From "white label" to "brand", from "supply" to "co-creation", China's factories are undergoing a historic Transformation

In 2025, Temu reaches $15-22 billion in GMV in the US market, alongside TikTok Shop and Walmart, becoming a core player in the second tier. And just on March 25, Poundland dropped another heavy bomb - the

Formally formed a new brand "New Poundland", announced that it will invest 100 billion yuan in the next three years to integrate the supply chain resources of "Pinduoduo+Temu", incubate self-owned brands for the global market, and made a military order: "Strive for Pinduoduo", and made a military order: "Strive to create another Pinduoduo in three years".

What does this mean? For sellers, it's not just that the platform has a new business, but that the whole logic of going overseas is undergoing a fundamental change - from "selling goods" to "branding", from "supply" to "co-creation", Chinese factories have a chance. From "supply" to "co-creation", the opportunity for Chinese factories has come.

Today an article to give you a thorough: what is the new Poundland in the end? Why Pinduoduo want to smash hundreds of billions of dollars to do this thing? As a seller, how do you seize this wave of dividends?

First, what is the new Spellmaster in the end? The leap from "platform" to "general contractor".

In the past, what did Poundland do? Do platform. Merchants open stores, the platform attract traffic, earn advertising fees and commissions.Temu do what? Do full hosting. Merchants supply, platform operation, earn is the efficiency of the money.

But the new Spellmaster is different.

It eliminates the "supply" aspect as well.

The first phase has already injected 15 billion dollars in cash and set up a special company in Shanghai for the new Spellmaster. In the next three years, another 100 billion will be smashed. Zhao Jiazhen, co-chairman of Pinduoduo, put it bluntly, "In the past three years, Temu's rapid growth is a key leap brought about by the dividend of China's supply chain industry.2026, the domestic supply chain has ushered in a critical window of transformation and upgrading."

The phrase translated is:It's time to upgrade from selling to branding.

In the past, a large number of Chinese factories lived in a very simple way: doing OEM for overseas brands and earning some hard-earned money. Or open a store on Pinduoduo by themselves, operate, ship and do after-sales service by themselves.

But now the new Spellmaster is here, and it says to you: you don't have to open a store, you don't have to care about the operation, you don't even have to worry about selling or not selling. You just produce the goods according to my drawings, my standards, my specifications, and leave all the rest to me.

The role of the factory became simpler - costs went down and profits stabilized. And New Spellmaster itself, became that sole buyer and seller. It buys out capacity from the factories and then sells the goods globally with its own brand, its own channels, and its own logistics system.

It's not a freight forwarder. A freight forwarder is someone who transports goods for someone else. This is being that biggest shipper.

Think about the volume. Pinduoduo + Temu, covering more than 90 countries around the world, has hundreds of millions of consumers' real-time data in hand. What goods it wants, what specifications, what features, what prices, it knows better than the factories themselves. In the past, what the factory produced, what the platform sold. Now it is the platform that says: I want this, you do it.

Secondly, why did Poundland have to smash a hundred billion dollars to do this?

Pinduoduo's last high moment was the first quarter earnings period of 2024, when revenues grew by 1,30% year-on-year, net profit grew by 2,46%, and market capitalization once surpassed that of Alibaba. But in 2025, the growth bottleneck showed up:

• Full year revenue growth of 10%, with growth rate falling significantly from previous years
• Net profit declined by about 12% year-on-year, profit margins squeezed
• "Tens of billions of subsidies" model is copied by major platforms, the differentiation advantage is weakened
• Domestic user growth has peaked, and those who should have registered have basically done so

Meanwhile, Temu, which has high hopes, is experiencing unprecedented geo challenges. Tariffs on some categories in the U.S. have reached as high as 1,45%, and the EU has removed tariff exemptions for imported parcels under €150 from July 1, 2026, with a fixed tariff of €3 per parcel.With more than 95% of goods on Temu and SHEIN's platforms priced at less than €150, the move will directly lead to an increase in the average cost of operations by 15-20%.

The ceiling of the old model has reached the top. The launch of the new Pimm's is an upgrade "forced" by the external environment - theThe white label, which has to be turned into a brand.

Three major opportunities for sellers in the new Poundland

Opportunity 1: From "OEM" to "Brand Co-Creation"

The logic of Xinjiam is: use the global consumption data accumulated by Temu to analyze the real demand overseas, and then based on these data, penetrate into the relevant industrial zone in China, select the best among the best, and unite with the relevant factories to carry out product development and brand definition. Finally, the products will be sold globally through self-managed channels to realize profit sharing and brand building.

Factories are responsible for production, and Pinduoduo is responsible for brand packaging, product definition, overseas marketing, warehousing and logistics, and after-sales service. The factory earns a stable OEM fee, and Pinduoduo earns money for brand premium and full chain efficiency.

