Home Retail How Retail App Temu Lures US Shoppers With Mind-Bending Prices

How Retail App Temu Lures US Shoppers With Mind-Bending Prices

by Ozva Admin

Temu seemed desolate when it was first released, but now he adds thousands of new products every day, says the company. Rui Ma, investor and analyst who founded China Tech Buzza community of podcasters and investors, says the store has evolved into “chinese speed” – the kind of iteration and rapid growth that Chinese companies are known for, and that American companies can struggle to keep up with. “I think it’s delivering a pretty good customer experience,” he says. “I’ve already ordered from there three times.” His haul includes household items and those dazzlingly cheap Lenovo headphones, which are among Temu Best Sellers.

Temu may be artificially tempting right now. It offers free shipping with no minimum purchase and general discounts of 30 percent, but Pinduoduo could be subsidizing early customers in a bid to gain word of mouth. “The question for investors would be, how profitable is this?” says mom.

Pinduoduo, one of China’s largest online shopping sites, can afford to invest in a swing set for American customers. The company, which did not respond to interview requests, listed on the Nasdaq stock market in 2018 and reported nearly $15 billion in revenue in 2021. In China, pinduoduo allows companies, including farmers— sell directly to consumers through a popular mobile app that is very different from those offered by US retailers. It includes games and social components, such as shopping. via live streaming. A popular group buying feature allows friends to band together to get a product at a very low price. But the company’s success in China is based on a logistics network of warehouses and delivery partners.

Winning the loyalty of American shoppers who have many other more familiar options will be one of Temu’s biggest challenges, says the retail marketing consultant. Cathy Hotka. Their low prices appear to be gaining traction, but they also carry the risk of pushback from poor quality and inaccurate sizing, he says.

Previous attempts to crack US e-commerce from China have met with limited success. Alibaba’s AliExpress, a giant in China, failed to gain much traction and was singled out by the Office of the US Trade Representative for selling counterfeit products. Desirea US e-commerce site that features many Chinese suppliers, has had problems with quality control and shipping issues. Shein has been success in fast fashion but has also received criticism for the environmental impact of clothing so cheap that it is almost disposable.

Temu’s website says it will “offset the carbon emissions of each delivery” and prominently displays its intellectual property policy—but it’s too early to gauge the company’s commitment to sustainability and copyright law. Ma says that within China, Pinduoduo used to be known as a purveyor of cheap, low-quality products, but has recently transformed its image and is now known for sustainability initiatives and efforts to help farmers.

WIRED went shopping in Temu earlier this week, browsing through its fascinating but messy selection. After introductory discounts were applied, a shopping cart that included a five-pack of kitchen sponges, a hair catcher for the bathroom sink, two flamingo-print mouse mats, a mini-humidifier, a sink strainer from stainless steel and a satin two-piece. the pajama set came in at just $13.97.

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