Asian fashion brands win big in US

Two Chinese fast-fashion online giants are engaged in a fierce battle for market share in the United States.

Both Temu and Shein have also captured a substantial share of the international market, outpacing several fast-fashion giants in the US.

The companies' success is attributed to offering trendy clothing and accessories at affordable prices, and that has attracted a large customer base of teenagers and young adults.

Shein's market dominance is evident in its 50 percent share of US sales among major fast-fashion companies as of last November, Bloomberg reported. That far surpasses competitors like H&M and Zara, with 16 percent and 13 percent respectively.

Shein and Temu both sell clothing at lower prices than their competitors and have flexible return and exchange policies, and these have attracted more customers.

"I wanted to try Shein because, at the time, there was such big hype. All my friends were ordering a lot of stuff, and that was so cheap, so I definitely wanted to try it. All my friends and my mom have bought a lot of stuff from Temu as well. But I didn't because I know it's the same thing (as Shein)," Saga Hallberg, 33, told China Daily at a Forever 21 store in Times Square.

"The clothes are kind of like H&M, and I don't feel like it's that big of a difference. The product is about the same at a far lower price. I've purchased twice on Shein. Well, you get what you paid for." Hallberg said she shops at Shein for clothes, and her mother usually buys products for her home and kitchen on Temu.

Christina Melendez, who also was shopping at Forever 21, said she likes Shein because the prices are great.

"The product, the quality and the pricing. I almost shop at Shein every week," she said, adding that some products from Temu are not the best. "But it's worth it. It depends on what you are getting."

PDD Holdings, parent company of e-commerce platform Temu, released on Tuesday outstanding financial results for the third quarter, which showed revenue rising 94 percent year-on-year to 68.84 billion yuan ($9.64 billion) in the quarter ending Sept 30.

PDD's net income attributable to ordinary shareholders rose to 15.54 billion yuan in the third quarter, from 10.59 billion yuan a year earlier.

PDD shares jumped as much as 18 percent intraday in trading on the Nasdaq Stock Market on Tuesday. On Thursday, the stock closed at $147.44, up 4 percent after earlier reaching a new 52-week high of $147.65.

Temu's results showed a rise in payment processing fees, which implies a growing presence and activity in international markets.

"PDD's overseas initiative Temu was the major driver for revenue growth," Xiaoyan Wang, an analyst at 86Research, said.

Meanwhile, Temu's top competitor Shein has confidentially filed for an initial public offering in the US. Shein could launch share sales sometime next year.

Headquartered in Singapore, Shein was valued at about $66 billion during a fundraising round in May, The Wall Street Journal reported. A potential valuation for Shein's IPO was estimated at $90 billion, according to Bloomberg.

Agencies contributed to this story.