The 3 Key Differences Between U.S. And Chinese Markets And What It Means For Ecommerce: Insights...

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Chinese-owned shopping platforms Shein and Temu have surged in popularity in recent years, quickly catching up to U.S. retail giants like Amazon, Walmart, and Target. Their focus on fast fashion and influencer marketing has pulled in millions of users, becoming the most downloaded apps of 2023 .

But how exactly did these newcomers manage to hold their own against the likes of Amazon and Walmart? What did they do differently that helped them succeed not just in China but also in the U.S.? Lesley Gao , an expert in micro-mobility and ecommerce, points out three key differences between U.S. and China ecommerce that these platforms leveraged to gain an edge.

In China, there's this idea of a "super app" that combines multiple services into one platform. For example, popular super apps like WeChat, Alipay, and Meituan allow you to chat, shop, pay your bills, book appointments and more — without ever needing to switch apps.

Super apps also double as customer relationship management (CRM) tools, where sellers can create dedicated group chats to engage with customers, promote their products and take orders. This direct, real-time communication with customers builds on the concept of a "private community," where customers get prompt updates, ask questions and feel more connected to the brand. This creates numerous touchpoints for user interaction, increasing the likelihood of user retention and repeat business.

In China, it's a whole different game. Influencers, or "key opinion leaders" (KOLs) as they are called, instead focus on direct sales to their communities. KOLs have their own stores within super apps like WeChat that allow them to earn directly from product sales without intermediaries. This setup gives them a steadier income and better earning potential without having to worry about likes and shares.

China's position as a global production hub gives it a huge advantage in ecommerce. With supply chains right at their doorstep, Chinese-based platforms offer a wide variety of products at lower prices and with faster shipping times. They can quickly adapt to market demands and get products out to consumers in no time.