American lawmakers demand a ban on Temu! What s wrong?

Mondo Technology Updated on 2024-02-26

The overseas version of Pinduoduo Temu will go overseas in 2022, and the first stop is the United States, and with the Super Bowl advertisement in the United States, Temu quickly made a mark in the hearts of American consumers.

Like the advertising slogan "Shop like a billionaire", temu focuses on low prices, and consumers do not need to bear too much pressure to start the "buy, buy, buy" mode.

However, the rapid growth may have become one of the reasons why TEMU has been criticized by US lawmakers.

Overseas ** report,oneSome U.S. lawmakers are pushing for a ban on the import of goods sold on Temu, saying that Temu is not doing enough to discourage the use of forced labor by ** merchants.

The Information article also mentions that, according to people familiar with the matter, in recent weeks, a number of U.S. lawmakers, including Rep. Brian Lutkemel, have asked for Temu to be added to the list of the so-called Forced Labor Prevention Act in the United States, which amounts to an import ban. If these U.S. lawmakers had contributed to this, it would have crippled Temu's operations in the United States.

Source: Yahoo.

Are these parliamentarians really worried about the existence of so-called "forced labor" that banned temu?

There are analysts in the market that believeThis is also related to the development trend of the e-commerce market in the United States. After AliExpress, SHEIN, and TikTok Shop, there are more rapidly rising opponents like Temu, which is not a good thing for local e-commerce platforms in the United States.

In the middle of the month, the U.S. version of the low-price platform "Wish" was revealed that its parent company, Contextlogic, agreed to pay about 1$7.3 billion in cash to Qoo10 for almost all of its operating assets and liabilities**, including Wish, an e-commerce platform.

At a time when some local platforms in the United States are declining, how hot are China's overseas platforms? How many markets have been divided?

Cargo Facts Consulting has put together some data:Temu ships about 4,000 tons per day, Shein ships 5000 tons per day, Alibaba ships 1000 tons per day, and TikTok ships 800 tons per day. A June 2023 report by the U.S. Congress showed that SHEIN and Temu collectively sent nearly 600,000 packages to the U.S. every day.

Reuters reports"The growth of Shein and Temu is squeezing space in other industries on air freighters".。Retaildive also reported,"Amazon, Walmart, SHEIN, and Temu are eating into market share, while almost all other players are losing market share.

Source: Retaildive

Amazon, the "first brother" in the e-commerce industry, has always been arrogant, and even announced that it will reduce commissions for some clothing products this year to resist the impact of low-cost platforms such as Temu.

Foreign platforms become bigger and stronger, and local platforms are acquired, which is a phenomenon that no market wants to see. If a legislative ban on the sale of temu in the U.S. market can be passed, or if the momentum of temu can be curbed, it will be of great benefit to the maintenance of local platforms, and it is no wonder that there is information such as "lawmakers are pushing for a ban on the import of products sold on temu".

This is not the first time that the United States has used this type of methodTikTok and SHEIN must be able to understand Temu's mood when he sees this message.

A platform known for its fast-fashion clothingShein, which was also previously accused of forced labor and environmental protectionand so on. Even, just recently, Republican Senator Marco Rubio directly asked the U.S. ** Exchange Commission to block SHEIN's plan to go public in New York, unless SHEIN can disclose some information as required.

And the reason behind TikTok's almost banned turmoil is also very clear to everyone.

Even, some overseas consumers are very aware of why the authorities are sending these signals, and many users commented under Yahoo's related reports"The same product, only banned temu, can't ban Walmart and Amazon? "But Walmart and Apple are okay because they're ** high? Understood""If you can't beat it, it's forbidden! ”

Source: Yahoo.

All in all, some U.S. lawmakers are calling for a ban on Temu from selling goods in the U.S., or for the purpose of homeland protection.

The platform should also realize that going overseas does not only mean expanding the marketIt also means facing a variety of policy risks. This requires platforms to not only do market research when entering new markets, but also have an in-depth understanding of local policies and regulations, so that they can respond quickly when risks arise.

At the same time,The platform also needs to establish a complete set of risk prevention and control mechanismsIncluding communication and cooperation with local ** and industry associations, as well as plans to deal with various emergencies.

For sellers,The multi-platform and multi-market layout is indeed an effective way to counter policy risks. By selling on different platforms and marketplaces, sellers can spread their risk and avoid incurring significant losses due to policy changes on a certain platform or marketplace.

Of course, this does not mean that sellers can expand blindly, but they should make reasonable choices according to their actual situation and market demand. Sellers also need to continuously improve their product quality and service level to win the trust of consumers and the recognition of the market.

From most of the cross-border borders.

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