The Storm of Ultra-Low Prices Sweeps Black Friday: The E-Commerce Battle Between Temu and Shein

In November, the month of the significant annual event for e-commerce in Europe and North America, global e-commerce platforms ramp up their efforts, creating a competitive frenzy in the virtual shopping space. Two Chinese cross-border e-commerce upstarts, Temu and Shein, have emerged as competitive players in recent years. Temu, a cross-border e-commerce platform under Pinduoduo, launched overseas in September 2022, attracting consumers through low prices and group-buying strategies. Shein, founded in 2008, has rapidly become a global online fashion retailer specializing in trendy clothing and accessories. It has cultivated a large following of young consumers by emphasizing social media-driven promotion, securing a significant position in the global fashion e-commerce landscape.

According to the latest market data, in the first half of November 2024, Temu's sales surged by 18%, while Shein was just a little behind, achieving a 16% increase in sales. In stark contrast, the North American e-commerce giant Amazon's sales remained flat during this busy shopping season. This striking comparison highlights the rise of emerging Chinese forces in the e-commerce market amid the changing dynamics of the industry.

Entering the E-Commerce Big Leagues: Accelerating Wealth Growth

Temu and Shein, the international versions of "Pinduoduo," have significantly impacted their founders' fortunes. Huang Zheng, the 44-year-old founder of Pinduoduo, with a net worth of 245 billion RMB, ranks 4th on the 2024 Hurun China Rich List. Huang's wealth trajectory is a testament to his visionary business acumen, which led Pinduoduo to unexpected success in the e-commerce industry. In particular, the overseas expansion of Pinduoduo's Temu has been a key driver of his fortune. Huang's wealth reached 400 billion RMB in May, briefly making him China's richest person. This milestone highlights his business brilliance and underscores the substantial global impact of Pinduoduo and Temu in the e-commerce arena.

At 40, Xu Yangtian, the founder of Shein, has accumulated a fortune of 50 billion RMB, ranking 76th on the 2024 Hurun China Rich List. Xu founded Shein, which has become a standout in the global fashion e-commerce field due to its sharp eye for trends and efficient supply chain management. Shein's success is no accident—it has focused on catering to young consumers' desire for personalized fashion, offering rapid product updates, diverse choices, and precise market positioning, winning a massive consumer base.

Black Friday Promotions: A Battle of Discounts

Even before Black Friday officially arrived, Temu was already gearing up with a 42-day promotional marathon, launching events such as the "Black Friday Early Shopping" campaign. The platform's homepage prominently displayed discounts of up to 90%, with the message "Unmissable Deal Alert!" calling attention to the massive savings. Every user had a chance to receive vouchers worth up to $200, along with the opportunity to select three free products from designated categories. Additionally, free shipping for orders over $0.1, 14-day "no delivery, no charge" guarantees, and a 90-day full refund policy reassured consumers, alleviating concerns and encouraging them to dive into the low-cost shopping experience.

Consumers were ecstatic about Temu's Black Friday offers, with many sharing their excitement on social media: "Temu's Black Friday deals are insane! I got a smartwatch I've wanted for ages at a super low price, and the quality looks good!" Another shopper shared: "I was just browsing, but the discounts were so tempting that I bought a bunch of home goods—saved hundreds of dollars, and the shipping was free! It was a steal!"

On the other hand, Shein approached Black Friday with a fashion-focused strategy, launching a vast array of exclusive autumn/winter collections. Its discount strategy was complex but highly appealing, with already affordable items being further discounted—dresses were priced as low as $20, and complete outfits were available for under $100. Some products were also offered through time-limited flash sales, creating a sense of urgency that drove consumers to make quick purchases.

Fashion lovers praised Shein's Black Friday performance: "Shein never disappoints during Black Friday! I got several runway-inspired pieces for a great price, discounts, and stunning designs—no one else will have the same outfit!" Another shopper noted, "I grabbed a super popular eyeshadow palette on flash sale—it was half-price, and the colors are amazing with great pigmentation." Unlike Temu's aggressive price cuts, Shein refined its approach with layered discounts and flash sales, appealing to fashion-conscious shoppers looking for bargains.

Mastering Social Media Marketing

Temu is a master of social media marketing with an acute understanding of leveraging online platforms. During Black Friday, Facebook and Instagram were flooded with Temu's short video ads, showcasing deals like "$1 items unboxing" and "Create a smart home corner for $20." These videos used real-life examples to highlight the platform's unbeatable prices, fueling consumers' desire to shop. Temu also adopted a viral marketing strategy similar to China's "help me lower the price" feature, inviting new users to sign up for large coupons and free product selections. This method created a viral effect, leading to a massive increase in platform traffic. Additionally, collaborations with influencers—especially lifestyle and bargain-focused content creators—helped Temu boost sales through live-streamed Black Friday events. As influencers showcased a wide range of affordable, functional products and held giveaways, viewership and sales saw an impressive uptick.

Shein also made waves by launching an online "Black Friday Fashion Challenge," encouraging users to showcase their Shein outfits on social media and tag the brand for a chance to win shopping vouchers or limited-edition pieces. The challenge quickly gained traction, drawing in new potential customers. Additionally, Shein introduced an augmented reality (AR) and 3D try-on feature in its app, allowing users to virtually try on clothes and see how they would look in different settings. The combination of eye-catching discounts and immersive technology made it all too easy for consumers to make impulse purchases.

The E-Commerce Race Continues

As Black Friday draws to a close, Temu and Shein have successfully carved out their niches in the global market, navigating past traditional giants like Amazon with innovative business models, aggressive marketing strategies, and finely tuned supply chains. The competition between these emerging forces and established players will only intensify. The rise of new powerhouses in the global and digital economy promises consumers an even more exciting and diverse shopping experience. This e-commerce marathon shows no signs of slowing down, with innovation and growth setting the pace for the future.