Images Credit: Shenglu Fashion

Temu and Shein, two of the biggest Chinese e-commerce players are pulling back due to the tariffs and rule changes. Both will raise their prices starting Friday, April 25 2025. These big moves can benefit locals because of Ad buyers, Discount retailers, Ecommerce SMBs. 

• Ad buyers – Both giants were buying tons of Google shopping, with them getting away from less ads competitions for locals and lower ad costs.
• With less competition from international brands, US local brands like TJ Maxx/ Marshalls, Dollar General, etc might regain some sales.
• Ecommerce SMBs – Small and medium-sized online stores might have a chance to shine

Kenapa harus peduli?

• This tariff war has global ripple effects. If Temu and Shein raise prices in the U.S., their entire global pricing strategy might shift to absorb the impact of tariffs and profit loss. Meaning that Indonesian consumers who buy from these platforms could also start seeing higher prices, even without local tariff changes, as the companies need to adjust pricing across multiple markets to stay profitable.
• Fashion is just one of the factors that got impacted by the tariff. How about imports from other categories like technologies, and home goods? Will this be like a domino effect? While high-end luxury might not move on the same price sensitivity, supply chains and raw material costs could still get hit.   
• How about the goods coming from Indonesia to the U.S? Like industrial and agricultural products (coffee and spices)? 
• Seeing it from a bigger lens – It’s interesting how the TIkTok 90-day divestment deadline in the US is being somewhat overshadowed by tariff headlines.

Images Credit : Wired

Advertising: Tariff Confusion and Its Impact on Advertising – New York Times

Higher ad spending typically signals a healthy economy. But now, with the uncertainty surrounding tariffs in the U.S., how can advertisers plan for the holidays if they don’t know how much products will cost next month? Many brands are pausing campaigns, and many are implementing rushing ads with wording like ‘Buy now before tariffs hit!’ on their Facebook ads.

• Kenapa harus peduli?
  • In uncertain times, advertisers should focus on building trust with clients by showing that they are monitoring the situation and taking proactive steps. Agencies can offer practical solutions (e.g reallocating budget) thus reinforce their role as trusted partners and maintain strong client relationships.
  • Potential shifting consumer behavior. Lower buying power = lower consumer confidence, focus on addressing consumer concerns about price increases while emphasizing the value their products offer. Note: it’s important to ensure these messages align with the broader campaign strategy.
  • Cost effectiveness – Digital advertising provides more affordable options compared to traditional media. In uncertain times, this becomes crucial for companies aiming to maximize their return on investment (ROI) while keeping costs low.

Images Credit: Inc

Lifestyle: Avoid These 5 Purchases During this Uncertain Global Economy – CNBC

Overconsumption might not be the smartest move in today’s shaky global economy. Legendary investor Warren Buffett reminds us to focus on needs over wants. Here are five items middle-class individuals should think twice about before buying:

• Avoid buying that new dream car – Vehicles are one of the assets that lose value rapidly. Buying a used car in good condition is better because the value of a new car can lose 20% within the first year and it will continue to do so up to 60% in the first five years.
• Subscriptions services – Reassess subscriptions that are truly needed and cut out the ones that don’t provide value. P.ss yes, that premium AI-generated image..
• New House – Don’t move into a larger home if you can’t afford the mortgage, property taxes, and maintenance costs. It’s not about flexing, but about being mindful of your finances. Instead, focus on making smart financial decisions that help you build long-term wealth for the future. (Yes, this can apply to luxury goods, concerts and..)
• Low-Quality Products – These products have a short life span, which ultimately increases spending (actually be costly overtime). Choosing quality over quantity can reduce frequency of replacements and same money over time.
• Gambling – “Gambling and lottery tickets are taxes on people who don’t understand math,” says Buffett. You need to change your perspective from wanting instant wealth to building wealth systematically.
  • Kenapa harus peduli?
    • Reassessing one’s financial spending can feel like an insecurity in itself. But don’t let that stop you. Overspending and impulsiveness might be the root cause of a bigger problem, and recognizing that can create a bigger impact on your future (hello, financial freedom!).
    • FOMO is real, and yes, mental health matters. There’s nothing wrong with spending on things that make you happy, but if it means not living within your means, maybe it’s time to rethink.

Kata untuk Hari Ini :
Prolonged Stagflation

How ongoing tariff wars could create longer-term consequences, for example:

• Higher tariffs = higher prices = companies may cut spending = unemployment rises = economic growth slows down = global recession.

Quotes of The day:
From the book The Mastery of Love by Don Miguel Ruiz

People learn to become selfish and to close their hearts so tightly. They are starving for love, not knowing that the heart is a magical kitchen. Your heart is a magical kitchen. Open your heart.

Open your magical kitchen, and refuse to walk around the world begging for love. In your heart is all the love you need. Your heart can create any amount of love, not just for yourself, but for the whole world. You can give your love with no conditions; you can be generous with your love because you have a magical kitchen in your heart. Then all those starving people who believe the heart is closed will always want to be near you for your love.

• Dapur ajaib adalah dapur hati penuh cinta – Membuka hati kita untuk memberi cinta tanpa syarat, baik untuk diri sendiri maupun orang lain. Hati kita diibaratkan sebagai “dapur ajaib” yang dapat menghasilkan cinta tak terbatas. Banyak orang merasa kelaparan akan cinta karena mereka menutup hatinya, tetapi dengan membuka hati dan memberi cinta secara bebas, kita bisa menciptakan hubungan yang penuh kasih dan menarik orang-orang yang juga mencari cinta sejati.