchants.
Kenny Li, who runs a garment factory in Guangzhou, capital of southern Guangdong province, is typical of the new breed of Chinese exporters. His business has been simplified thanks to fast-fashion app Shein, as he can now delegate pricing, marketing and customer service to the platform. Li says he sold about 70 million yuan (US$9.6 million) worth of clothes to Shein last year.
Li is also trying to diversify his operations by providing goods to Temu, a discount shopping app backed by PDD Holdings. “Having just one client can bring uncertainty, so we decided to try Temu too,” Li said. As a result, he says business is booming.
His story is just one anecdote from a Chinese export landscape that is being transformed by e-commerce apps, which are taking advantage of China’s vast manufacturing capabilities and using their new technology to connect producers directly with overseas consumers.