From September 2022 to now, more than a year after it was launched, temu has been soaring in overseas markets, with a significant increase in the number of new sites, number of sellers, number of active users, gmv and other dimensions. The attitude of sellers towards temu has also changed significantly. They stopped and watched at the beginning, then flocked to it, and now they view it rationally. Hugo cross-border organizes the important nodes of temu in 2023 for the reference of all sellers and friends to understand its development and foresee its future.
1, appeared in the Super Bowl
On February 13, 2023, temu platform released its first “super move” five months after landing in North America, and the temu advertisement appeared in the Super Bowl. The annual Super Bowl is held in Arizona, USA, and the advertisement placed by the e-commerce platform temu has become a highlight. temu also became one of the youngest brands ever to advertise in the Super Bowl.
The annual "Super Bowl" has long been the world's most commercially valuable super event. After the temu advertisement appeared in the "Super Bowl", temu fever quickly started on the American Internet. In the following month, temu's global cumulative downloads reached 50 million times. Industry insiders said that this advertising debut in the "Super Bowl" may be the first step in temu's brand marketing, aiming to gain a foothold in the US market.
2. Released the "Commodity Quality Accident Handling Rules"
In February 2023, temu released the "Commodity Quality Accident Handling Rules". Once the goods provided by the seller have quality problems, they will need to bear corresponding responsibilities. The seller pays compensation to temu based on the standard of 10,000 yuan/item/order. In the past, sellers were only required to pay compensation due to quality problems when returning goods. The new rules apply to all goods sold by sellers on the temu platform at all stages (including but not limited to goods ready for sale, goods currently on sale, and goods already sold). , products that have been removed from the shelves, etc.).
is a cross-border e-commerce platform that focuses on low prices. Many merchants regard temu as an effective channel to clear inventory. They use temu to sell the goods gathering dust in the warehouse. The profit is extremely low, and the quality control and quality inspection procedures are also difficult. Save money if you can, and you can imagine the quality. This move shows that temu strictly controls the quality of sellers' products and is likely to continue to tighten merchant-side policies in the future.
3, layout in Europe, six sites online
In April 2023, temu launched five sites in Germany, the Netherlands, France, Italy and Spain. This is the latest move of temu to expand in Europe after the United Kingdom. In terms of specific entry policies, the six European stations still continue the temu platform’s consistent low threshold requirements.
European site still continues temu's low-price promotion strategy. However, the European market may be a tough nut to crack for temu. The shopping habits of European users tend to go to vertical e-commerce websites for online ordering rather than comprehensive e-commerce. European consumers do not fully pay for low-price discount products. However, affected by the Russia-Ukraine conflict and inflation, many European consumers still have a negative attitude towards the economic situation. This may also be a rare opportunity for temu to rush into Europe with "cost-effectiveness".
4, expanding the Asian territory
After launching the Japanese site in early July, temu once again launched a new site - South Korea, to further expand its Asian territory. According to data shared by the data analysis platform data.ai and cnbc, temu has reached the top of the shopping app download charts in Japan and South Korea far longer than its competitors. As of November 2, 2023, temu has been at the top of the list of downloads in Japan's iOS and Google Play shopping applications for 101 days, with a total of 124 days of statistics.
The Japanese and Korean markets are closer to temu's base camp. For temu, which relies on price wars to win, lower logistics costs are conducive to temu's price wars in Japan and South Korea. Although there are many local players in the Japanese and Korean markets, the overall market is relatively fragmented, which provides an excellent scenario for temu to enter the game in the future.
5, layout in Latin America, Southeast Asia, and the Middle East
In August 2023, temu successively launched 12 sites. The confident and high-spirited temu is making great strides from the traditional developed regions of Europe and the United States to the broader Asian, African and Latin American markets, and has even set its sights on the Middle East market.The Israeli station is also the fourth station located in an emerging country, following the Mexican station in Latin America, the Chilean station, and the Philippine station in Southeast Asia.
is different from its previous focus on mature developed countries. temu's territory is gradually expanding to the markets of emerging countries. This may set off a storm of fully managed online new retail models in the local area. The ultimate cost-effective advantage will also bring new opportunities to other local e-commerce platforms. competitive pressure. Taken together, although the evaluation of temu in the industry has always been polarized and has mixed praise and criticism, temu is definitely the one with the fastest expansion rate among domestic cross-border giants.
6, launch of shipping service
In November 2023, temu will cooperate with world-famous shipping companies such as Matson, ZIM, CMA CGM, Maersk, and COSCO Shipping to solve cross-border e-commerce logistics problems through shipping express ships. In the current operations of
temu, in addition to the bulk of marketing expenses, logistics costs also account for a very high proportion. This move will help temu reduce logistics costs, achieve low prices and strengthen profitability. In addition, temu has always hoped to be a full-category platform. The introduction of sea shipping will also help it develop in the large-scale category. Its cooperation with shipping companies can transport larger-scale goods at a lower cost. It cannot be ruled out that it is for Prepare overseas warehouses.
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