Amazon has a Temu problem. And a Shein problem. The discount Chinese retailers snuck up on Amazon, were dismissed, and then became a threat. Now, Temu is going at Amazon more directly, by selling goods made in the U.S., per The Information. Amazingly, Amazon is now reversing course, adding a cheap stuff made-in-China shopping section. 

I don't claim to be an expert on Chinese manufacturing and commerce trends, but I do know that Temu and its rivals spend a crazy amount of money on advertising - so much so that analysts have talked about how much of Meta's earnings are boosted by these supposed cheapskates. 

Here are my dumb questions:

• When are these Chinese companies going to build out big retail media networks, if they aren't already?

• Would U.S. advertisers work with these companies - which probably have awesome consumer data - but may not have the same reputation privacy (or other important things)?

• What would happen to Retail Media - or the U.S. digital ad economy, if these companies ever get banned, or tarrif-ed to death, by say a new/old president?

In the meantime, it is wild to see anyone make Amazon sweat, just a little.

Dig Deeper With These Links:

• Temu Breaks With Direct-From-China Strategy In Threat to Amazon - Jing Yang [The Information]

• Temu's Advertising Avalanche Is Impossible to Ignore - Christina Garnett [Adweek]

• Meta’s continued rally could hinge on the fortunes of upstart retailers Temu and Shein - Jonathan Vanian [CNBC]

• Meta's 3Q23: 21% CC Ad Growth Led By Advantage+ and Chinese Advertisers - Brian Wieser [Madison and Wall]

• 2024’s Top App: Temu Dominates App Stores This Year - Cailey Gleeson [Forbes]