Diane Biamonte on LinkedIn: Temu shifts focus from US – but air cargo still bullish on ecommerce - The… (2024)

🤔 China's e-commerce discounts have reached new lows, putting existing businesses under serious pressure. 💰 Consumers are now more price-sensitive and demanding bigger discounts. 🤝 Incumbents are struggling to keep up and balance profitability with competitive prices. #ECommerce #Discounts #PriceSensitivity #Competition

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Nice to have my article in ThinkChina on the new wave of Chinese cross border e-commerce companies, and their challenges and opportunities#nusbusiness Yvonne Chan Natalie Law Hui Min Ang

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The cross-border e-commerce enterprise Temu in China is experiencing rapid development, potentially sweeping across the entire United States. The key weapon in this expansion is affordability—cheap, cheap, and cheap. Affordability is the most powerful trump card because, for the majority of consumers, cost-effectiveness is paramount. With the development of e-commerce, Chinese logistics companies are likely to significantly reduce the cost of delivering packages to the United States.Currently, the situation in China suggests that in the next 5 to 10 years, without government intervention and relying on capital, mainstream e-commerce package delivery in the United States will likely not be dominated by UPS, FedEx, or USPS. More and more companies are engaging in distribution in densely populated areas such as Los Angeles, New York, and Chicago, similar to the products offered by Temu, which are characterized by very affordable prices. Although the service quality may need improvement at present, I believe that time will address all concerns, much like how the parcel delivery prices in Chinese e-commerce decreased from 8 Chinese Yuan in 2002 to 2 Chinese Yuan in 2019.#lastmiledelivery #parcel #ecommerce #usps #ups #fedex

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🌐💸 China's E-Commerce Giants Pivot to South Korea Amid Domestic Slowdown 💸🌐As China grapples with economic headwinds, its discount e-commerce retailers are strategically setting their sights on South Korea, seeking new avenues for growth amid domestic challenges.📉 Sluggish Domestic Spending:Amidst a backdrop of real estate crises and declining exports, China's domestic consumption faces notable sluggishness. In October, consumers experienced price declines across various essentials, from coffee to pork. Rising prices have become a stark reality for consumers, adding to the challenges faced on each shopping expedition.💼 A Silver Lining in Overseas E-Commerce:Recognizing the need for diversification, Chinese e-commerce giants are turning their attention to overseas markets, with South Korea emerging as a key focal point. The country's real estate and export troubles have led to a measured shift in focus, seeking to leverage the growing trend of e-commerce sales abroad.🌍 Economist's Perspective:Economist Robert Walker from Australia's Lowy Institute's Indo-Pacific Development Center highlights the positive impact of growing e-commerce sales overseas on the Chinese economy. However, he cautions that while foreign e-commerce consumption contributes positively, it may not be sufficient to completely offset the broader economic slowdown in China or address weaknesses in domestic consumption.🚀 Strategic Global Expansion:The move to target South Korea reflects a strategic effort by Chinese discount e-commerce retailers to navigate challenges at home and tap into the resilient demand in international markets. This underscores the adaptability and foresight of these industry players in a rapidly evolving economic landscape.🌐💡 E-Commerce Giants Chart New Courses: Navigating Challenges, Seizing Opportunities in South Korea! 💼🔍 #ECommerce #China #SouthKorea #GlobalExpansion 🚀💼https://lnkd.in/deRHp2dk

𝗚𝗿𝗲𝗮𝘁 𝗻𝗲𝘄𝘀: 𝗦𝘄𝗶𝘀𝘀 𝗲-𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 𝗶𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗿𝗶𝘀𝗲 𝗮𝗴𝗮𝗶𝗻 This morning, the HANDELSVERBAND.swiss presented the latest numbers of the Swiss online retail market 2023. The numbers show that the Swiss e-commerce market 𝗴𝗿𝗲𝘄 𝗯𝘆 𝟯% last year. With this growth, market turnover has not only 𝗱𝗼𝘂𝗯𝗹𝗲𝗱 𝗰𝗼𝗺𝗽𝗮𝗿𝗲𝗱 𝘁𝗼 𝟭𝟬 𝘆𝗲𝗮𝗿𝘀 𝗮𝗴𝗼, it has also made up for the slump in turnover in 2022. We have summarised a few key takeaways for you here:📈 The biggest winners of the market growth are the 𝗳𝗼𝗼𝗱 𝗮𝗻𝗱 𝘀𝗽𝗼𝗿𝘁𝘀 segments, which both 𝗴𝗿𝗲𝘄 𝗯𝘆 𝟲%. In terms of sales channels, 𝗺𝗮𝗿𝗸𝗲𝘁𝗽𝗹𝗮𝗰𝗲𝘀 𝗮𝗻𝗱 𝗽𝗼𝗿𝘁𝗮𝗹𝘀 𝗮𝗿𝗲 𝘁𝗵𝗲 𝘄𝗶𝗻𝗻𝗲𝗿𝘀.🏆 The 𝗵𝗼𝗺𝗲 𝗲𝗹𝗲𝗰𝘁𝗿𝗼𝗻𝗶𝗰𝘀 𝗮𝗻𝗱 𝗳𝗮𝘀𝗵𝗶𝗼𝗻 segments remain on the podium with the 𝗹𝗮𝗿𝗴𝗲𝘀𝘁 𝘀𝗵𝗮𝗿𝗲𝘀 𝗼𝗳 𝘁𝗼𝘁𝗮𝗹 𝘃𝗼𝗹𝘂𝗺𝗲 in the non-food category at 24% and 17% respectively.🌍 𝗦𝗵𝗼𝗽𝗽𝗶𝗻𝗴 𝗮𝗯𝗿𝗼𝗮𝗱 𝗿𝗲𝗺𝗮𝗶𝗻𝘀 𝗸𝗲𝘆 for the Swiss with +10% compared to last year. The main drivers here are Asian platforms. Would you also like to benefit from the high purchasing power of the Swiss e-commerce market? MS Direct supports you with your market entry with its award-winning digital solution and helps you with your logistics planning as well as with all the administrative work and customs formalities. Learn more about our cross-border service here: https://bit.ly/3Ve6xKA#ecommerce #marketinfo #onlineshop #switzerland #crossborder

