It is reported that in less than a month, Pinduoduo’s Temu has successively entered two Asian countries. On July 1st, it was launched in Japan, and on July 25th, Temu Korea Station was officially launched. Pinduoduo’s low-price storm swept all the way from North America to East Asia, and now it has entered 27 countries and regions around the world.
In the US market, Temu has occupied the first place in the APP store download since it was launched on September 1 last year, and has been occupying the ranking for half a year. According to the data, in June this year, the number of monthly active users of Temu in the United States has reached 42 million. However, the recent mutual litigation between Temu and Shein has once again become the center of the topic.
Temu’s pace has never stopped since it was launched in overseas markets for 330 days. It is reported that the platform plans to open the Middle East site in August this year, and plans to further expand from developed regions such as Europe and America to developing regions such as Southeast Asia.
Temu set off a storm of low-price war in the world.
Open the Korean station where Temu has just launched, and the jumping characters on the top of the homepage directly tell the user that 90% of the original price of the goods has been “cut”. Here, you can buy a sewing kit for about 500 won (about 2.8 yuan) or an air-conditioning fan for less than 20,000 won (about 110 yuan).
This ultra-low price has undoubtedly attracted many users. In September last year, Temu first entered the North American market, and stood out from competitors such as Amazon and Wal-Mart with ultra-low price strategy, and quickly obtained more than 20 million downloads in just four months. On July 1st, Temu went online again in Japan, and quickly ranked first in the “shopping” category of Japanese App Store.
It is worth mentioning that in the past two years, influenced by the global economic environment, prices in Japan and South Korea have continued to rise. In South Korea, people’s daily eating and drinking prices are rising gradually. For example, the price of a bowl of Zhajiang Noodles rose from 5,846 won in March 2022 to 6,800 won in March this year, up 16.3% year-on-year. According to statistics from the Korea Statistics Office, due to the rising prices of electricity, natural gas and water, the national consumer prices in Korea rose by 4.7% in the first quarter. Japan is also facing a similar situation, and the national consumer price index has been rising for 22 consecutive months.
For Japanese student Zihan (a pseudonym), Temu’s entry timing is very suitable, because the demand for low-priced goods from Japanese friends around her is gradually increasing. On social platforms, bloggers who talk about saving money are also popular. However, the arrival of Temu has further squeezed the profit margins of businesses. Unlike businesses such as Amazon, which can set their own prices, on Temu, the platform finally decides the selling price and requires businesses to provide products. Some merchants said that the price quoted by Temu products on the shelves is 10%-20% lower than that of B2B e-commerce platform 1688. This means that merchants must offer more competitive prices on Temu to attract more users.
However, Wang Ming (pseudonym) doesn’t think so. He has been doing cross-border e-commerce business in Japan since 2018. “Why do people say that Temu crushes suppliers every day, and there are so many people to do it? Because the amount of Temu is too large, a large amount is king. ”
Xu Sisi (pseudonym), a Shenzhen businessman who sells mobile phone cases, finally gave up joining Temu. On his independent station, an ordinary mobile phone case costs about 20 dollars, and expensive mobile phone cases can be sold for 100-200 dollars. In his view, overseas consumers are willing to pay for quality, and the price lower than Temu is both an advantage and a limitation.
Post time: Aug-04-2023