Shopping: 30% of consumers to stop buying from Shein and Temu if prices rise
- InsightTrendsWorld
- 1 day ago
- 8 min read
Why it is the topic trending:
Impact of Potential Tariffs on Popular Online Retailers:Â The article discusses how potential tariffs on goods from China could affect major online retailers like Shein and Temu, which are known for their low prices, making it a significant topic for consumers and the e-commerce industry.
Consumer Price Sensitivity:Â The report highlights the price sensitivity of consumers who shop on these platforms, indicating a potential shift in shopping habits if prices increase.
Decline in Spending Even Before Tariffs:Â The article points out that consumer spending and engagement on Shein and Temu were already decreasing year-over-year, suggesting underlying issues beyond just potential tariffs.
Comparison of Consumer Trust:Â The report compares consumer trust in Temu versus Amazon, providing insights into the perceived reliability of these platforms.
Overview:Â The article discusses a report from Omnisend indicating that nearly 30% of customers will reduce or stop shopping at China-based online marketplaces like Shein, Temu, and AliExpress if prices rise. This potential price increase could be triggered by President Trump's plan to nix the de minimis exemption for goods from China and Hong Kong, as well as increased tariffs. However, the report also reveals that customer spending and engagement on these platforms were already declining between 2024 and 2025, suggesting that factors like long shipping times and inconsistent product quality are also affecting consumer behavior.
Detailed findings:
Nearly 30% of customers will reduce or stop shopping at Shein, Temu, and AliExpress if prices rise.
Consumers have already reduced year-over-year spending on these platforms between 2024 and 2025.
Daily shopping fell 17% on Temu, 41% on Shein, and 38% on AliExpress.
Weekly shopping on Shein decreased by 8%, monthly by 11%, and yearly by 8%.
Weekly shopping on AliExpress fell by 4%, monthly by 19%, and yearly by 12%.
Weekly shopping on Temu fell by 19%, monthly by 18%, and yearly by 7%.
Issues like long shipping times, inconsistent product quality, and waning discretionary spending are contributing to decreased engagement.
88% of respondents trust Amazon more than Temu, while only 4.9% trust Temu more.
Key takeaway:Â Potential tariff increases due to changes in trade policies could significantly impact the popularity of fast-fashion online retailers like Shein and Temu, as a substantial portion of their customer base is price-sensitive and may stop shopping on these platforms if prices rise, a trend that is already being observed with declining consumer engagement.
Main trend:Â The Precarity of Ultra-Fast Fashion Business Models Under Shifting Trade Policies and Consumer Trust
Description of the trend (please name it): The Discount Dependence Dilemma. This trend describes the vulnerability of ultra-fast fashion online retailers like Shein and Temu, whose business models are heavily reliant on offering extremely low prices, to changes in trade policies (like increased tariffs) that could force price hikes. This dependence on deep discounts is further complicated by emerging issues of consumer trust, product quality, and shipping times, potentially leading to decreased consumer loyalty and engagement even before significant price changes occur.
What is consumer motivation:Â Consumers are initially motivated to shop on platforms like Shein and Temu primarily by the allure of very low prices and a wide variety of trendy items. However, as the novelty wears off, factors like product quality, shipping times, and trust in the retailer become more important in maintaining their loyalty.
What is driving trend:
Potential Elimination of De Minimis Exemption:Â This policy change would remove the duty-free status for many low-priced goods from China and Hong Kong, directly increasing costs for these retailers.
Increased Tariffs on China:Â Higher tariffs would further inflate the cost of imported goods, making it difficult for these platforms to maintain their ultra-low pricing strategy.
Erosion of Initial Buzz:Â The initial excitement and viral marketing surrounding newer platforms like Temu may be fading as consumers experience the realities of shopping on these sites.
Concerns About Product Quality and Shipping:Â Dissatisfaction with the quality of goods or long delivery times can lead consumers to shop elsewhere, even if prices are low.
