Dive Brief:
- As shoppers hunt for bargains this holiday season, over a third (36%) are turning to Chinese marketplaces, according to a survey of 1,000 American consumers by marketing tech firm Omnisend.
- Nearly half (48%) of Gen Z consumers are shopping at Chinese marketplaces.
- Temu is the overall preferred Chinese marketplace for 23% of U.S. shoppers, followed by Shein (18.3%), TikTok Shop (11.9%) and AliExpress (7.3%), the survey found.
Dive Insight:
Amazon, TikTok Shop, Temu and Shein are in fierce competition for shoppers seeking savings. Four in ten respondents to a recent Probolsky Research survey found that Temu’s pricing was “much cheaper” than Amazon.
As a response to ultra-cheap marketplaces, Amazon recently debuted “Amazon Haul,” a section of its app and website that features a selection of products that are under $20. Most items are under $10, with some as low as $1.
“Chinese marketplaces like Temu have rapidly gained popularity among Americans over the past year,” Greg Zakowicz, Omnisend’s senior e-commerce expert, said in a statement. “Amazon has attempted to compete with the launch of Amazon Haul, but small businesses face the biggest threat. Their prices and product variety simply can’t match those offered by Temu and Shein.”
Though Temu and similar e-commerce platforms are winning shoppers over with competitive prices, U.S. consumers are hesitant to trust them. Another Omnisend survey found that 86% of American consumers said they trust Amazon, but only 6% said they trust Temu.
“While trust in these platforms remains low according to our previous research, the opportunity to save money continues to attract budget-conscious shoppers,” Zakowicz said.
Meanwhile, signaling customer overlap, 28% of Shein shoppers also bought items from TikTok Shop, according to an Earnest Analytics report released earlier this year. A quarter of Temu customers also purchased items from TikTok Shop.
With nearly 40% of Americans expecting to spend less on gifts this year, Omnisend’s survey suggests that U.S. shoppers, especially Gen Z consumers, are turning to Chinese online marketplaces to save money. While almost a quarter (23%) of Gen Z consumers said they plan to spend between $101 to $300 on gifts this year, nearly 19% of Gen Zers will spend between $51 and $100. Over 20% of millennials and 18.3% of Gen Xers also expect to spend between $101 and $300, but almost 15% of both cohorts have budgeted between $300 and $500 for their holiday spending, according to the survey.
