The irruption of Shein and Temu, two Chinese colossi of the Ecommerce, is altering the balance of the mercantile balance in Latin America. Their combination of aggressive prices, optimized logistics and a good reading of consumption habits makes them a concrete threat For the reign of Free market.
The Argentine Unicorn, who until now dominated the region at ease, begins to feel the pressure of an express model -whose visits are climbing the 285 million In Latin America, exceeding 216 million Amazon– That moves with the perseverance of a warrior xiongnu.
These marketplaces They understood that the current consumer seeks an agile, visual and connected experience, with an attractive design and Viral campaigns that tune in with the digital codes of the new generations. Faced with this deployment, the more transactional proposal Free Market begins to lose shine.
To stop the client exodus, ML needs to match its urgent model. Its weakest points are: a structure increasing constantly increased commissions.
A determining factor in this equation was the Opening of the Chancay Megapuerto, in Peru. Before, importing goods from China to South America took about 45 days or more, for indirect routes, loaded with intermediaries. With the new “Pacific Hub”, times are reduced to 20 days and processes are simplified.
Therefore, ML needs to optimize your logistics network to reduce times and costs of delivery, strengthen payment market as a loyalty engine and expand concrete benefits for your vendors. Only in this way can they defend their position against the adversaries who already offer products up to 60% cheaper and shipments without scale.
In addition, its local catalog- which also adds a brief offer from abroad- does not always hold the variety and update speed that distinguishes Asians. And although by a matter of location digital marketing gears are quite oiled, it does not have the same level of Algorithmic Personalization of his rivals.
In some countries, such as Argentina and Brazilthat scaffolding becomes heavier in front of the lightness of the Chinese model, which advances without friction or cost overruns.
The expansion of Shein and Temu began in 2024, providing that the doors of the North American market began to block. Given this situation, they decided to bring their ships to Latin America. To achieve a significant impact, they invested in the region more than 49 million dollars in digital advertising.
His proposal is to link consumers with manufacturers, something that allows him to deliver articles to Very low cost – inferiors even to those achieved in the USA Amazon- especially in moda (Shein) and Household and Technology Articles (Ago).
To capture the attention of generations X, Y (Millennials) and Z, these marketplaces bet on trends such as haulspopular videos in Tiktok and Instagram where users open, show and comment on Purchase packages They performed in a specific store. This format, simple and addictive, converts each acquisition into a microspect that seduces and infects the desires of purchase.
In the case of Shein and Temu, these videos usually include: Unpacking products (unboxing), Ready tests or gadgets and rapid opinions on quality, price and style. And most importantly: Personalized discount codes.
To viralize their contents, these platforms usually hire micro influencers (1,000 to 100,000 followers) and content creators to generate trust. That is, followers perceive these recommendations as more authentic than traditional advertising.
In addition, Temu offers Free shipping In thousands of selected products and returns at no cost within 90 days. To generate greater dependence, there are lightning offers that change daily, with discounts of up to the 63% In technology, footwear, perfumes and fashion.