Competition from More Trusted Platforms:Â Established e-commerce giants like Amazon still hold a significant trust advantage with consumers.
What is motivation beyond the trend:Â Beyond price, consumers might be seeking a balance between affordability and reliability. While low prices are attractive, negative experiences with quality or shipping can outweigh those initial savings, leading them to prioritize platforms they trust more.
Description of consumers article is referring to (what is their age?, what is their gender? What is their income? What is their lifestyle): The article refers to consumers who shop on Shein, Temu, and AliExpress, which are known for appealing to a broad demographic seeking affordable and trendy clothing and goods. While not explicitly stated, these platforms are particularly popular among younger consumers, including Gen Z and Millennials, who are active on social media and price-conscious. The reliance on ultra-low prices suggests a significant portion of these shoppers may be budget-conscious individuals across various income levels. Their lifestyle likely involves online shopping for frequently updated fashion at very low costs.
Conclusions:Â Ultra-fast fashion retailers like Shein and Temu are facing a precarious situation as potential tariff increases threaten their core value proposition of extremely low prices. Coupled with existing issues around consumer trust and product quality, these platforms may see a significant drop in their customer base if prices rise, highlighting the risks of a business model heavily dependent on deep discounts and international trade policies.
Implications for brands:
Shein, Temu, AliExpress:Â Need to strategize for potential price increases and focus on improving customer trust, product quality, and shipping times to retain customers. They might need to explore diversifying their supply chains to mitigate tariff risks.
Other E-commerce Retailers:Â May see an opportunity to attract price-sensitive consumers who are abandoning Shein and Temu due to potential price increases.
Marketing Platforms:Â Might observe shifts in advertising spending as these retailers adapt to the changing landscape.
Implication for society:Â This could lead to a broader discussion about the sustainability of ultra-fast fashion and the true cost of extremely cheap goods, potentially prompting consumers to consider factors beyond just price.
Implications for consumers:Â Consumers who rely on the ultra-low prices of these platforms may face higher costs for similar goods or need to find alternative retailers. They might also need to weigh the savings against potential issues with product quality and shipping.
Implication for Future:Â The future of ultra-fast fashion platforms under evolving trade policies is uncertain. They may need to adapt their business models, potentially focusing more on quality and reliability, or risk losing a significant portion of their customer base if prices are forced to rise substantially.
Consumer Trend (name, detailed description):Â The Price-Driven Fickle Shopper:Â This trend describes consumers, particularly in the online retail space, who are primarily motivated by the lowest possible prices and are highly likely to switch retailers if they find a better deal elsewhere, exhibiting low brand loyalty in the absence of consistent deep discounts.
Consumer Sub Trend (name, detailed description):Â The Balancing Act of Price vs. Trust:Â Consumers are constantly weighing the allure of low prices against their trust in the retailer, product quality, and overall shopping experience, and may be willing to pay slightly more for a more reliable experience.
Big Social Trend (name, detailed description):Â The Geopolitical Impact on Consumer Goods:Â International trade policies and tariffs are increasingly influencing the prices and availability of consumer goods, forcing both retailers and shoppers to adapt.
Worldwide Social Trend (name, detailed description):Â The rise of global online marketplaces and the interconnectedness of international trade mean that policy changes in one region can have significant ripple effects on consumers and businesses worldwide.
Social Drive (name, detailed description):Â The Desire for Value and Affordability:Â Consumers are generally driven by the desire to get the most for their money, but this must be balanced with other factors like quality and trust.
Learnings for brands to use in 2025 (bullets, detailed description):
Understand Your Price Sensitivity Threshold:Â Know how much price fluctuation your customer base will tolerate.
Build Trust Beyond Low Prices:Â Focus on product quality, customer service, and reliable shipping to foster loyalty.
Monitor Trade Policy Changes:Â Stay informed about potential policy changes that could impact your supply chain and pricing.
