Week #22: Temu's U.S. Sales: 20% Now Sourced from Local Warehouses | SHEIN Extensively Begins Production in Brazil
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
Temu's U.S. Sales: 20% Now Sourced from Local Warehouses
DJI Drone Ban Not Included in US Senate's Version of Defense Act
TikTok Shop Launches JIT Model to Enhance Merchant Flexibility and Efficiency
Alibaba's Taobao Launches New Plan to Boost International Growth
Shenzhen Leads Nation with $302.43 Billion Trade Value in H1 2024
SHEIN Extensively Begins Production in Brazil
O QQ Generates Nearly $7.37 Million in TikTok USA Sales Over Three Months
Manycore Tech Said to File for $200 Million Hong Kong IPO This Year
TikTok Tests Local Service in Southeast Asia
Temu Becomes Brazil's Most Downloaded Shopping App
Temu's U.S. Sales: 20% Now Sourced from Local Warehouses
20% of Temu's U.S. sales now originate from local warehouses within the United States, a significant shift from 0% at the beginning of the year. This rapid transformation follows Temu's recent initiative to onboard local sellers starting in March. Research by Marketplace Pulse indicates that local sellers constitute the majority of new additions to Temu's platform.
Temu is diversifying its supply chain away from direct-from-China shipments, thereby reducing its reliance on duty-free imports enabled by the de minimis threshold. Although the new local sellers are predominantly Chinese businesses, they now import goods wholesale and store them in U.S. warehouses. This shift allows Temu to offer larger items, such as furniture and e-bikes. Marketplace Pulse reports that Temu recently onboarded its first thousand U.S.-based sellers, who are primarily Chinese companies incorporated in the U.S.
DJI Drone Ban Not Included in US Senate's Version of Defense Act
The United States Senate Armed Services Committee has completed its revised version of the 2025 National Defense Authorization Act (NDAA), which, unlike the version passed by the House of Representatives last month, does not include a ban on DJI drones. While this development has led to speculation that a ban on DJI drones is unlikely, insiders caution that future uncertainties remain.
DJI drones, known for their superior performance, hold a significant position in the U.S. market, capturing nearly 80% of the consumer drone market and around 70% globally, with sales reaching $4.14 billion in 2022. They are also extensively used in emergency services and law enforcement, holding a 92% share in U.S. emergency responses, according to AUVSI.
A 2020 study by Bard College found that DJI drones accounted for 90% of those used by government agencies across all 50 states. Additionally, 80% of drones used by U.S. farmers for pesticide application are DJI. Given the critical role DJI drones play, any potential ban would require careful consideration.
TikTok Shop Launches JIT Model to Enhance Merchant Flexibility and Efficiency
TikTok Shop has officially introduced its JIT (Just-In-Time) model, enabling eligible merchants to dispatch goods to TikTok Shop's warehouses after receiving orders rather than pre-stocking.
Traditionally, merchants are often required to forecast market demand and maintain stockup, tying up funds and risking overstock or outdated products. The JIT model facilitates production and distribution in response to real-time orders, mitigating inventory issues and enhancing cash flow.
The JIT model also enables merchants to quickly test new products and adapt production based on market feedback. For goods with unstable demands, sellers can opt for small, batch production, easing stock stress. And high-value items can be stocked as needed, relieving financial pressure. It also helps manage time-sensitive goods, reducing seasonal waste and loss.
Alibaba's Taobao Launches New Plan to Boost International Growth
Alibaba's domestic e-commerce platform, Taobao's new "Global Free Shipping Plan for Apparel" offers substantial subsidies on international shipping to help merchants grow abroad by providing free shipping to overseas buyers. Initially targeting regions such as Singapore, Malaysia, South Korea, Hong Kong, Macau, and Taiwan, the initiative will extend to Australia by the end of the year, with plans to cover global regions.
Merchants can sell to a worldwide audience through their existing Taobao and Tmall stores without extra setup or changes. They retain full pricing and inventory rights and are relieved of cross-border logistics concerns. Upon receiving international orders, merchants simply dispatch goods to a domestic warehouse for international delivery, cutting down on costs and boosting their presence in foreign markets.
Shenzhen Leads Nation with $302.43 Billion Trade Value in H1 2024
Shenzhen Customs reported that the city's import and export value hit $302.43 billion in the first half of the year, up 31.7% YoY, ranking first nationwide. This represented 10.4% of the national total and 50.4% of Guangdong Province's total, with increases of 2% and 6.9%, respectively. Exports amounted to $193.83 billion, up 34.9% and leading the nation, while imports were $108.94 billion, up 26.5%, ranking third. Shenzhen has maintained a trade volume exceeding $137.47 billion for four consecutive quarters and has achieved positive growth for nine consecutive quarters.
Data shows that Shenzhen exported $130.46 billion worth of electromechanical products in the first half of the year, a 21.4% increase, accounting for 67.4% of total exports. Traditional goods like phones, computers, and home appliances still play a major role, with electronic component exports rising by 29.3%. Electric vehicle and photovoltaic product exports saw remarkable growth of 51.7% and 81.6%, respectively.
