Core Viewpoint - The rapid growth of cross-border e-commerce is facing significant challenges due to changing policies and market dynamics, leading to a shift from a focus on low prices to a need for brand differentiation and operational resilience [1][2][9]. Group 1: Market Dynamics - Over the past two years, platforms like TEMU have disrupted the cross-border e-commerce landscape, leading to a decline in sales for many individual sellers who previously thrived on low-cost models [1][2]. - The cancellation of the "low-value exemption" policy by the U.S. in April 2025 has severely impacted Chinese cross-border e-commerce players, particularly those relying on direct shipping models [5][6][8]. - The introduction of new tariffs has forced platforms to adapt their business models, with many transitioning from full-service to semi-managed or local fulfillment strategies to maintain competitiveness [8][9][30]. Group 2: Regulatory Environment - Regulatory scrutiny has increased globally, with platforms like SHEIN and TEMU being designated as "super large online platforms" under the EU's Digital Services Act, indicating a tightening of oversight [4]. - In Southeast Asia, countries like Thailand and Indonesia have taken measures to ensure compliance from Chinese e-commerce platforms, reflecting a growing wariness of foreign competition [5][6]. Group 3: Competitive Landscape - The competitive landscape is intensifying, with major players like SHEIN and TikTok Shop also adopting new strategies to counter the rise of TEMU, which has quickly gained market share [20][22]. - TEMU's "full-service model" has attracted many sellers by minimizing entry barriers, but this has also led to concerns about sellers losing pricing power and market influence [22][24]. Group 4: Future Outlook - The cross-border e-commerce sector is expected to undergo a significant transformation, with a shift towards profitability and value-driven strategies rather than solely competing on price [32]. - The recent tariff adjustments have created a temporary window for increased shipping activity, as businesses rush to capitalize on lower costs before the next policy changes [27][28]. - The future of cross-border e-commerce will likely see a greater emphasis on brand building and product quality, as companies adapt to a more challenging regulatory and competitive environment [32].

Core Viewpoint - The rapid growth and profitability of cross-border e-commerce, particularly for Chinese platforms like TEMU, SHEIN, and TikTok Shop, is facing significant challenges due to changing regulations and increased tariffs, leading to a new era of competition and survival strategies in the industry [1][2][11]. Group 1: Market Dynamics - The cancellation of the "low-value exemption" policy by the U.S. government has severely impacted Chinese cross-border e-commerce players, particularly those relying on direct shipping models [5][7][11]. - TEMU and other platforms are shifting from aggressive price wars to brand transformation and operational adjustments in response to the evolving market landscape [2][11]. - The cross-border e-commerce sector is experiencing a shake-up, with smaller players and those dependent on low-cost strategies likely to exit the market, while larger, more resilient companies may gain market share [33][34]. Group 2: Regulatory Environment - Regulatory scrutiny has increased globally, with platforms like SHEIN and TEMU being designated as "super large online platforms" under the EU's Digital Services Act, leading to tighter regulations [3][4]. - The U.S. has also implemented stricter customs policies, which have resulted in significant price increases for goods sold through platforms like Amazon and TEMU [8][9]. Group 3: Business Model Evolution - The introduction of the "full management model" by TEMU has attracted many merchants by reducing entry barriers, but it has also led to concerns about merchants losing pricing power and autonomy [25][28]. - A shift towards a "semi-management model" is emerging, allowing sellers more control over logistics and pricing while still benefiting from platform support [29][30]. - TEMU's recent adjustments, including the Y2 model that allows direct shipping from China to the U.S., aim to mitigate the impact of high tariffs while maintaining competitive pricing [35][36]. Group 4: Future Outlook - The cross-border e-commerce landscape is expected to transition from a focus on aggressive growth to a more sustainable, profit-oriented approach, emphasizing product quality and brand value [37][38]. - Companies must enhance their research and development efforts and shift from low-cost exports to high-value branding strategies to thrive in the new regulatory environment [38].