SHEIN, Temu and other platforms are expected to become the dark horse of the peak season! Won $160 billion in sales

The holiday season is an extremely important time of the year for both sellers and consumers. Recently, Salesforce conducted a study on this year's holiday season and believes that Chinese e-commerce platforms will dominate this year's holiday season.

Price is an important factor that influences consumers' shopping on weekdays, and Salesforce believes that this factor will become even more important during this year's holiday season. Therefore , Salesforce predicts that Chinese platforms such as SHEIN and Temu will occupy a more important market share in Western consumers' shopping.

According to Salesforce , between November 1 and December 31, 63% of consumers said they planned to shop through the Chinese e-commerce platforms mentioned in the survey, including SHEIN, Temu, Cider, TikTok and AliExpress . Salesforce expects that Chinese platforms will grab $160 billion in share during this year's holiday season , accounting for 21% of the total market , and price is an important dominant factor - consumers will continue to pursue " value " under inflationary pressure .

Two-thirds of consumers surveyed said they had shopped on these Chinese platforms in the past six months. More than 40% of consumers had ordered on Temu, while SHEIN was more popular among Generation Z, with about 50% of Generation Z having shopped on it.

Caila Schwartz, director of consumer insights and strategy at Salesforce, said that consumers are increasingly inclined towards " value " , and Chinese platforms are catering to this trend. However, Rob Garf, vice president and general manager of retail at Salesforce , also mentioned that Chinese e-commerce platforms will not steal too much of the resale market's limelight.

Caila Schwartz also pointed out that according to Salesforce 's survey results, 37% of shoppers are using credit cards more than a year ago ; 32% of consumers use "buy now, pay later" (BNPL) services such as Klarna and Afterpay , which is also higher than before.

In addition, Salesforce 's survey also shows that intermediate logistics will also face greater expenses . It is estimated that brands and retailers will pay an additional $197 billion in intermediate logistics, an increase of 97% over last year. Caila Schwartz believes that the last mile delivery is the main factor in the increase in costs.

Salesforce advises brands and retailers not to pass on logistics costs to consumers because this year's holiday season will be "value is king . " Salesforce data shows that 45% of consumers prioritize free shipping when shopping ; the proportion of shoppers willing to wait longer for free shipping is also increasing . At the same time, for time-pressed shoppers, BOPUS (buy online, pick up in store) transactions are also increasing when retailers and brands do not offer free shipping .

It is worth mentioning that Salesforce 's survey also shows that 53 % of consumers are interested in using AI technology to inspire gift purchases . Especially in the context of "40% of consumers plan to reduce shopping expenses and 47% of consumers plan to keep their expenses the same", platforms and brands that have already integrated this technology may have more advantages.

Temu

SHEIN

Peak Season