There is one app that has been consistently downloaded by users in large numbers in recent weeks that is not Tiktok, Youtube or Instagram. It is the shopping app Temu. The question is, what is Temu and why is it creating a shopping frenzy in communities around the world ?
How does Temu work and who owns it?
Temu is an e-commerce platform that has seen rapid growth since its launch in September 2022, operating like Amazon or other major online retailers.
Temu is officially incorporated in the state of Delaware, headquartered in Boston, USA, but its parent company is the global commerce group PDD Holdings, owned by Chinese billionaire Colin Huang, 44, based in Shanghai, China. PDD Holdings also operates another e-commerce platform in China called Pinduoduo. In 2023, PDD Holdings moved its headquarters to Dublin, Ireland.
Late last year, PDD Holding's market capitalization surpassed Chinese giant Alibaba to become the most valuable US-listed Chinese company.
According to Forbes, Temu sells a wide range of products directly from Chinese suppliers at extremely low prices, sometimes as much as 99% off through flash sales. Temu’s model relies on keeping costs low by connecting consumers directly with suppliers and handling only the shipping to customers.
In fact, Temu’s sister e-commerce giant Pinduoduo has been offering similar deals in China for the past few years. Pinduoduo has found success in China by selling heavily discounted products directly from manufacturers to low-income shoppers, as well as agricultural products to farmers.
How wide is Temu's "coverage"?
The first market that Temu “took over” was the US. According to TIME, just 2 months after its launch in September 2022, Temu surpassed Tiktok, Youtube, and Instagram in terms of downloads on the App Store and Google Play. According to Marketplace Pulse, the Tamu app has held the top spot every day for nearly 2 years in the US. Currently, this app is number 1 in most of the countries where it operates.
Temu is present in many countries in Europe, Asia, North America, even Africa and Latin America. Since August 2023, Temu has been present in the Philippines, starting its journey to Southeast Asia. Currently, Temu is present in Malaysia (September 2023), Thailand (July 2024), Brunei and Vietnam (October 2024).
According to Statista, as of October 9, 2024, the download market share of the Temu shopping app was the highest at 31% in the US, followed by Brazil with 29%, Mexico 10%, UK 5%, France and Germany 4%, Philippines 3%.
According to SimilarWeb, Temu.com has nearly 700 million monthly visits. Temu operates in 79 countries. Temu's sales are mainly from the app, not the website. Temu aims to reach $60 billion in sales by 2024, with the ambition to become the company second only to Amazon in the US and No. 1 in Europe.
Why is Temu banned in Indonesia?
Temu was banned in Indonesia because the government of the "land of thousands of islands" said allowing Temu to operate would cause cheap goods to flood into the country and stifle domestic small and medium-sized enterprises.
Indonesia will maintain its ban on Temu over concerns that the e-commerce platform could disrupt the operations of the country’s micro, small and medium-sized enterprises, according to Indonesian Minister of Communications and Informatics Budi Arie Setiadi. An official from Indonesia’s Trade Ministry stressed that Tamu’s business model of selling products directly from factories to consumers goes against Indonesia’s trade regulations that require intermediaries or distributors.
In the European market, Temu could also face strict content moderation regulations from the European Union (EU) as well as oversight from the European Commission, as 75 million Europeans visit the site each month. The EU is questioning Temu on its approach to consumer protection risks, public health risks and user health risks to ensure that Tamu complies with the Digital Services Act.
Despite having the highest download share in the US, Temu is also facing increased scrutiny in the US. In September, the Biden administration said it would move to limit duty-free entry for low-value shipments under $800 into the US.
TIME quoted Schmidt, a security and privacy expert at Vanderbilt, as saying that if more American consumers flock to Temu’s low-cost goods, it could pressure Amazon (which currently holds a near-monopoly in e-commerce in the US) and other competitors to lower prices, which would impact wages. He also added that manufacturers of goods would have to further cut their costs and profit margins, which would erode domestic manufacturing.
Speaking on the sidelines of the 8th Session of the 15th National Assembly , Deputy Prime Minister Ho Duc Phoc said that the cross-border e-commerce platform Temu must pay taxes like Google, Facebook... and requested the General Department of Taxation to review Temu's tax registration and payment. In case Temu does not pay taxes, the management agency will inspect and handle it. Minister of Industry and Trade Nguyen Hong Dien has also just issued a document directing units under the Ministry to strengthen state management of e-commerce. Specifically, it is necessary to strengthen communication and guide consumers to be cautious when shopping online on cross-border e-commerce platforms; advise on research on plans to monitor and manage imported goods circulating through e-commerce platforms that do not comply with Vietnamese law... |
Source: https://baolangson.vn/temu-va-nhung-dieu-can-biet-5026521.html
Comment (0)