"Temu was launched in the US, their first market in September 2022. That is when Shein just started to gain a lot of traction. There's a lot of attention being paid to Shein. In the beginning, many people thought that Temu was a copycat of Shein because they both sold goods from China using this direct-from-China shipping model. However, I think the competition has evolved quite differently now, and Temu has done business and operational innovation that has made others, including Shein, have to catch up." - Jing Yang Fresh out of the studio, Jing Yang, the Asia Bureau Chief from The Information shares the ongoing e-commerce war between Amazon and the upstarts: Shein and Temu across the global landscape. Starting from the origins of Shein and Temu, she explained how both companies first expanded to the US enabled by Amazon. Jing Yang breaks down how Temu gains total control over its suppliers and sellers and subsequently threatens Amazon's e-commerce dominance in the US market. Last but not least, she examined the fallout from the potential US ban on Shein and Temu from US lawmakers and the possibility of Shein's IPO in the US. Episode Highlights: [0:46] QOTD [1:27] Introduction: Jing Yang, Asia Bureau Chief from The Information [2:34] The surprise of Open AI not allowing ChatGPT to be in Hong Kong and China. [5:29] You need a China mobile number to access Chinese LLMs. [6:48] Introduction to Shein and Temu, the global e-commerce upstarts originating from China. [9:59] The elusive people behind Shein and Temu. [13:29] Shein’s current performance against H&M, Zara, and Uniqlo. [18:12] How Authentic Brands (owner of Forever 21) made a partnership & investment deal with Shein in the US. [23:09] How Temu maintains control over the supply chain in China. [31:23] Comparisons between Temu and Amazon from the seller to business models. [34:51] How Amazon enabled Shein and Temu to expand into the US. [35:38] Amazon’s realization of Temu’s threat and response. [36:58] Amazon’s response to Shein and Temu’s threats in the US market. [38:56] Temu is copying Amazon in the US with a local warehouse strategy and vice versa. [42:08] How Amazon vs Temu & Shein shaped the global e-commerce landscape. [43:54] How reliant is Amazon on Chinese sellers and suppliers globally? [45:30] Why the US lawmakers are thinking about a ban on Temu. Podcast Information: Bernard Leong hosts and produces the show. Proper credits for the intro and end music: "Energetic Sports Drive" and the episode is mixed & edited in both video and audio format by G. Thomas Craig. Analyse Asia Main Site: https://analyse.asia Analyse Asia Spotify: https://open.spotify.com/show/1kkRwzRZa4JCICr2vm0vGl Analyse Asia Apple Podcasts: https://podcasts.apple.com/us/podcast/analyse-asia-with-bernard-leong/id914868245 Analyse Asia YouTube: https://www.youtube.com/@AnalyseAsia Analyse Asia LinkedIn: https://www.linkedin.com/company/analyse-asia/ Analyse Asia X (formerly known as Twitter): https://twitter.com/analyseasia Analyse Asia Threads: https://www.threads.net/@analyseasia Sign Up for Our This Week in Asia Newsletter: https://www.analyse.asia/#/portal/signup