Selling packages of consumer products the buyer doesn't know what. 54m users in US. Grown a lot in past couple months. I'd never heard of it before this week when it appeared in headlines saying it was coming for Amazon. Ridiculously cheap deals, cheaper than Amazon, like half or a third of the Amazon price for some things shown (is this because Amazon shifted years ago to trying to profit from products, perhaps manipulating sales competition)? Amazon charges sellers 30%.
Gamified. Spin a wheel and get promo bonuses. Also has games that if you play you can gain buying benefits on their site.
Chinese manufacturers used to sell these products to US retailers, but now Chinese companies are also doing the retail.
Temu takes a bit longer to arrive, but does this Amazon advantage, which they spent a lot on in the past decade, really matter to customers?
Race to the bottom?
Temu spends a lot on advertising, mostly on Facebook etc. They send free products to influencers. They send promo codes, afiliate links to share on social media. However their products might be cheap quality. Knockoffs (like Shien).
Parent company is Pinduoduo. It has a lot of money. It's model is extremely low (unsustainable?) prices. Sales compounding eventually made Pinduoduo profitable in its compatition with Alibaba. It's focus is on customer aquisition and not on profits.
US regulators have been ‘fighting’ TikTok but haven't done anything regarding Temu.
China hasn't made it very easy for foreign investors to operate on the ground over past years when China was a surging place everyone wanted to do business. Now, their period of growth is possibly over, and what can they expect from foreigners?
Services the government wants, versus companies competing with Chinese firms.
Tax intake hasn't been strong this year.
Show More
Show Less