New York, November 22 ( Reuters )- Temu.com and Shein, two new online retailers, are luring millions of window shoppers to their websites during the holiday season, but they far outperform market leader Amazon, which converts those visits into actual sales.
According to Similarweb, a webpage data tracking company, nine out of ten site visitors were glass shoppers rather than buyers.
This year, Singapore-based Shein added kitchen mixers for$ 100,$ 10 bathroom holiday decorations, and$ 6 headphones in addition to clothing like$ 13 dresses and$ 16 jeans. Temu, a store owned by PPD Group, sells$ 9 garments and$ 12 women’s shoes.
According to Similarweb, Shein’s web received 28.6 million unique monthly tourists in October, an increase of 7.25 % from the previous year. However, compared to a year ago, only 4.1 % of visits to Shein’s site led to real trades.
According to its data, Amazon outperforms both online stores with 56 % of its 268 million unique monthly sessions in October leading to buying.
Temu, which debuted in the United States in September 2022, is providing discounts on items for the holiday shopping season. In October 2023, it received 42 million unique monthly visitors, more than four times as many as it did a month prior. Just 4.5 % of those led to true purchases.
The increased number of eyes on financial platforms is a result of aggressive marketing. As Shein expands its market and offers more items on its program, it is intensifying vacation advertising in the United States and Europe. After purchasing U.K.-based website merchantMissguided in October, the company’s valuation increased to$ 90 billion.
According to data, the Temu game overtook online in Europe in October, reaching 51 million monthly active users on both Apple and Android devices. Ai. 64 million people used the Shein game each month, an increase of two thirds from a year ago.
According to data from the marketing intelligence company SensorTower, Shein increased its ad spend by 60 % in the first two weeks of November compared to the same time last year. According to the statistics, Temu, its competitor, doubled its advertising spend in the same time period. SensorTower does n’t offer dollar amounts for ad spend.
Shein opened a pop-up shop in the Forever 21 store in New York City’s Times Square in November, showcasing home products and clothing in addition to its initial Time Square billboard.
According to reports, Shein has been able to surpass fast-fashion incumbent Inditex’s Zara and H&M, with incomes reaching$ 24 billion in the first three rooms of this year.
However, the fast-fashion behemoth continues to face tougher opposition from Temu.com and Amazon, two other online retailers.
Online shoppers have an “inherent ease amount” with Amazon’s extensive product categories, delivery speeds, and return policies compared to Shein and Temu, according to Melissa Minkow, director of financial strategy at info technology firm CI&T.
According to Similarweb, purchasing trips and special guests in the U. S. both increased in October at Amazon, which hosted a two-day Prime function in that month.
According to SensorTower, Amazon reduced its holiday marketing investing in earlier November compared to last year, but it still saw higher customer relationship than in 2022.
As consumers get closer to Black Friday, the competitive environment continues to intensify.
According to Peter Pernot-Day, head of business plan at Shein, the company has advised its market vendors to “optimate their product entries” by “providing competitive costs and keeping inventory up to date.”
McLymore, Arriana reported in New York, Helen Reid added to the monitoring in London, and Nick Zieminski edited.
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