Omnisend: Temu and Amazon Face Off in Price War with 40% Savings; TikTok Shop to Launch in Brazil and Japan
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
Trump Likely to Extend TikTok Sale Deadline Beyond April 5
TikTok Eyes Local Services Expansion in the U.S.
Omnisend: Temu and Amazon Face Off in Price War with 40% Savings
TikTok Shop to Launch in Brazil and Japan
Temu Strengthens South African Presence with Zulu and Other Languages
Walmart Pushes Chinese Suppliers for Price Cuts Amid Tariff Struggles
Shenzhen-Based Yarbo Gears Up for Pre-IPO Following 200 Million RMB Funding
PingPong Becomes Best Buy Canada's First Official Cross-Border Payment Provider
China's Home Appliance Exports Breaks $100 Billion for Fourth Year
China Remains EU's Top Import Source in 2024
ASEAN Tops China's Trade Partners in Early 2025
Trump Likely to Extend TikTok Sale Deadline Beyond April 5
On March 6, President Trump suggested he may extend the April 5 deadline for TikTok's sale if no deal is reached. The sale is part of a law signed by President Biden in April 2024, requiring ByteDance to divest TikTok to a non-Chinese company within 270 days, starting January 19. TikTok had previously been suspended in the U.S., with its app removed from stores. Trump's executive order granted a 75-day grace period, expiring April 5, and proposed a U.S.-owned joint venture for TikTok's U.S. operations. Two main groups are bidding for TikTok: one led by Frank McCourt, with Reddit co-founder Alexis Ohanian on board, and another by Jesse Tinsley, which includes YouTuber Mr. Beast, who has 350 million subscribers.
TikTok Eyes Local Services Expansion in the U.S.
TikTok is expanding its "TTLS" (TikTok Local Service) business by hiring staff in Seattle, Los Angeles, and New York, focusing on travel, food, and lifestyle content. After testing the model in Southeast Asia last year, the company aims to tap into local services as a growth opportunity amid pressure on digital ad revenue. Douyin, its Chinese counterpart, has already seen success in this sector, generating ¥320 billion ($44.23 billion) in sales from January to August 2024, surpassing its 2023 total and achieving profitability, according to 36Kr.
Omnisend: Temu and Amazon Face Off in Price War with 40% Savings
Omnisend's recent study reveals that Temu and Amazon are engaged in a fierce price competition, with 77% of Amazon products having close counterparts on Temu, and Temu offering 40% lower prices on similar items. Temu's advantage lies in its cheaper alternatives, though the price difference for identical products is minimal.
The study also raises concerns over brand imitation on Temu, where products often mimic well-known brands with altered logos and packaging. Temu's steep discounts, sometimes reaching 98%, outpace Amazon's, but Amazon maintains a trust advantage with more reviews and less evidence of review manipulation. Despite the concerns, Temu's aggressive pricing strategy continues to attract budget-conscious shoppers.
TikTok Shop to Launch in Brazil and Japan
TikTok Shop is launching in Brazil this April, inviting local sellers with similar qualifications to Mexico. Due to tariff concerns, a fully-managed model is not yet planned. TikTok Shop Japan will open in June for local businesses and individual stores, with applications currently being collected. Additionally, TikTok Shop has introduced a one-click activation feature for European markets, allowing sellers in Spain, Germany, France, or Italy to sell locally and expand to other EU countries.
Temu Strengthens South African Presence with Zulu and Other Languages
Temu has introduced support for multiple South African languages, including Zulu, in a bid to strengthen its presence in South Africa's growing e-commerce market. This makes Temu the first major platform in the country to offer a multilingual interface for its 12 official languages. With Zulu being the most widely spoken home language, the update targets millions of users and reflects Temu's strategic move to tap into the rapidly expanding online shopping market, driven by a surge in internet penetration and e-commerce growth.
Walmart Pushes Chinese Suppliers for Price Cuts Amid Tariff Struggles
Walmart Inc. has asked Chinese suppliers for up to 10% price cuts to offset President Trump's tariffs, but many suppliers, particularly in kitchenware and clothing, have resisted due to already thin margins. Walmart's requests began in February 2024 and intensified when tariffs were threatened to double. Despite challenges, Walmart continues to push for lower prices to protect consumers and support economic growth, though it has revised its sales and profit forecasts downward amid uncertainties around high interest rates and tariff issues.
Shenzhen-Based Yarbo Gears Up for Pre-IPO Following 200 Million RMB Funding
Shenzhen-headquartered robotics firm Yarbo has secured ¥200 million ($27.65 million) in funding, marking a key step in its growth. Established in 2015, Yarbo specializes in smart lawn care robots and operates globally with offices in New York, Hong Kong, and Singapore. In 2024, the company exceeded 6,000 orders, raking in over ¥200 million ($27.65 million) in revenue. With an ambitious goal to ship tens of thousands of units in 2025, Yarbo is on track to maintain its three-year streak of 10x growth while preparing for a Pre-IPO.
PingPong Becomes Best Buy Canada's First Official Cross-Border Payment Provider
On March 10, PingPong, a global payment platform based in Hangzhou, announced a strategic partnership with Best Buy Canada, becoming the retailer's first official cross-border payment provider. This partnership allows sellers on Best Buy Canada to process international transactions seamlessly. Founded in 2015, PingPong revolutionized overseas payment solutions for Chinese e-commerce sellers by lowering transaction fees to under 1%, disrupting the dominance of foreign financial institutions that previously charged fees above 3%.
China's Home Appliance Exports Breaks $100 Billion for Fourth Year
In 2024, China's appliance exports set a new record, with major appliance totaling $128.64 billion, a 14.8% YoY jump, surpassing $100 billion for the fourth straight year. Zhou Nan, Secretary-General of the China Chamber of Commerce for Import and Export of Machinery and Electronics, noted that during 2011-2020, appliance exports grew at a compound annual rate of 6-7%, making this year's surge particularly striking. Air conditioners led the charge, with exports soaring 28.3% to 85 million units. Refrigerators rose 17.9% to 60.48 million, while freezers and washing machines also saw significant gains of 23.4% and 14.2%, respectively.
China Remains EU's Top Import Source in 2024
On March 4, Eurostat reported that China was the EU's largest source of imports in 2024, accounting for 21.3% of total non-EU imports, and the third-largest export market, making up 8.3% of non-EU exports. The EU exported €213.3 billion ($230.61 billion) worth of goods to China, while imports totaled €517.8 billion ($559.82 billion), resulting in a trade deficit of €304.5 billion ($329.21 billion). The top imports included electrical machinery (€96.8 billion), telecommunications and audio equipment (€60.9 billion), and office and data processing machines (€45.9 billion).
ASEAN Tops China's Trade Partners in Early 2025
In the first two months of 2025, ASEAN remained China's largest trading partner, with trade rising 4% to ¥1.03 trillion ($142.38 billion), making up 15.8% of China's total trade. Exports to ASEAN increased 6.8% to $86.63 billion, while imports fell slightly by 0.2% to $56.22 billion. The EU ranked second, with trade down 0.2% to ¥833.3 billion ($115.19 billion), while exports grew 1.8% to $78.56 billion and imports dropped 4.3% to $36.65 billion. The U.S. followed in third, with trade up 3.5% to ¥733.7 billion ($101.42 billion), driven by a 3.4% rise in exports to $75.07 billion and a 3.8% increase in imports to $26.33 billion.