What does this mean for sellers? If you have your own factory, or a deep binding supply chain, you are no longer just "doing OEM for overseas brands", but have the opportunity to create a brand with Jinduoduo and go directly to sea.

Opportunity 2: From "multi-category casting a wide net" to "targeted incubation"

New Spellm does not intend to do everything. The official line is: invest 100 billion yuan over the next three years to fully cover the domestic industrial belt, launch customized manufacturing solutions, and cultivate a number of self-owned brands with different positioning and multiple categories.

Notice the word "customization". Instead of a one-size-fits-all approach, we will select the right industrial zone, the right category, and the right factory, and incubate them on a one-to-one basis. Core industrial zones such as household appliances, home furnishings, 3C, apparel, etc., may be deeply bound to create internationally competitive brands.

What does this mean for sellers? If you are in an industrial zone that is the focus of Jindo, or your factory has a unique supply chain advantage, you may be the chosen "co-creation partner".

Opportunity 3: From "Products Going Overseas" to "Standards Going Overseas"

When Chinese factories used to do OEM, who gave them the drawings? It was given by Wal-Mart, it was given by Ikea, it was given by Nike. Overseas giants hold the power of definition, and Chinese factories can only do what they are told.

But now, the drawings can be from Poundland. The standards are set by the Chinese.

Poundland has already done something similar in the Shaodong bag industry belt in Hunan province. Shaodong produces more than 70% of the country's school bags, but for a long time to OEM, homogenization competition is serious. After Pinduoduo went in, using data analysis to help local merchants do accurate product development, and now Shaodong has emerged a number of their own brands.

This is an amplified version of what the new Spellmaster is trying to do - it used to be an industrial zone, now it's a national industrial zone.

What does this mean for sellers? Instead of just passively accepting design drawings from overseas brands, you have the opportunity to participate in standard-setting for Chinese brands. Behind this is the issue of pricing power.

If you still have questions about Temu or New Spellm, or need to handle the U.S. company registration, EIN application, bank account opening services, welcome to contact me at any time (micro-signal: qcygscszk, or call my cell phone: 18676749275). Let us use our professional U.S. market service experience to help you seize this wave of brand overseas dividend.

Fourth, what should sellers do now?

Step 1: Examine your supply chain capabilities

NewSpring is looking for the "best of the best" factories. If your supply chain has unique advantages - such as special processes, cost control, and quick response - you have a chance to be one of the chosen ones.

Step 2: Focus on core industry belt opportunities

New Spellm will focus on the core industrial belts of home appliances, home furnishing, 3C, apparel and so on. If your products are in these categories, it is recommended to pay close attention to New Spellm's investment policy and industrial zone cooperation program.

Step 3: Consider the U.S. Company Layout

Whether it's Temu or New Spellm, a compliant U.S. entity is required to go overseas. If you don't have a U.S. company yet, it is recommended to register in advance and complete the EIN application and bank account opening to prepare for the subsequent cooperation.

Step 4: Move from a "sell mindset" to a "brand mindset".

The core of the new Poundland is brand incubation. If you are still stuck in the old thinking of "store, low price, rush volume", you may miss this wave of dividends. It is recommended to start thinking: what are the unique selling points of your products? What are the irreplaceable advantages of your supply chain? What value can you contribute to the new Jiem?

V. What can we do for you?

In the face of Temu's explosive growth and the wave of new Spellum's brands going overseas, you need not just an information provider, but a professional partner who really understands the U.S. market and can help you complete the compliance layout.

The value that Enterprise Finance earnings can bring to you:

Let's you quickly figure out exactly what the new Spellmaster is and what the opportunities are for you.
We will help you interpret the strategic intent and industrial belt cooperation direction of New Spellm based on your product category and supply chain capability, and tell you which opportunities are worth catching and how to catch them.

Getting you through the U.S. company registration and compliance process.
Whether you want to move into Temu or work with New Spellmaster in the future, you need a compliant US entity. We can provide you with a complete solution from U.S. company registration, EIN application to bank account opening. We have a branch office in the U.S. and are familiar with local regulations and hands-on processes.

Allows you to build compliance systems that can take on the dividends of brands going overseas.
From trademark registration to product certification, from tax declaration to customs filing, we will help you sort out a set of compliance system that can undertake the dividends of branding overseas, so that you will not be blocked out of the door because of compliance issues when the opportunity comes.

Gives you a ready-to-use local U.S. backup.
When you encounter tax issues, account usage, platform audits and other difficult issues in the U.S. market, our local U.S. team is able to respond in a timely manner to give you professional guidance and support.

If you still have questions about Temu or New Spellm, or need to handle the U.S. company registration, EIN application, bank account opening services, welcome to contact me at any time (micro-signal: qcygscszk, or call my cell phone: 18676749275). Let us use our professional U.S. market service experience to help you seize this wave of brand overseas dividend.