Chinese apps Shein and Temu projected to capture only 1-2% of North American market share in 2024

  • Stifel analysts expect Shein and Temu to capture just 1 to 2 percentage points of North American market share in 2024
  • These Chinese apps offer deep discounts on clothing and are popular among younger people with limited budgets
  • Established brands like Nike, Under Armour, and Lululemon have less to fear due to their quality, performance, style, and branding distinction
  • Hanesbrands and Revolve Group may face headwinds from price-sensitive customers trading down
  • Shein has filed confidentially for a U.S. IPO and was valued at about $66 billion in May

According to Stifel analysts, the threat to established U.S. footwear and clothing brands from Chinese apps Shein and Temu is overdone. The analysts expect Shein and Temu to capture just 1 to 2 percentage points of North American market share in 2024. These apps offer deep discounts on clothing and are rapidly gaining popularity among younger people with limited budgets. However, established brands like Nike, Under Armour, and Lululemon have less to fear due to their quality, performance, style, and branding distinction. On the other hand, Hanesbrands and Revolve Group may face headwinds from price-sensitive customers trading down. Shein has filed confidentially for a U.S. IPO and was valued at about $66 billion in May.

Public Companies: Nike Inc. (NKE), Hanesbrands Inc. (HBI), Revolve Group Inc. (RVLV), Under Armour Inc. (UA), Columbia Sportswear Co. (COLM), Lululemon Athletica Inc. (LULU), Dick’s Sporting Goods Inc. (DKS), Walmart (WMT), Amazon (AMZN), Cider Urbanic (undefined), ChicV (undefined), Doublefs (undefined), Cupshe (undefined), JollyChic (undefined), Trendyol (undefined), Hanesbrands Inc. (HBI)
Private Companies: Shein, Temu, PDD Holdings Inc.
Key People: Jim Duffy (Analyst)

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Factuality Level: 7
Justification: The article provides information from Stifel analysts who conducted a survey of 300 consumers. It also mentions the impact on specific brands and provides some context on the Chinese platforms. However, the article lacks additional sources or perspectives to support the claims made by the analysts.

Noise Level: 4
Justification: The article provides some analysis on the potential impact of Chinese apps Shein and Temu on established U.S. footwear and clothing brands. However, it lacks in-depth analysis and evidence to support its claims. The article also includes some repetitive information and does not provide actionable insights or solutions.

Financial Relevance: Yes
Financial Markets Impacted: The article discusses the potential impact of Chinese apps Shein and Temu on established U.S. footwear and clothing brands. It mentions specific companies like Hanesbrands, Revolve Group, Nike, Under Armour, Columbia Sportswear, Lululemon Athletica, and Dick’s Sporting Goods.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article focuses on the market share impact of Chinese apps on established U.S. brands, but it does not mention any extreme events or significant disruptions.

Reported publicly: www.marketwatch.com