Strategy Recommendations for brands to follow in 2025 (bullets, detail description):
Shein, Temu, AliExpress: Explore diversifying supply chains outside of China to mitigate tariff risks. Invest in improving product quality and shipping times. Consider loyalty programs to retain customers beyond just low prices.
Other Retailers:Â Highlight your strengths in product quality, customer service, and shipping reliability as a differentiator against ultra-fast fashion platforms, especially if their prices increase.
Final sentence (key concept) describing main trend from article:Â The report reveals the precarious position of ultra-fast fashion giants like Shein and Temu, whose deep discount model makes them highly vulnerable to price increases driven by changing trade policies and already declining consumer engagement due to trust and quality concerns.
What brands & companies should do in 2025 to benefit from trend and how to do it:Â In 2025, ultra-fast fashion retailers should focus on building resilience beyond just low prices by:
Actively working to diversify their supply chains to reduce dependence on regions subject to high tariffs.
Investing in measures to improve product quality and customer service to foster greater trust and loyalty among their customer base.
Exploring alternative pricing strategies that balance affordability with sustainability and customer retention, potentially moving away from solely relying on ultra-low prices.
Final note:
Core Trend:Â The Discount Dependence Dilemma:Â Vulnerability of ultra-fast fashion retailers to price increases and consumer trust issues.
Core Strategy:Â Diversify Supply Chains and Build Trust Beyond Price:Â Moving towards a more sustainable business model.
Core Industry Trend:Â Impact of Geopolitics on E-commerce Pricing and Consumer Behavior:Â Trade policies significantly affecting online retail.
Core Consumer Motivation:Â Balancing Affordability with Quality and Trust:Â Consumers weighing low prices against reliability and product satisfaction.
Final Conclusion:Â The report from Omnisend paints a concerning picture for ultra-fast fashion retailers in 2025, highlighting the unsustainability of a business model overly reliant on deep discounts and potentially vulnerable to external economic and political factors. These companies will need to adapt to build stronger foundations with their customers beyond just offering the lowest prices.
Core Trend Detailed: The Discount Dependence Dilemma
Description:Â The Discount Dependence Dilemma trend describes the vulnerability of ultra-fast fashion online retailers like Shein and Temu, whose business models are heavily reliant on offering extremely low prices, to changes in trade policies (like increased tariffs) that could force price hikes. This dependence on deep discounts is further complicated by emerging issues of consumer trust, product quality, and shipping times, potentially leading to decreased consumer loyalty and engagement even before significant price changes occur.
Key Characteristics of the Trend (summary):Â Ultra-fast fashion retailers heavily rely on low prices, making them vulnerable to tariff increases and consumer dissatisfaction with quality and shipping.
Market and Cultural Signals Supporting the Trend (summary):Â The Omnisend report indicating that 30% of consumers will stop shopping at these platforms if prices rise, along with the data showing a decrease in year-over-year spending and trust compared to Amazon, supports this trend.
How the Trend Is Changing Consumer Behavior (summary):Â Consumers are becoming more hesitant to shop on ultra-fast fashion platforms due to concerns about quality, shipping times, and the potential for price increases due to tariffs.
Implications Across the Ecosystem (For Brands and CPGs, For Retailers, For Consumers, summary):
For Brands and CPGs:Â Ultra-fast fashion retailers need to diversify supply chains and improve customer trust. Other retailers might gain customers seeking more reliable options.
For Retailers:Â Ultra-fast fashion platforms face shrinking margins and potential customer loss.
For Consumers:Â May face higher prices on these platforms or need to seek alternatives, potentially considering factors beyond just price.
Strategic Forecast:Â The future of ultra-fast fashion platforms under evolving trade policies is uncertain. They may need to adapt their business models, potentially focusing more on quality and reliability, or risk losing a significant portion of their customer base if prices are forced to rise substantially.
Final Thought:Â The report reveals the precarious position of ultra-fast fashion giants like Shein and Temu, whose deep discount model makes them highly vulnerable to price increases driven by changing trade policies and already declining consumer engagement due to trust and quality concerns.
