“Are SHEIN and TEMU about to shut down in the U.S.?”
This is a question we often hear from clients whenever we suggest SHEIN or TEMU as potential new sales channels. Many brands have seen headlines about these platforms facing pressure under the Trump administration’s aggressive tariff policies, and naturally, they are concerned. But ironically, we believe this may be exactly the right time to consider entering these marketplaces.
Amazon is already a red ocean.
Nearly every brand treats Amazon as a must-have channel. Competition is intense, advertising costs continue to rise, and standing out becomes more difficult every day.
TikTok Shop, SHEIN, and TEMU, on the other hand, are still closer to a blue ocean.
At a time when many brands are hesitating because of tariff uncertainty, those that move earlier are gaining the advantage of early entry.
These marketplaces originally grew by connecting Chinese manufacturers directly with U.S. consumers. That model became their strength. However, as tariff barriers have made that structure more difficult to maintain, these platforms have been forced to adapt. And in that transition, new opportunities are emerging for Korean brands, including K-Beauty companies.
First, these platforms are increasing their use of U.S.-based warehousing and domestic fulfillment.
To reduce dependence on direct shipping from China, they are continuing to expand local logistics infrastructure within the United States. This creates an opportunity for Korean brands to leverage local fulfillment models and offer faster delivery to American consumers.
Second, they are broadening their product mix.
What began largely as a low-price product ecosystem is gradually expanding to include more premium and brand-driven offerings. In order to attract new sellers and differentiated brands, these platforms are also providing more aggressive incentives, such as reduced commission structures, marketing support, and onboarding benefits.
Third, they are expanding beyond the U.S. market.
Their growth strategy is no longer limited to North America. Many of these platforms are actively expanding into Europe, Latin America, and other global markets. For brands, this means that marketplace entry can potentially become a gateway to multiple regions, not just one.
Brands that recognize this shift early are already moving.
Some K-Beauty companies have begun entering platforms like SHEIN and TEMU and are seeing the benefit of getting in ahead of the crowd. In fact, one of our clients was able to generate sales on SHEIN equal to 70% of its Amazon revenue within just three months of launch, and that share continues to grow.
Major growth in retail often begins with finding the next channel before everyone else does. For brands planning to expand in the U.S., platforms such as SHEIN and TEMU deserve serious consideration today, not later.
As a key logistics partner for SHEIN, CGETC supports brands with the operational work required for SHEIN marketplace entry, helping them build the foundation needed to move quickly and effectively in this evolving environment.