Shein’s US sales fell 16 per cent to 41 per cent for five days from February 5 while PDD Holdings’ Temu notched a fall of as much as 32 per cent during the period, according to Bloomberg Second Measure, which analyses credit and debit card data.
While the drop so far is only as big as the traditional post-Christmas fall-off in spending on these platforms, it reversed the growth trend seen in late January, and has lasted through February 9, the latest date for which data is available.
The pullback in spending began a day after Trump said that parcels under US$800 from China would no longer be exempt from customs duties, a category that covers the bulk of Shein’s and Temu’s deliveries to US consumers. While the revocation has yet to be implemented, shoppers may be put off by fears that they’ll be on the hook for extra fees.
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Other factors like seasonality, market competition and macroeconomic changes may also be weighing on sales.