What: Shein’s meteoritic ascension was the tree hiding the forest: more are coming now.

Why it is important:  A new breed of disruptors are coming for department stores’ businesses and customers, and this time, with digital embedded at the core of their model. It is high time that department stores review their value proposition and unique selling proposal in order to limit the potential damage.

Chinese e-commerce companies Shein and Temu are expanding their operations to international markets such as Australia, New Zealand, and Latin America.

Shein is currently hiring for various positions in Mexico, Brazil, Belgium, Ireland, and Turkey. It has been valued at $100 billion and surpassed Amazon in terms of shopping app downloads from US stores. However, Shein is facing scrutiny for its sustainability practices in the US.

Meanwhile, Temu, owned by Pinduoduo parent company PDD Holdings and headquartered in Boston, is expected to launch in Australia and New Zealand this week, with a commission-free offer for sellers joining the launch.

Shein and Temu both offer low-priced goods through an app, and they are spending heavily on marketing to build brand awareness in multiple markets. Temu enables Chinese vendors to sell directly to shoppers without local infrastructure, while Shein is synonymous with cheap fast fashion. Both companies aim to support the Chinese economy and manufacturers by selling low-cost goods to global consumers. Experts suggest that Temu’s business model may shift more towards replicating its social commerce-oriented community group buying success in China, while Shein plans to expand into a marketplace-type business. As both companies grow and become more popular, they may face more scrutiny related to security, data privacy, and national security issues.

How Temu and Shein are planning expansion beyond the US