Shein actively diversified his electronic commerce supply chain, including Mexico and Brazil. We have also met Shein suppliers who built factories in Türkiye and Morocco.
After chaos in February, a platform also encouraged its Chinese suppliers to move manufacturing in Vietnam and began to build logistics capacities. Another platform has sent more than 10,000 parcels per day in the United States from a third country.
Nevertheless, the magnitude and generalized coverage of American prices have taken everyone by surprise. The shipment of a third country, or even the displacement of the supply chain, is now less safe than before.
What is the next step for Shein, Temu?
The world supply chain will always find its means of adapting to the shock launched to it, or that the radical change which becomes permanent.
If high prices become permanent, consumers will also adapt, possibly.
Logistics experts and economists warn that Mr. Trump's prices will notify higher prices and the shelves of empty stores for American consumers. The increase in prices will be in all areas – even for offline retail because, for many categories, the supply chain is concentrated in China or is closely integrated.
Chinese electronic commerce platforms, as well as traditional American retailers in Walmart, will have the room for limited suppliers. The price increase would be inevitable. Shein and Temu have already seen a drop in American sales since February.
There are many historical examples of large communities or entire companies living in economically ineffective closed systems, which find ways to justify their “normal” status. We hope we don't have to get there.
