Temu Emerges as a Major Player in Global E-Commerce

Temu, a rapidly growing online marketplace, has emerged as a significant competitor on the global e-commerce stage, surpassing Amazon to become the fifth-largest online market worldwide. Launched in 2022 as a branch of the Chinese company Pinduoduo, Temu has attracted over 93 million users in Europe and operates in 79 countries. Its business model relies on ultra-low prices achieved through strategies such as reverse auctions, direct consumer-to-manufacturer sales, and aggressive marketing. Critics argue that these low prices stem from questionable practices, including poor product quality and misleading tactics. Despite skepticism regarding its sustainability, Temu continues to invest heavily in advertising and subsidies to expand its customer base and maintain its competitive edge.

Key Points:

• Temu has over 200,000 merchants and ships 4 million packages daily.
• The platform has reached 93.7 million users in Europe, with significant numbers in Germany, France, Italy, and Poland.
• Temu's success is attributed to a proven business model from its parent company, Pinduoduo.
• The company uses reverse auctions and a consumer-to-manufacturer model to offer low prices.
• Temu benefits from favorable customs regulations, allowing many products to be shipped duty-free.