Shein’s Throne Challenged by Rival With One of Hottest US Apps

tech.hindustantimes.com:

It took Shein a decade to catch up to Inditex SA's Zara as the world's top fast-fashion retailer. Now, a new online upstart wants to topple Shein, at least on one measure, within a year.

Temu, a shopping platform that's owned by Chinese e-commerce heavyweight PDD Holdings Inc., set a lofty sales target for its North American business last month: report at least a single day of gross merchandise value that tops Shein's between now and Sept. 1, to mark the anniversary of its entry into the US market, according to people familiar with the matter, who asked not to be identified because they're not authorized to speak publicly.

It's the first step in Temu's broader plans to dominate the online shopping landscape. The company views Shein as its biggest rival in the near-term, and wants to surpass its dominance within the next few years, said the people. But the firm, which sells anything from clothes to kitchen supplies, is ultimately aiming to take on global behemoths Amazon. com Inc. and eBay Inc., they said.

Temu's growth is already surging and it's been one of the top-ranked apps in the US for months. The firm achieved about $500 million GMV in the US during its first five months of operation, according to data analytics firm YipitData. In January alone, sales were almost $200 million, the data show. Temu launched in Canada, its second market, in February.

Comparative data on closely held Shein's finances are difficult to obtain, but the scant details that have emerged indicate Temu's target requires its rapid pace of expansion to accelerate.

Shein already dominates the US fast-fashion market, far surpassing rivals Zara and H&M, according to YipitData. The Financial Times reported last month that Shein predicts