Clothes retailer Shein’s filing confidentially for a U.S. IPO has introduced low-cost retailers from the Individuals’s Republic of China to the forefront of each customers’ and regulators’ minds. And Temu, one other China-based low cost retailer that’s typically talked about in the identical breath as Shein, is wanting notably attention-grabbing right now.
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Why? The corporate is anticipated to report income of greater than $16 billion this yr, according to Reuters — a merely huge determine. What’s extra, its dad or mum firm, Chinese language e-commerce big Pinduoduo (PDD), lately overtook Alibaba in market worth, dethroning an organization that has lengthy been thought of to be one in all China’s main enterprise lights. Temu is rising shortly and is spurring a reshuffling of the pecking order in Chinese language tech alongside the way in which.
For a little bit of context: Each Shein and Temu try to look extra like they’re worldwide companies than Chinese language corporations. Shein has moved its headquarters to Singapore, and Temu was actually founded in Boston, Massachusetts.
The Shein IPO is the plain main story, given its imminence, however Temu is price a re-evaluation in the mean time, so we’re going to just do that right now. To work!
