Temu vs. Shein: Are They The Same Company?

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Find out what these budget-friendly shops do and don’t have in common
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Chinese-owned companies Temu and Shein seem to be mainstays in an e-commerce world that was once dominated by Amazon. Believe it or not, though, they don’t belong to the same corporation. In this article, we’ll take a closer look at how and why Temu and Shein are different companies, as well as what they have in common.

Things You Should Know

  • Temu and Shein have different inventories. Temu has a wide variety of product listings, while Shein focuses more on clothing.
  • Temu and Shein are different companies. Temu is owned by PDD Holdings Inc., and Shein is owned by Chris Xu.
  • Temu and Shein both sell items at very low prices thanks to a tax break in American trading law.
Section 1 of 4:

Is Temu similar to Shein?

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  1. Temu provides a wider range of items than Shein, and their platform isn’t as clothing-focused as Shein’s. Shein, on the other hand, has a reputation as more of a “fast-fashion” brand. Their business model revolves around actively collecting customer feedback and making small batches of items based on the current interests of their shoppers. [1]
    • Temu serves more as a connection between various manufacturers and consumers to sell a wide variety of products, while Shein uses intentional marketing research to manufacture what’s trending.
    • Both companies use a direct-to-shopper method that ships packages directly from factories to customers. [2]
    • While Shein sells more than just clothing, Temu is more well-known for its diverse inventory.
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Section 2 of 4:

Are Temu and Shein the same company?

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  1. Despite offering similar products at similar prices, they’re owned and operated by different corporations. Temu, although based in America, belongs to Chinese company PDD Holdings, Inc. [3] Shein, on the other hand, is owned by Chinese billionaire Chris Xu. [4]
Section 3 of 4:

Similarities of Temu and Shein

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  1. Temu and Shein both take advantage of an American tax law allowing them to import inexpensive goods without tax. This allows both companies to sell at ridiculously low prices—by pricing things low, they’re avoiding the import tax that more expensive packages would require. [5]
    • The law in question is the Tariff Act of 1930. A section of this law (known as the “de minimis value”) states that any package worth $800 or less won’t be taxed. [6]
  2. Temu is well-known for selling everything from clothing and laundry supplies to small appliances and fidget toys. While Shein is best known for their wide array of clothing, they also sell a variety of items, including household supplies, cosmetics, luggage, and more.
  3. Temu and Shein are both suspected to be either utilizing or enabling forced labor. Forced labor is a serious human rights issue within China, particularly among the Uyghur people who live in the northwest Xinjiang area of the country. [7] In June 2023, members of US Congress released a specific report highlighting their ethical suspicions against Temu and Shein. [8]
    • Shein is a “fast fashion” company. [9] Fast fashion is an industry that requires the fast production and shipment of clothes, with the expectation that these clothes won’t last very long. The constant supply and demand of this industry has an extremely negative impact on the environment. [10]
    • Pinduoduo, Temu’s sister company, was once under scrutiny for selling counterfeit goods. [11]
    • Shein has been accused of selling clothes contaminated with dangerous substances, like lead. [12]
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Section 4 of 4:

Key Takeaways

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  1. At the end of the day, it’s important to shop at stores that best fit your budget. Temu and Shein have fielded their fair share of controversy, though, so it could be worth cross-checking your potential purchases on other retail sites before hitting “Add to Cart.”


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      References

      1. ↑ https://www.sheingroup.com/our-business/our-business-model/
      2. ↑ https://www.americanmanufacturing.org/blog/why-you-should-be-leery-of-shopping-app-temu/
      3. ↑ https://www.forbes.com/sites/conormurray/2023/02/17/what-to-know-about-temu-new-chinese-owned-fast-fashion-app-draws-comparisons-good-and-bad-to-shein
      4. ↑ https://www.reuters.com/business/retail-consumer/how-chinas-shein-became-fast-fashion-giant-2023-11-28/
      5. ↑ https://www.uscc.gov/sites/default/files/2023-04/Issue_Brief-Shein_Temu_and_Chinese_E-Commerce.pdf
      6. ↑ https://www.congress.gov/bill/114th-congress/house-bill/644/text
      7. ↑ https://www.americanmanufacturing.org/blog/why-you-should-be-leery-of-shopping-app-temu/
      8. ↑ https://apnews.com/article/temu-shein-forced-labor-china-de7b5398c76fda58404abc6ec5684972
      9. ↑ https://forbes.com/sites/conormurray/2023/02/17/what-to-know-about-temu-new-chinese-owned-fast-fashion-app-draws-comparisons-good-and-bad-to-shein/?sh=3e20b4403f14
      1. ↑ https://www.ethicalconsumer.org/fashion-clothing/what-fast-fashion-why-it-problem
      2. ↑ https://www.forbes.com/sites/conormurray/2023/02/17/what-to-know-about-temu-new-chinese-owned-fast-fashion-app-draws-comparisons-good-and-bad-to-shein/?sh=3e20b4403f14
      3. ↑ https://www.greenpeace.org/international/press-release/56979/taking-the-shine-off-shein-hazardous-chemicals-in-shein-products-break-eu-regulations-new-report-finds/

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