These 5 trends will steer retail in 2025

Americans are enamored with Chinese retailers, but policies and privacy concerns could slow momentum

Several Chinese retailers have dug deep inroads with American consumers in recent years. Cheap products and bullish digital marketing helped brands like Shein, Temu, and TikTok Shop thrive.

Shein generated $2 billion in profits in 2023, while Temu’s success helped creator Colin Huang become one of the richest men in China. PDD Holdings, Temu’s parent company, said it made about $35 billion in revenues in 2023, a 90% increase from 2022. It’s unclear how much TikTok Shop has generated since its 2023 launch, but the company said in its 2024 economic report that the app drove $15 billion in revenue for small businesses in the United States. A March Financial Times report, citing three sources, said TikTok Shop facilitated $16 billion in sales in the United States.

Americans are enamored with these brands, but obstacles lay ahead in 2025.

TikTok, for example, could be banned in the United States before the end of January. Congress passed a law in April that gave ByteDance, the Chinese company that owns TikTok, a January 19 deadline to divest the app or be removed from US app stores, citing security concerns. TikTok asked the US Supreme Court to block the law, arguing it violates the First Amendment rights of Americans who use the app. President-elect Donald Trump has suggested he opposes the ban, but what actions he would take is unclear.

The report said both Shein and Temu, meanwhile, have faced concerns over data privacy, product safety, and copyright infringement. At one point, Temu and Shein sued each other. Shein’s parent company, Roadget Business Pte., Ltd., filed a lawsuit against Temu in 2023 that accused it of creating fake Twitter accounts using Shein’s name and trademark. Temu later sued Shen, saying the fast-fashion company violated antitrust laws.

A Shein spokesperson said told BI that it “has robust data security policies and practices in line with industry standards, and we are committed to only collecting and using the minimum amount of data needed to fulfill orders. SHEIN stores U.S. customer data within Microsoft’s U.S.-based Azure cloud-based solution and within AWS’s U.S.-based cloud-based solution.”

The spokesperson said Shein “takes product safety very seriously and is dedicated to providing customers with safe and reliable products.”

These e-commerce stores also have to compete with powerhouse retailers in the United States, like Amazon, which launched its own Temu-like discount storefront called Haul in November.

Despite the hurdles, EMARKETER says the TikTok Shop will continue to grow, Shein’s supply chain model will become more popular, and Temu could expand its offerings into low-cost groceries.