From what I hear, it’s also Chinese manufacturers trying to “break in” to the western market by initially operating at a loss. But I doubt how effective of a business strategy that would be, given that there is basically zero brand loyalty on marketplaces like temu. Am I getting my USB dongles from CKXLKY or TOPK? Fuck if I care! Idk tho, maybe the experience is different for people who buy stuff other than cheap electronics.
But yeah, there is 100% slavery involved. It’s like the cacao/coffee/chocolate industries, down to the “don’t blame us, we’re just buying these goods at market prices, like everyone else” excuse. Brother, you are the one setting the market price.
Ironically I have had good enough experiences with one or two Chinese brands to probably look at their stuff first whenever I ultimately replace/upgrade what I’ve got from them, but they certainly aren’t the “spam random letters to game Amazon’s systems” sort of brands and are really only slightly cheaper than the equivalents from elsewhere.
My country made it illegal to sell at a loss (for that exact reason) and IIRC wish and/or temu got in some kind of legal trouble for it. So did IKEA when they tried to use their restaurant as a loss leader - illegal here!
Then there’s the matter of shipping subsidies from the PRC, ain’t no way cross-continent shipping is 0.02 € on a 5 € item for which the last mile is handled by the national postal service which I know for a fact charges anyone more than one euro for delivering a damn envelope.
Those reasons sound retarded. Having a loss leader product or line just means you are recouping it elsewhere. It’s a draw-in, like $1.25 hotdogs at Costco. It’s different than if your whole business operates at a loss for a certain time in order to squeeze out competition. The only way this would make even marginally sense is if say both IKEA and JYSK had a cafeteria and IKEA decided to sell food at a loss while JYSK would not be able to afford in that segment.
From what I know, it’s not actually China subsidizing shipping, but the individual target countries instead, mostly on taxpayer money. This wouldn’t be bad in practice, except that goods not originating from China do not have subsidized shipping, thus the unfair advantage.
