Carolina Afonso, ISEG University Professor Today, 00:09 In addition to the (low) cost of products, Shein and Temu have gained momentum by taking advantage of trends on social networks such as TikTok and Instagram. Temu and Shein are growing by leaps and bounds and are an unprecedented online sales phenomenon. In the case of Temu, the website and app promise an online experience that allows customers to "shop like a billionaire", offering ultra-cheap products in a wide range of categories, including fashion, decoration, gadgets, electronics, among others. By comparison, Shein has grown to become the world's largest fashion retailer, based in Singapore. On its website, Shein refers to itself as a "global online fashion and lifestyle retailer" and sells in more than 150 countries. Both companies use an aggressive digital marketing strategy and sell their products directly to consumers. Temu operates as an online marketplace, connecting customers to millions of suppliers, manufacturers and brands. By "partnering" directly with sellers, Temu says this allows them to sell products at "factory prices", eliminating middlemen. Shein also has a direct-to-consumer approach, which it describes as an "on demand" model driven by its customers. It works with around 5,400 manufacturers, mainly in China, and adjusts its production based on the most popular items among customers, claiming that this strategy allows it to keep prices low and reduces surplus production. Both companies, however, have generated controversy, and have even been accused in the US of using forced labor in their supply chains, something they deny. What is a fact is that both companies are posing a number of challenges to retail in general. For many fashion brands, for example, it's not possible to compete with three-dollar tops or 13-dollar shoes. In addition to the cost of products, Shein and Temu have gained momentum by taking advantage of trends on social networks such as TikTok and Instagram. Today, Shein is responsible for 42% of the products listed on TikTok's #hauls hashtag, according to WWD. In conclusion, Shein and Temu are revolutionizing the online retail market with a value proposition based on ultra-low prices and aggressive promotion on social media. This is causing many traditional retailers to rethink their points of differentiation, which, in order to face the fierce competition from these new competitors, involves communicating the value of their products in a quality-price logic and sustainability in a medium-long term logic. It's a market that is boiling and where many waters will be troubled in the near future. Carolina Afonso, ISEG University Professor Today, 00:09 Carolina Afonso, ISEG University Professor