Shenzhen's electronic information manufacturing industry made up about half of the city's total trade value. As international market demand recovers, the trade value of Shenzhen's electronic products and parts has further increased. Additionally, the export scale of Shenzhen's technology-intensive products has grown significantly, with manufacturing exports climbing up the value chain.
SHEIN Extensively Begins Production in Brazil
SHEIN has begun full-scale production in Brazil, investing 750 million reais($13.46 million) since April 2023 to work with local factories on 100% Brazilian products.
The company underscores its commitment to fostering local businesses and partnerships through local operations, thereby contributing to the economic development of the region. Despite certain challenges, such as the slow progress in its partnership with Companhia de Tecidos Norte de Minas (Coteminas), SHEIN remains steadfast in its goal to ship 85% of its products made in Brazil around Latin America by 2026.
Currently, 55% of SHEIN's sales in Brazil come from local operations, with plans to extend its reach to additional states in 2024, including Rio de Janeiro, Minas Gerais, Santa Catarina, Paraná, and Rio Grande do Sul. Through its on-demand business model, SHEIN is enhancing innovation and efficiency within Brazil's textile industry.
O QQ Generates Nearly $7.37 Million in TikTok USA Sales Over Three Months
O QQ, a Hangzhou-based brand, achieved sales of 317,600 items and a GMV of $7.37 million in the past three months, according to data from Tabcut. The brand is dedicated to crafting fashion for modern activewear, targeting young females. Their design philosophy highlights simplicity and minimalism, offering practical, high-quality, and sustainable fashion that blends style and function.
The brand's rapid emergence is significantly supported by its influencer marketing and social media strategy. Over the past three months, O QQ engaged with 5,413 influencers and conducted 10,600 live streaming sessions on TikTok. Although TikTok serves as a primary platform with the official account @oqqsports amassing 198,400 followers, O QQ has also established a presence on Facebook, Instagram, and YouTube.
Allied Market Research reports that the global yoga apparel market was valued at $33.68 billion in 2020, with projections to reach $70.29 billion by 2030, reflecting an annual compound growth rate of 7.8%.
Manycore Tech Said to File for $200 Million Hong Kong IPO This Year
Manycore Tech Inc., a 3D design software company, plans to file for an initial public offering (IPO) in Hong Kong as early as this year, aiming to raise up to $200 million. Based in Hangzhou, China, Manycore has enlisted CCB International Holdings Ltd. and JPMorgan Chase & Co. for the offering. The details, including timing and size, are still under discussion and may change.
Initially, Manycore pursued a U.S. listing in 2021 but withdrew after Didi Global Inc.'s troubled debut in New York. This move aligns with other Chinese firms choosing Hong Kong for their IPOs. Founded in 2011, the company runs Kujiale design software in China and Coohom for international markets.
Being cloud-native, mobile-friendly and smart, Manycore pioneers the interior design, decoration and construction industry for residential, commercial and industrial spaces. The company integrate and deliver computer-aided design and building information modeling capabilities on a SaaS model, empowering businesses to deliver superior user experience and achieve operational excellence.
TikTok Tests Local Service in Southeast Asia
TikTok has initiated its Local Service in Southeast Asia, with pilot tests underway in Indonesia and Thailand, primarily targeting restaurants. Thai TikTok accounts are encouraging businesses to join "TTLS" (TikTok Local Service), presenting it as an opportunity for growth.
In 2022, TikTok ventured into local lifestyle domains by experimenting with a "Nearby" feature to present local content to users. As reported by The Verge, TikTok's geographic location pages have expanded to include categories such as dining, accommodations, and retail, resembling established platforms like Yelp.
With the mission of "lnspiring New Life and Helping Good Business", TikTok Local Service is committed to becoming the most trusted local service platform for users and partners. In Local Service, through POl, Video, LIVE, Search, and other various products, services and roles related to life are creatively connected, making the daily life experience richer, more unique and more innovative.
At the same time, Local Service creates an inclusive and fair healthy business environment, helping merchants, service providers, creators and other roles to continuously create revenue and improve efficiency
Temu Becomes Brazil's Most Downloaded Shopping App
Temu launched in Brazil in June and quickly became the most downloaded shopping app, outpacing platforms like MercadoLibre, Amazon, and Magalu. App Magic data shows Brazil is Temu's second-largest market in the past 30 days with over 5 million downloads, just behind the U.S.
"Our initial focus is to understand Brazilian consumer preferences to refine our offerings. Our direct-from-factory model eliminates inefficiencies in the traditional supply chain, relying on exclusive suppliers to expedite delivery." said Temu. Temu connects buyers with third-party sellers, many of whom are also manufacturers. This model reduces costs and streamlines product management, offering quality products at competitive prices.
In Brazil, Temu offers a wide range of products, including clothing, pet supplies, home decor, and tools. It also operates in several Latin American countries, including Chile, Colombia, Mexico, Peru, the Dominican Republic, and Uruguay.