We found light at the end of the tunnel, yet it’s gone in no time. E-commerce brands like Shein and temu, which had been well liked by customers due to excessively low cost and broad range of products, said that they will raise their price soon, a step that was followed by president Donald Trump implementing a 145% tariff on imports from China.
For years, these China owned brands had been sprawling all over the United States, due to its capitalization of budget friendly yet fashionable services targeting towards thrifty customers, thanks to a little loophole called “de minimis exemption” (permission for tax-free entry of certain products that values less than the threshold of $800). However, for the test of time, how long would such “de minimis exemption” be friendly to the customers?
Mere sneakers from such sites which used to be $10 would cost $24.50, which undoubtedly would result in customer dissatisfaction at a higher rate, making it safe to say that Shein and Temu would be considered a ‘luxury’ brand, and not some ‘wallet friendly’ retail that provides people with fashionable clothing. For such brands, as the price increases, challenges would be faced for justifying the higher cost to the customers while maintaining proper quality standards.
In a world market where prices have been increasing steadily since Covid, it appears that Temu and Shein will be the next dominos to fall in that price trend.