North American apparel companies have faced competition from China's low-cost e-commerce platforms in recent years, but experts believe that e-commerce platforms such as SHEIN and Temu can only win 1-2% of the market share in the North American market at most, and do not pose a threat to retailers with brand advantages such as Nike.
MarketWatch reported that according to a survey conducted by research and research agency STIFEL, the sales of clothing and shoes in the North American market by Chinese shopping platforms such as Shein and Temu are expected to reach $7 billion in 2024, mainly low-priced goods.
Analysts noted that lower-branded affordable goods, such as affordable clothing retailer Hanesbrands, whose shares have slipped about 40 percent so far this year, have been hit harder. Revolve, an e-commerce platform that focuses on Gen Z consumers, may also be affected; Revolve shares are down about 27% year-to-date.
However, analysts also believe that Chinese e-commerce companies do not pose much of a threat to brands with a certain degree of popularity and high quality, such as Nike, Under Armour, and Lululemon.
*Low-cost Chinese e-commerce platforms have been aggressively entering the European and American markets in recent years, including Chinese cross-border e-commerce platform Shein, which is planning to go public in the United States, and Temu, a shopping platform launched overseas by Chinese e-commerce giant Pinduoduo, which launched products as low as $1 and marketed them through social platforms such as Douyin, quickly attracting young people with limited budgets.
It is rumored in the market that SHEIN has recently submitted a listing application to the US ** Exchange Commission (SEC), however, all walks of life have also questioned that there may be problems with SHEIN's ** chain and asked the authorities to investigate thoroughly.
Header image**: Shutterstock).