What: Coresight makes a comparison of fast-fashion giant Shein and the new marketplace on the rise, Temu.

Why it is important: China is increasingly giving birth to international giants with business models mixing industrial capabilities with a digital core, who disrupt the retail industry.

Two Chinese e-commerce players, Temu and Shein, are attracting significant attention from consumers and retailers alike. While Temu is a marketplace that utilizes a consumer-to-manufacturer (C2M) model, Shein is a traditional retailer.

Shein uses a real-time fast-fashion model and adds about 6,000 new items every day. The company has started testing an e-commerce platform model in Brazil, which could help it diversify its revenue sources. Temu leverages the C2M model to provide fast and inexpensive services.

Both companies ship individual orders from China, but Shein is expanding its distribution centers in North America to get its products to customers faster.

When it comes to sustainability, Temu claims to offset carbon emissions for every delivery made, while Shein has invested $15 million in upgrading factories and launched a resale platform to appeal to Gen Z consumers. Both companies are expected to pursue sustainability initiatives to address concerns about the environmental impact of their products.

Comparing Shein and Temu