Chinese e-commerce giants Shein and Temu are spending big on online marketing this Black Friday. They are targeting consumers through search engines with terms like “Walmart Black Friday deals” or “Kohl’s Black Friday.”
The cost of online marketing has gone up a lot. This is because of bidding wars between retailers Temu and Shein.
These actions have caused a surge in the “cost per click” for popular Google search keywords. On Black Friday, retailers compete fiercely for visibility to attract shoppers. Temu and Shein have reportedly been targeting each other’s keywords, making online marketing costs even higher.
The “cost per click” has gone up sharply. This shows how far retailers will go to be seen over their competitors. The aggressive tactics show how competitive the retail industry is during big shopping periods like Black Friday.
These increased marketing costs can affect retailers’ pricing and profits. As companies spend more on online ads, these costs may eventually be passed on to consumers.
Shein and Temu’s Black Friday tactics
Helen Reid, a London-based reporter, says the current trends are part of a bigger strategy among top retailers to dominate the market. She says that while aggressive advertising can boost visibility, it also raises questions about whether it can last and be profitable long-term. As the retail world keeps changing, the competitive tactics among big companies like Temu and Shein during Black Friday show how important online marketing is becoming.
With the higher costs of these strategies, both retailers and consumers will likely feel the impact. Future trends will show if such aggressive bidding is a short-term thing or a lasting shift in the industry. Chinese brands Shein and Temu are outspending their US rivals on online marketing.
A few brands like Abercrombie and Fitch and Victoria’s Secret saw sales go up, likely due to good marketing and the popularity of their fashion shows. The Business of Fashion said this Black Friday can be defined as “Shein and Temu versus the world.” It highlighted that consumers now look to these platforms for deals as they once did in malls. Traditional retailers face a challenge: their discounts end after Black Friday, while low-cost brands like Shein and Temu offer bargains year-round.
As Black Friday approaches, Shein and Temu’s aggressive pricing and marketing strategies are setting them up to potentially dominate. This is reshaping what consumers expect and the competition for US retailers.
