SHEIN and Temu are fighting for the $10 FMCG market

It took SHEIN ten years to catch up with Zara and become one of the largest fast fashion retailers in the world.

However, an internet upstart may change this situation within a year. Last month, Pinduoduo's overseas brand Temu set a sales target for its North American business: From now until September, the GMV must exceed SHEIN's on at least one day.

It was to mark the one-year anniversary of Temu's expansion into the U.S., according to people familiar with the matter who asked not to be named because they were not authorized to speak publicly.

According to data firm YipitData, Temu’s GMV (gross sales before expenses) grew from $3 million in September last year to $192 million in January this year. Temu also plans to launch operations in Canada, Australia and New Zealand this year.

SHEIN currently dominates the US fast fashion market, far surpassing its competitors Zara and H&M. The Financial Times reported last month that SHEIN expects global GMV to grow to US$80.6 billion in 2025, a 174% increase from last year.

Although both companies are synonymous with low-priced, fast-moving consumer goods, Temu is more like an e-commerce platform. It is not responsible for designing and producing products, but constantly recruiting suppliers. In comparison, SHEIN is more like a brand.

Having said that, since the product categories and price ranges of the two companies overlap too much: both are fast-moving consumer goods priced around US$10, they are bound to face off in the market.

Recently, the smoke of war has even spread to the court. In the US federal court, SHEIN accused Temu of working with social media influencers to spread "false news" about SHEIN when promoting Temu.

Last December, SHEIN filed a lawsuit against Temu in the U.S. District Court for the Northern District of Illinois, accusing Temu of using social media influencers to post remarks unfavorable to SHEIN.

At that time, many bloggers on TikTok would mention SHEIN when sharing Temu.

“No need to go to SHEIN to buy things anymore! Temu has everything and the prices are even cheaper!”

For a time, similar posts flooded every corner of social platforms. It is no wonder that SHEIN insisted on taking this matter to court.

Temu has now asked the court to dismiss the lawsuit. Some industry insiders speculate that as Temu continues to grow and develop, there will be many similar lawsuits in the future.

SHEIN

Temu