Shipping Data - Global container freight index CCFI reported at 1200.73 points, down 2.56% month-on-month[5] - Shanghai Container Freight Index (SCFI) at 1489.68 points, down 3.94% month-on-month[5] - Ningbo Container Freight Index (NCFI) at 1053.86 points, down 3.11% month-on-month[5] Air Freight Data - Global air cargo index BAI reported at 2071 points, up 2.17% month-on-month[5] - BAI30 at 3460 points, up 2.06% month-on-month[5] - BAI80 at 4455 points, up 0.84% month-on-month[5] Market Trends - SCFI has declined for nine consecutive weeks, with significant drops in the US West and East routes, at 9.8% and 10.7% respectively[19] - FedEx increased import handling fees from $1.5 to $2.5 per package, a 67% increase, effective August 18[13] - UPS will implement new dimensional weight pricing rules, tightening thresholds for additional fees[13] Cross-Border E-commerce Developments - Temu shifts focus to the European market as US tax policies impact growth, with GMV in Europe surpassing that in the US[15] - Trump plans to impose a 250% tariff on semiconductor and pharmaceutical products, potentially impacting trade dynamics[15]

Group 1 - The core point of the article is that Shein has reduced its prices in the U.S. to attract consumers after the U.S. lowered tariffs on Chinese imports, contrasting with competitor Temu, which has imposed additional fees [2][5]. - Shein's average price for 98 tracked items dropped to $5.56 on May 15, down approximately 13% from the peak of $6.38 on May 7 [2]. - Following price increases since April 25, Shein's U.S. sales have declined by 15% year-over-year as of May 4, while Temu's sales fell by about 10% during the same period [5]. Group 2 - Both Shein and Temu experienced a similar decline in consumer traffic, with average daily visits dropping over 20% in the 15 days following the price increase [6].

Core Viewpoint - Temu has announced the cessation of all direct shipping from China to the United States, shifting to local fulfillment from U.S. sellers, marking a significant turning point and setback for the company [1][9]. Group 1: Business Model Changes - Temu's U.S. site and app have undergone major adjustments, now only displaying products shipped from local warehouses, with items shipped from China marked as out of stock [1][2]. - To promote local warehouse products, Temu has prominently displayed a message stating "Local warehouse products, no import fees" on its homepage [4]. - The decision to stop direct shipping from China was anticipated, as Temu had already begun limiting traffic to U.S. fully managed products and increasing prices prior to the announcement [7]. Group 2: Regulatory Impact - The U.S. Customs and Border Protection (CBP) announced the cancellation of the tariff exemption for goods valued under $800 from mainland China and Hong Kong, effective May 2 [8]. - This change significantly impacts Temu's ability to maintain low prices, as it previously exploited the T86 customs clearance loophole to avoid tariffs [8][9]. - With the new regulations, Temu's direct shipping model to the U.S. is no longer sustainable, leading to a shift towards a semi-managed model [9][11]. Group 3: Market Dynamics - The U.S. market is crucial for Temu, contributing 29.27% of its traffic, while other countries contribute only single-digit percentages [9][10]. - The cancellation of the T86 exemption diminishes Temu's competitive pricing advantage, which had previously allowed it to outperform competitors like Amazon [11]. - Following the shift to a semi-managed model, Temu's advertising efforts have significantly decreased, with its Google Shopping ad exposure dropping from 19% to 0% within a few weeks [12][15]. Group 4: Expansion Challenges - Temu is now focusing on expanding into Europe and Brazil, but faces challenges in these markets due to their fragmented nature and varying regulations [15][17]. - In Brazil, Temu's advertising expenditure surged by 800 times, resulting in an increase in traffic share to 11.59%, but the overall market remains less lucrative compared to the U.S. [16]. - The European market presents additional hurdles, including potential new tariffs on imported small packages, which could further complicate Temu's expansion efforts [17][18].

Core Viewpoint - Temu, a cross-border e-commerce platform under Pinduoduo, will cease direct sales of goods imported from China to U.S. customers, shifting to local sellers for U.S. market sales [1][3] Group 1: Business Model Changes - Temu will no longer allow U.S. consumers to purchase directly from China, instead offering products stored in U.S. warehouses [1] - The new model eliminates additional import duties and customs fees, helping Temu maintain competitive pricing [1][3] - Temu is actively recruiting U.S. local sellers to enhance its platform and expand business reach [1][3] Group 2: Regulatory Impact - The change was prompted by a new policy from U.S. Customs and Border Protection (CBP) that ended the duty exemption for small packages from mainland China and Hong Kong, effective May 2 [1][3] - All goods imported from China must now go through formal customs procedures and pay full duties, with tariffs potentially reaching up to 145% [3] Group 3: Operational Adjustments - To ensure sufficient local inventory, Temu is accelerating the recruitment of U.S. sellers and has expanded its warehouse coverage from 15 to 40 cities [3][4] - Temu is investing in local operations by hiring talent from major U.S. e-commerce companies, offering salaries 40%-60% higher to attract executives [4] Group 4: Financial Performance and Market Pressure - Pinduoduo's revenue growth is slowing, with Q4 2024 revenue reported at 110.61 billion yuan, a 24% year-over-year increase, below market expectations [5] - Temu is projected to contribute over half of Pinduoduo's nearly 200 billion yuan commission revenue in 2024, but it is still unprofitable, with losses estimated at around $3.5 billion [5] - In response to market pressures, Temu significantly reduced its advertising spending in the U.S. in April, indicating a strategy to lower costs [5] Group 5: Industry Trends - Similar to Temu, SHEIN has announced price increases to cope with the new tariff pressures and is shifting production from China to other countries to avoid high tariffs [6] - The cross-border e-commerce sector is entering a more complex and competitive phase due to increased tariffs and the cancellation of duty exemptions, necessitating a balance between price competition and compliance costs [6]

Group 1 - Chongqing's "6·18 E-commerce Festival" officially launched on April 28, 2025, aiming to enhance regional consumption and promote the development of the digital economy in Western China [3] - The festival features a theme of "Empowering Digital Commerce, Creating a Smart Future" and includes activities such as foreign trade product promotions and digital economy forums [3] - The event will leverage technology through three-dimensional live broadcasts to showcase Chongqing's manufacturing capabilities [3] Group 2 - The U.S. government has increased tariffs on Chinese goods from 104% to 145%, leading to significant price hikes on e-commerce platforms like Amazon and Temu, with average price increases of 29% and over 90% for some low-cost items [4] - The tariff changes have created challenges for U.S. importers reliant on Chinese manufacturing, with some companies experiencing dramatic increases in packaging costs [4] - The impact of these tariffs is squeezing the survival space for small and medium-sized enterprises, leading to a shift in consumer behavior towards discount retailers [4] Group 3 - The State Council of China has approved the establishment of 15 new cross-border e-commerce comprehensive pilot zones, which will benefit from tax exemptions and support for overseas warehouse construction [5] - This strategic move is seen as a response to changes in international trade dynamics, with the potential for Chinese cross-border e-commerce to gain market share due to its cost advantages [5] - The A-share market for cross-border e-commerce has shown active performance, with companies like Tianyuan Co. seeing stock price increases of over 30% due to policy benefits and market demand [5]