TikTok Shop Opens Doors to Chinese Sellers in the EU and UK; Shein Leads Apparel Market Growth in 2024
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
TikTok U.S. Ownership in Flux as ByteDance Weighs Investor Plans
TikTok Shop Opens Doors to Chinese Sellers in the EU and UK
Pinduoduo Faces Globalization Challenges as Overseas Focus Intensifies
TikTok Shop Surges as UK's Fastest-Growing E-commerce Platform
Shein Leads Apparel Market Growth in 2024
Costco Pressures Chinese Suppliers Amid Rising Tariffs
MINISO Sees 42% Surge in Overseas Revenue in 2024
MIXUE Seeks International Talent for Global Growth
XAG's Overseas Revenue Set to Outpace Domestic Sales by 2027
TikTok U.S. Ownership in Flux as ByteDance Weighs Investor Plans
ByteDance investors, including General Atlantic, SIG, KKR, and Coatue, are exploring an equity restructuring plan to increase their stake in TikTok's U.S. operations, potentially acquiring shares from Chinese investors. The final deal structure is uncertain, but ByteDance aims to retain a stake while considering strategic investors. Oracle is expected to continue handling U.S. user data storage and has recently emerged as a top contender for a TikTok joint venture. ByteDance's latest disclosure shows global investors hold 58%, founder Zhang Yiming owns 21%, and employees have the remaining 21%.
TikTok Shop Opens Doors to Chinese Sellers in the EU and UK
TikTok Shop has updated its cross-border entry requirements, allowing businesses from mainland China and Hong Kong to register in the EU (Germany, Spain, France, and Italy) and the UK. This change simplifies the process for sellers, enabling them to sell across the entire Europe by registering in just one country, reducing operational complexity and costs. Meanwhile, regulatory challenges in the U.S. continue to impact TikTok Shop's expansion, prompting the platform to focus more on its growing European market.
Pinduoduo Faces Globalization Challenges as Overseas Focus Intensifies
Pinduoduo's 2024 financial results show a 59% revenue increase to 393.8 billion RMB (54.32 billion USD), with net profit rising 87% to 112.4 billion RMB (15.51 billion USD). In Q4, revenue reached 110.61 billion RMB (15.26 billion USD), up 24.4%, while adjusted net profit grew 17% to 29.85 billion RMB (4.12 billion USD). Despite strong overall performance, quarterly growth slowed. The company is focusing on Temu's overseas expansion but faces challenges from a rapidly changing external environment, intense competition, and potential policy shifts, as noted by Chairman Chen Lei.
TikTok Shop Surges as UK's Fastest-Growing E-commerce Platform
NielsenIQ's recent report reveals TikTok Shop's rapid growth since its UK launch in 2021, becoming the country's fastest-growing e-commerce platform and third-largest online marketplace by 2024. The report highlights that 54% of shoppers made their first purchase on TikTok Shop in 2024, while repeat customers accounted for 72% of total sales and shopped twice as often as new users. A forecast by WGSN, in partnership with TikTok Shop UK, predicts the short-video and live-streaming e-commerce market will grow from £7.4 billion to nearly £16 billion by 2028.
Shein Leads Apparel Market Growth in 2024
In 2024, Shein emerged as the biggest winner in the global apparel market, according to GlobalData. Amid a challenging economy, consumers became more selective, with the top 10 brands gaining market share while smaller players struggled. Shein's market share is forecast to increase by 0.24 percentage points to 1.53%, driven by its low prices and fast response to fashion trends. Despite ongoing criticism of its labor practices and environmental impact, Shein outperformed rivals, particularly ASOS and boohoo.com, which saw significant declines in sales.
Costco Pressures Chinese Suppliers Amid Rising Tariffs
Costco is pressuring Chinese suppliers to lower prices in response to U.S. tariffs imposed under President Donald Trump. This follows similar actions by Walmart and Target, with the latter already reducing its reliance on Chinese manufacturing. Since 2019, Costco has opened seven warehouses in China, and about one-third of its U.S. store products are imported, with less than half coming from China, Mexico, and Canada. CEO Ron Vachris noted that if tariffs significantly increase costs, Costco may adjust its international supply chain. The ongoing tariff hikes are putting additional strain on Chinese suppliers already facing shrinking margins.
MINISO Sees 42% Surge in Overseas Revenue in 2024
MINISO's 2024 financial report shows a 22.8% YoY revenue growth, reaching 17 billion RMB (2.35 billion USD). Overseas revenue surged 42% to 6.68 billion RMB (921.47 million USD), and adjusted net profit increased by 15.4% to 2.72 billion RMB (375.21 million USD). The company expanded globally to 7,780 stores, adding 1,219 new locations, with 460 new stores in China and 631 overseas. In the U.S., MINISO opened 154 new stores, bringing its total to 275, while its U.K. market saw a 60% increase in store count and a 30% rise in same-store sales.
MIXUE Seeks International Talent for Global Growth
MIXUE Group, a global bubble tea leader, is hiring for its international division, seeking candidates with foreign language skills or international study experience, including German. The role is based in Zhengzhou or an overseas location. The company currently operates around 4,800 stores overseas by September 2024 and continues its global expansion, focusing on Southeast Asia and the U.S., with Europe as a secondary target. However, MIXUE has yet to open stores in the U.S. or Europe.
XAG's Overseas Revenue Set to Outpace Domestic Sales by 2027
XAG Co., Ltd. has seen rapid growth in its international business, with overseas revenue accounting for 30% to 35% of total earnings in 2024. Founder Peng Bin predicts that by 2027, international sales could surpass domestic revenue. Founded in 2007, XAG specializes in drone development and agricultural automation solutions, using robotics and AI to empower farmers and improve agricultural efficiency.