Chinese E-Commerce Temu and SHEIN Surpass Japanese Competitors in Japan
A recent report from Nihon Keizai Shimbun, a leading Japanese business daily, revealed that Chinese e-commerce platforms are rapidly gaining ground in Japan. Temu, an e-commerce platform offering low-price daily necessities, has garnered more than 15 million users in Japan since its entry into the market last year.
The report, compiled by data analysis company VALUES, highlighted that Temu’s success in Japan is significant as it has already reached over 50% of the average user base of the three major Japanese e-commerce platforms – “Amazon Shopping,” “Rakuten Market,” and “Yahoo! Shopping.” This rapid growth is attributed to Temu’s aggressive promotional activities and leveraging the Chinese supply chain to provide products that offer a balance between price and quality.
Operating under the Chinese company Pinduoduo Holdings, Temu’s success is reflective of the increasing frugality among Japanese consumers who are drawn to the platform’s competitive prices. Additionally, the popularity of the clothing platform SHEIN has surpassed that of Japan’s well-known clothing e-commerce platform, ZOZOTOWN, further emphasizing the growing influence of Chinese e-commerce in Japan.
This trend has raised concerns among Japanese business circles and policymakers, who fear the impact on Japan’s existing e-commerce landscape. Moreover, there are also concerns regarding the possible implications of forced labor and infringement of intellectual property rights in Xinjiang, as raised in a report by the U.S.-China Economic and Security Review Commission (USCC).
As these Chinese e-commerce platforms continue to expand their presence in Japan, the competition in the market is expected to intensify, prompting Japanese companies to be on high alert. The future of the e-commerce landscape in Japan may very well depend on how these Chinese platforms address these challenges and navigate potential regulatory and competitive obstacles.