Illustration: Francois Smit

The war for the consumer’s ecommerce wallet has begun, and the Chinese retail giants are not pulling any punches. Their advertising budgets are extraordinary, their marketing relentless and their strategy simple; gain market share quickly, hold onto it ferociously, and outbid anyone who tries to compete. And it’s getting nasty. In December 2023, Temu sued Shein for bullying and intimidation. In August 2024, Shein sued Temu for copyright infringement.

The European Commission launched a formal probe into Temu on October 31, saying it was not doing enough to prevent the sale of counterfeit products. Consumer groups have also raised concerns about the number of dangerous and toxic products on Temu and Shein, in contravention of EU regulations. Temu is now in almost 50 markets two years after its launch, and has 92 million customers in the EU.