In the cross-border e-commerce sector, Temu, a subsidiary of Pinduoduo, has become an industry-recognized dark horse due to its astonishing growth rate and market performance. According to the latest data from Similarweb, Temu achieved a remarkable leap within just six months. From June 2023, with 226.3 million users, the number of unique visitors to Temu surged to 467 million by December, equaling that of the global platform AliExpress. This rapid growth propelled Temu to become the world's second-largest online retail giant, trailing only behind the industry leader Amazon, which boasts 2.659 billion users.
In 2023, Chinese cross-border e-commerce platforms pressed the acceleration button on their international expansion. Their rapid growth in overseas markets has continued to attract the attention of both domestic and international media, as well as consumers, marking a new phase in the development of China's cross-border e-commerce. According to the "2023 China Cross-Border E-commerce Platforms Overseas Expansion White Paper" released by the international market research firm Nielsen, an increasing number of Chinese e-commerce platforms have developed the capacity to compete globally and have begun to challenge the global e-commerce giant Amazon. Among them, the most representative platforms, AliExpress, Shein, TikTok Shop, and Temu, are collectively referred to by external media as the "Four Little Dragons" of China's overseas expansion.
AliExpress, a subsidiary of Alibaba Group, has over a decade of experience in overseas cross-border operations. In 2023, AliExpress not only increased its investment in key markets such as Spain, the Americas, and Russia but also actively promoted growth in emerging markets like Japan, South Korea, and the Middle East, successfully becoming the third-largest e-commerce platform in South Korea. By the end of 2023, AliExpress had approximately 421.8 million users, ranking third globally. AliExpress, with its competitive pricing and diverse supply chain, has a vast user base worldwide, particularly in Europe and Latin America.
Shein, a company specializing in fast fashion, has rapidly gained immense popularity among young consumers in overseas markets with its strong sense of fashion, quick product updates, and affordable prices. As of the end of 2023, Shein has approximately 172.3 million users. Although its user base is smaller than that of Amazon and AliExpress, Shein wields significant market influence in the fast fashion sector. Furthermore, Jamie Salter, founder and CEO of Authentic Brands Group, revealed in a conference that Shein's revenue in 2023 had exceeded 30 billion USD. He stated that while Shein may not be the world's largest fashion retailer, it is undoubtedly one of the fastest-growing fashion retailers.
Leveraging the massive user base of TikTok's short-video platform, TikTok Shop has successfully transformed social media traffic into e-commerce visits, enabling seamless integration of product display and sales. This transformation of traffic is particularly evident in Southeast Asia, Europe, and North America, with young users being the primary consumer group for TikTok Shop. It is reported that TikTok Shop's Gross Merchandise Volume (GMV) target for 2024 is 50 billion USD, more than double its target of 20 billion USD from the previous year.
Temu is the strongest dark horse among the "Four Little Dragons" of China's overseas expansion. Officially launched in September 2022 as a cross-border e-commerce platform under Pinduoduo, Temu has captured a significant share of the overseas market, particularly in North America and Europe, with its extensive product range, competitive pricing, and flexible market strategies. During this period of global economic downturn, Temu's cost-effective strategy aligns with the "consumption downgrade" trend in Western markets, propelling its rapid growth overseas. To date, it has expanded to over 40 countries and regions, including North America, Australia, Europe, and Asia. For 2024, Temu has set a GMV target of 30 billion USD, double its projected turnover for 2023.
The competitive aim of China's "Four Little Dragons" may extend beyond Amazon to the broader global market. It is anticipated that the competition in the global e-commerce market will only intensify in the future, reshaping the cross-border e-commerce landscape and marking a new phase in the globalization efforts of Chinese e-commerce.