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Land of technology & supply chain excellence. Only old-fashioned guys like me still buy stuff in physical stores. […]China remained the world's biggest e-commerce market for the 11th straight year last year with double-digit growth.Online retail sales rose by 11 percent to CNY15.42 trillion (USD2.16 trillion) last year from a year ago, the commerce ministry announced on its website today.People are becoming more keen to skip visits to stores as a record high of nearly 28 percent of all retail sales was made up of online sales of physical goods. […]#china #ecommerce #retail #fmcg #supplychains #business #growth #sales

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【The increase in penetration rate of non-standard cross-border e-commerce will generate more demand for air freight and consolidation warehouses】As the penetration rate of cross-border e-commerce increases, the business model of cross-border e-commerce is also constantly evolving. TEMU and SHEIN, as representatives of non-standard cross-border e-commerce enterprises, have innovated their business models by bringing distributor inventory to the factory end in the form of C2M. The optimization of inventory costs has made the expansion of low-cost SKUs possible. However, the drawbacks of this business model are equally evident. After inventory is far away from consumers, it is difficult to ensure the timeliness of online shopping. Merchants can only choose the logistics form of trunk air freight+pre sorting to maximize the supply chain efficiency to 7-10 days to meet consumer demand. Therefore, the same increase in cross-border sales will generate more demand for air freight and consolidation warehouses.

China's e-commerce war between Shein and Temu is going global. Learn about the cutthroat tactics employed by these Chinese giants and their impact on international markets. How will this escalation affect the future of e-commerce? #Ecommerce #China #GlobalExpansion

Supply Side: Temu and Shein Drive Air Shipping Volume and Rates UpOcean freight rates have plummeted recently. However, air cargo rates are increasing compared to last year, partly driven by the breakneck growth of Chinese eCommerce companies like Temu and Shein.Many companies are pulling back on investments in China manufacturing. However, consumers globally continue fueling the meteoric rise in China eCommerce via Temu and Shein. Shein, pronounced "she-in", has filed for a 2023 IPO. Temu is on track to sell $13 billion in its first year in business.According to Cathay Pacific, over 50% of their air cargo now comes from these two eCommerce retailers alone. Alibaba's Cainiao logistics division said it operates an average of 170 chartered flights or block-space agreements every week - just for eCommerce shipment volume out of China.

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Temu's Strategic Expansion: A New Era for E-Commerce CompetitionChinese retail giant Temu is set to revolutionize the e-commerce landscape by opening its platform to third-party sellers in the U.S., a move that aims to bolster competition against local giants like Amazon, Walmart, and Target. This strategic expansion is not just about competing; it's about enhancing the platform's appeal by incorporating U.S. merchants, promising a blend of quality and competitive pricing. With a notable $9 billion turnover in the U.S. market even before this initiative, Temu's ambition is clear: to attract and retain U.S. retailers and customers alike, amidst concerns over the influx of low-cost Asian products and the sustainability of consumer interest. This development could significantly impact other online retailers, including Etsy and Wayfair, and marks a pivotal moment in Temu's broader strategy, which includes similar plans for Europe. As Temu navigates criticisms over its contribution to U.S. parcel influx, its efforts to balance growth with market expectations are crucial for its ongoing success in the competitive e-commerce arena.#ECommerce #RetailInnovation #TemuExpansion #USMarket #OnlineRetailhttps://lnkd.in/eGyUzT6c

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