More than a third of Americans turn to Chinese marketplaces for holiday shopping this year

A recent survey by Omnisend has revealed that 82% of Americans plan to shop for gifts at large online marketplaces this holiday season. Among them, 36% are turning to Chinese marketplaces, with Temu preferred by 23% of respondents.

A growing demand for affordable options may be evident, as 37% of Americans plan to reduce their holiday gift budgets. This trend stands out among Gen Z shoppers, with 48% favoring Chinese marketplaces.

“Chinese marketplaces like Temu have rapidly gained popularity among Americans over the past year,” says Greg Zakowicz, Omnisend’s senior ecommerce expert.

“Temu’s Superbowl ads effectively introduced the idea that luxury can be affordable. While trust in these platforms remains low according to our previous research, the opportunity to save money continues to attract budget-conscious shoppers.”

Zakowicz adds, “Amazon has attempted to compete with the launch of Amazon Haul, but small businesses face the biggest threat. Their prices and product variety simply can’t match those offered by Temu and Shein.”

Younger generations opt for affordable and varied options

Omnisend’s survey found that among the 36% that prefer Chinese platforms, Temu takes the lead with 23%, followed by Shein (18.3%), TikTok Shop (11.9%), and AliExpress (7.3%). Notably, 48% of Gen Z shoppers opt for Chinese marketplaces, with Millennials and Generation X following suit with 43% and 38.5% respectively. 

Zakowicz notes, “With rising inflation and living costs, it’s no wonder younger generations are drawn to affordable prices. Gen Z, in particular, values the variety of products offered by platforms like Shein and Temu – whether trendy or unique.”

Americans are spending less this year

Further data reveals that 37% of Americans plan to spend less on gifts this year. Average holiday budgets vary by generation, with younger shoppers being more cautious. Among Gen Z, almost 23% have a budget of $101-300, followed by 18.6% with a $51-100 budget. Millennials and Generation X also favor a $101-300 budget (20.5% and 18.3% respectively), though almost 15% in both groups also allocate $301-500.

How can smaller retailers compete with Chinese giants?

Chinese marketplaces are here to stay well beyond the holidays. Zakowicz advises, “The best way to stand out against these retailers is to provide a customer experience they can’t replicate.”

“Our previous survey revealed that while Temu offers significantly lower prices, many consumers still find Amazon’s prices reasonable. This shows that shoppers are often willing to pay a little more for quality and reliable service,” he explains.

To address this, Zakowicz suggests using an omnichannel marketing platform. “Omnichannel platforms allow businesses to manage everything from email and SMS campaigns to push notifications and customer reviews all in one place,” he explains.

“Automation, especially during the hectic Christmas season, will save you precious time, whereas personalized campaigns will help you build stronger connections with your audience.”