Shein has been constantly expanding its e-commerce distribution network, particularly in Brazil and Mexico. We also met Shein vendors who have established companies in Morocco and Turkey.
One platform even encouraged its Taiwanese suppliers to move their manufacturing to Vietnam and began developing logistics capabilities that following the chaos in February. More than 10,000 parcels from a third country have been delivered to the US on another system each time.
However, all was taken aback by the scope and common coverage of US tariffs. It is no longer safer to ship from a second state or even move the supply chain.
WHAT’S NEXT FOR SHEIN, TEMU?
Whatever shock is thrown at it, or whatever profound change that has a lasting impact, the global supply chain may often find a way to adapt.
Consumers will eventually adapt as well if large costs become permanent.
Experts in logistics and economists warn that Mr. Trump’s tariffs will quickly cause US consumers to pay higher prices and have their shelves be empty. The rate increase will be uniform, even for online list because the supply chain for many of the categories is tightly integrated or concentrated in China.
Traditional American stores like Walmart and Chinese e-commerce systems will have limited space to squeeze supplier margins more. Price increases may be unavoidable. Since February, Shein and Temu have already experienced a decline in US profits.
There are numerous historic examples of large communities or entire cultures living in enclosed, financially inadequate systems who find ways to use their position as “normal” to justify their existence. We hope we won’t have to travel it.