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The Ongoing Expansion and Challenges of Chinese E-commerce

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Overseas Expansion and Challenges of Chinese E-commerce

In the global e-commerce market, Chinese “Ultra-Fast Fashion” brands like Shein and the e-commerce platform Temu have rapidly gained ground in the European and American markets with their low-price strategies. However, these enterprises have also been widely scrutinized due to environmental damage, tariff evasion, labor exploitation, and copyright infringement, among other issues. Following TikTok, these Chinese brands have once again become the focus of attention for countries around the world.

While Shein awaits approval from Beijing to list in New York or London, its sales totaled $45 billion in 2023, with profits exceeding $2 billion, far surpassing competitors H&M and Zara. However, concerns about environmental damage and labor issues are rising in Western countries.

The French National Assembly has voted to pass a bill aimed at regulating the fast fashion industry, introducing an environmental rating system, imposing an “ecological footprint surcharge” on fast fashion items, and even prohibiting fast fashion companies from advertising to reduce their attractiveness to consumers, making France the world’s first country to legislate against “excessive fast fashion.”

Strategies of Chinese E-commerce in Response

Benjamin Cavender, Executive Director of the China Market Research Group (CMR) in Shanghai, points out that Chinese e-commerce has brought significant pressure to the European and American markets, making it crucial to understand how they operate and supervise their suppliers.

To adapt to international regulations, Chinese e-commerce companies like Shein have registered in Singapore. Cavender believes that this is a key step for them to comply with international standards. Chinese e-commerce faces pressure from overseas market consumers to be responsible for their supply chains and ensure that the product sources meet ethical standards.

To avoid potential additional tariffs, some Chinese agents set up companies in Mexico to “cleanse the origin” of their products, and exporters will also underreport prices for goods subject to tariffs.

According to a report by the BBC, one-third of the goods entering the United States through the tax-free limit loophole come from Temu and Shein.

E-commerce Marketing Strategies and Supply Chain Advantages

Shein and Temu have successfully attracted consumers in the U.S., mainly targeting young women who prioritize low prices and “mom-type consumers” sensitive to prices.

Mr. He, who is engaged in overseas e-commerce marketing strategy, pointed out that Chinese e-commerce is driven by price, and their target consumers may be more concerned about the price than the company’s social responsibility. However, he also believes that Chinese e-commerce companies, in order to adapt to overseas markets, are adopting new strategies.

He said that Chinese companies win in the supply chain advantage, “Large quantity, low profit, things that Americans are not willing to do, Chinese are willing to do.” For example, Shein’s fashion products are based in Guangzhou, a global hub for wholesale of clothing, bags, and leather goods, and because of the low production costs, manufacturers are willing to produce even with thin profits.

Minissimi Leather: One-Stop Handbag Supplier Advantages

In this rapidly expanding and competitive e-commerce environment, supply chain management and product quality become key factors. At this time, specialized handbag manufacturers and suppliers like Minissimi Leather are particularly important.

Minissimi Leather is a company with over 30 years of experience in the handbag industry, offering more than 2,000 design options and an annual output of over 2 million pieces. The core technology of the company is “Stress-free Customization,” providing one-stop service from design to production, low MOQ customization, even from 1 piece, and a sampling time of less than 3 days.

In the rapidly developing e-commerce industry, this ability to provide fast, flexible, and high-quality customization services gives Minissimi Leather a clear competitive advantage in supply chain optimization and customer satisfaction.

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