The Chinese trading giant on-lineShein, is one of those responsible for the popularity of the fast fashion In Latin America, however, the recent arrival of Temu, a strong competitor with lower prices, could jeopardize its supremacy in the region.
Since its release at the end of 2022, Temu has become one of the most downloaded shopping apps in the United States, where it ranked in the twelfth position during the year-end holidays, two positions above Shein.
The main reason for this instant success is its attractive prices, much lower than those offered by Shein and AliExpress, already known for their offers.
Temu’s marketing strategy is largely geared towards social media, where he has invested millions of dollars in advertising and hired influencers as spokespersons making comparisons to Shein, which has turned platforms like TikTok into battlegrounds between the two brands.
Shein even took Temu to court in the US for “false and misleading statements.” The lawsuit, filed in December, accuses Temu of paying influencers to speak ill of Shein and make advantageous comparisons for the new competitor.
Although it is not yet available in Latin America, already the Shein faithful in the region have begun to take an interest in the new retail company. “If they give you the same thing at a lower price, well, of course I’m going to be interested,” he said to the voice of america Daniela Pajárez, a young Mexican professional who has been buying at Shein “for years”.
irresistible prices
Latin America is among the markets where the retail giant has found one of the most receptive audiences. The main reason: prices.
“The quality is not the best you will find in the market, but for 200 pesos [alrededor de 11 dólares] you can’t ask for more. Between discount coupons and offers, I have come to buy 10 pieces of clothing for less than less than 1,000 pesos [unos 50 dólares]Pajarez insisted.
Karelia Ramírez, a “Shein fan”, admits that every month she buys at least once on the platform. The Colombian affirms that she takes advantage of the free shipping offers on Sundays and the store’s promotions, which offer great discounts during holidays and certain dates.
“The prices are quite competitive if you compare what is sold in Shein with the rest of the virtual stores of other brands, for example Zara or even Aeropóstale, which are considered cheap. Shein overcomes that barrier even more,” he explained. for her part, the Cuban Lisandra Romeo
Shein produces clothing in China at very low costs, allowing it to sell it at affordable prices in the United States, Latin America, Europe and Asia, via direct shipments from a well-oiled network of Chinese suppliers. The company has also begun to operate from local warehouses in the US, which allows for reduced delivery times.
Although it only works in virtual space, Shein has opened pop up or temporary physical stores, where long lines of buyers seem to demonstrate the good health of their business model.
Shein has even collaborated with other pop culture phenomena such as television series ‘Game of Thrones’, ‘The Big Bang Theory’ and ‘Friends’ to sell merchandise. Recently, the Frida x Shein collection together with the Frida Kahlo Corporation, which attracted new customers to the store.
The Colombian Ramírez assured that she “almost bought all the items” allegorical to the Mexican painter, ranging from jackets and cushions with her image to dresses with motifs from her works.
Shein’s clothing is very popular even in countries like Cuba, where the Chinese platform does not ship. “Cubans in Cuba cannot buy directly because you need a PayPal account or a credit card to do so, but those who have family in the US send the links and then those relatives send them to Cuba,” said Romeo, a Miami resident.
As a sign of Shein’s growing interest in Latin America, last February the Chinese giant appointed veteran Bolivian investor Marcelo Claure as its president in the region. This appointment has been accompanied by the announcement that Claure will invest some 100 million dollars in the company.
However, now, Temu’s shadow looms as a threat to Shein’s reign.
Games and challenges to attract customers
“I have already bought twice and I practically live on the platform, which always has good free shipping discount offers and also games in which you participate and offer you free items in exchange for you recruiting more people who can access and download the app,” Romeo explained.
The aggressive marketing strategy on social media, along with lower prices and experiences like games and challenges, is quickly putting Temu on the low-cost retail scene in the region.
“Shop Like a Billionaire” (shop like a billionaire) is the promise you are greeted with when the application is searched. Tutorials on how to buy on the platform abound on TikTok and YouTube, with dozens of questions, and for when in Latin America?
“I am very satisfied, because everything arrived on time and as I expected. Logically it is a good competition in the sense that it is offering you almost the same thing, at a much cheaper price,” insisted the young Cuban.
Bargains vs Environment
Good prices and satisfied customers can sometimes make us forget that the fast fashion or fast fashion has a dark side. This trend consists of cheap, low-cost, high-volume designs with non-biodegradable materials that, however, are not intended for long-lasting use, but rather to encourage the idea of ”buy more, use less.”
“New season, new styles, buy more, buy cheap, change, throw away: Pollution, waste and emissions from fast fashion are fueling a triple planetary crisis,” ensures the United Nations Environment Program (UNEP).
According to the UN, the fashion industry is responsible for 10% of global carbon emissions in the world and 20% of wastewater, a larger footprint than international flights and cargo ships combined.
“Fast fashion is big business and while environmental costs are rising, experts say there is another way: a circular economy for textiles,” UNEP emphasizes.
However, the vast majority of sustainable clothing alternatives remain out of the pocketbooks of the average consumer. So far, one of the alternatives that could gain ground against fast fashion is the thrifting or second-hand shopping, an affordable alternative for those who care about the environment.
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