As of April 2023, Temu has reportedly been downloaded 10 million times since its launch in September 2022, and is now available in several countries and regions. The wide range of products on the e-commerce platform is particularly attractive to overseas consumers, which, coupled with the gamified online shopping experience, encourages consumers to buy more and more. According to industry insiders, there are five core strategies and tactics behind Temu’s success.
1. Low prices
Like Shein, Wish and AliExpress, Temu’s business model is built around low prices. Also, Temu offers more discounts and lower prices than Shein, often with special offers such as some items for only 1 cent.
2. Efficient logistics network
Temu further sets itself apart from other e-commerce platforms by offering free delivery and return services to customers, thanks to Pinduoduo’s extensive network of suppliers and transportation partners. An efficient logistics network is important, as problems with supply and distribution networks are cited as major factors in Wish’s failure to break into Western markets.
3. Combine shopping with entertainment
A fifth of online shoppers in the U.S. say they don’t get the offline experience when they shop online. Temu aims to bridge this gap by introducing games into the shopping process. By playing small games like solitaire, consumers are rewarded, which ultimately keeps them on the platform longer and gives them a dopamine boost from winning free items.
4. Build a network of friends and acquaintances to share the shopping experience
To get consumers to play these games, the app relies heavily on recommendations, another core business strategy. Temu extends China’s group-buying model to overseas consumers. Consumers increase their bargaining power by sharing volume discounts in groups. This complements the aforementioned referral program, which offers discounts to consumers who bring new customers to the app and enables a shared shopping experience
5. Internet celebrity marketing advertising
Similar to Shein’s strategy of co-marketing with influencers, Temu also gives away free merchandise to a large number of influencers and promotes Temu on YouTube and TikTok. Temu is particularly appealing to younger users under the age of 35 because younger consumers are often less able and unwilling to pay high prices for products. Seeing a favorite Internet celebrity or acquaintance promoting a product can make many young customers copy the purchase. Temu’s influencer marketing strategy on TikTok and YouTube is also believed to be a key factor in Temu’s meteoric rise to fame.
Post time: May-22-2023