TEMU, riding on the wind, where are you going?

What is the top event that happened in the cross-border circle in September?Then Pinduoduo’s cross-border e-commerce platform Temu was launched in North America on September 1st.

The introduction of Temu is Team Up, Price Down, which means 'the more people buy, the lower the price'.In order to gain fame, Temu often uses tricks.Temu, which carries Pinduoduo's DNA, still has its biggest advantage over other platforms in its simple and crude low price.

Temu

In addition, since its launch, Temu sincerely launched free shipping, 30% discount, and free returns at the same time:

30% discount:The 30% discount on the entire site is especially evident on the homepage of the official website.New users can enjoy this discount on their first three orders, which is a huge discount.

free shipping:Temu provides free shipping from September 11th to 14th, and you can get a full refund if your order is delayed.

Free returns:The first return fee for any order will be borne by Temu; and an order can be returned or exchanged multiple times within 90 days. The buyer only needs to pay a shipping fee of US$7.99, which will be deducted from the refund.

In addition, Temu has also launched the '1 cent pick 1' super-value promotion. Each account can spend 0.01 US dollars to choose a product on the event page, and the product is free before the 14th. The freight service is almost free!

Concerns about the current situation and future, as well as their own limited spending power, have made European and American consumers who were once known for their high consumption and insensitivity to prices now have to shop around, buy discounted products, and reduce expenses when shopping. shopping habits of most of them.

As can be seen from the above figure, the proportion of high-income households has always been below 20%. However, due to the impact of the epidemic, this proportion will further decline. The base of low- and middle-income consumer groups is larger. After the small amount is added up, these people will also It has huge cross-border purchasing power, which is the main reason why SHEIN is so popular in the United States.

In the past, the public’s understanding of brands such as ZARA, H&M, and UNIQLO was that they were cheap, new, and available in many styles. The emergence of SHEIN has pushed these three dimensions to unprecedented heights. This is also due to the complete integration of SHEIN. Supply chain system, which not only speeds up the speed of new products and inventory turnover rate, but more importantly, optimizes the cost space of each link.

Despite this, controversy over SHEIN also exists. As the saying goes, 'You get what you pay for.' How can low prices ensure quality? This has also become a weapon in the hands of some people who are not optimistic about SHEIN, but among the many It pales in comparison to low-income people, because SHEIN allows them to buy their favorite trendy products at affordable prices.

It is said that Temu is imitating SHEIN in terms of software design, operation and marketing methods. During the project preparation period, it even hired many SHEIN employees. It can be said that they are directly copying SHEIN's work. After all, SHEIN has proven that low prices are the key to success. The road works.Data speaks best. According to Temu news, during the internal beta period, orders for many hot-selling products have exceeded 1,000, further proving Temu’s huge potential.

Temu

For cross-border e-commerce sellers, the emergence of Temu is mainly used as these two channels:

01

Channels for clearing inventory:Many sellers have also thought of this and use Temu as a channel to clear inventory, transferring goods that cannot be sold on Amazon or other platforms to Temu for clearance.

02

Factory Transformation:It is difficult for ordinary traders to make big profits under a price war like Temu's, but for factory-type sellers, although the profit margin is low, it does not matter. As long as they can maintain production costs and labor costs, they can support workers in the off-season. Factories can also make indirect profits by selling overproduced clothing to other brands or customers. Furthermore, this easy-to-start path also makes it easier for small and medium-sized factories to transform from traditional foreign trade or cross-border e-commerce suppliers. seller.

It should be noted that sellers in Temu have no pricing power and only supply goods to the Temu platform. The platform will set prices and screen out suppliers with no advantages. At the same time, the current return model is a refund-only model. If there are quality issues, the platform will Suppliers will be fined five times.These seemingly uncommon routines also give factories a greater advantage in Temu, because they can maximize profits by controlling costs and quality, which traders and sellers do not have.Temu's supply model and low-price strategy are very suitable for factory-type sellers. If traffic increases in the future, it will be a good boon for factories.But if you are not a factory-type seller or do not have very strong supply chain resources, then Temu may not be suitable for you.

Summarize

★Perhaps due to the historical differences in development between China and the West, we are indeed still far behind Europe and the United States in some areas such as luxury goods, but this does not mean that Chinese brands have no opportunities!Don’t blindly pursue excellence, but look for the group of consumers who are your best match.

★ Looking at it now, it is too early to draw a conclusion as to whether Temu is a new outlet for going overseas or just has an additional channel to clear inventory.But if you are curious about Temu, you must come to the China Cross-Trade Fair (Autumn).It is reported that Temu's maternal and infant purchasing team and other teams have contacted the China Cross Trade Fair Organizing Committee and are interested in forming a team to purchase.Temu is here, so why do you have any hesitation?

China Cross-Border E-Commerce Fair (Autumn) (CCEF)

'Build a platform' to help enterprises explore the cross-border e-commerce market,

Actively find suitable ways to 'pave the way' for enterprises to go overseas smoothly

Exhibition time:November 25-27, 2022

Place:Guangzhou, China Import and Export Fair Complexorganizer:China Foreign Trade Center Group Co., Ltd., Foreign Trade Development Bureau of the Ministry of Commerce, Fujian Huiyuan International Exhibition Co., Ltd., China Foreign Trade Guangzhou Exhibition Co., Ltd.organizer:China Foreign Trade Guangzhou Exhibition Co., Ltd., Fujian Huiyuan Cultural Development Group Co., Ltd., Fujian Midoduo Network Technology Co., Ltd.co-organiser:Oracle(China)Software Systems Co., Ltd.,Hangzhou Fanjie Supply Chain Management Co., Ltd. (Fanding International Group),Fujian Zixun Information Technology Co., Ltd. (Purple Bird Browser),Zongteng Group,Dianjiang Technology SHOPLAZZA、Shanghai Xinggu Information Technology Co., Ltd.,MoonSeesMengxishi Information Technology,Noah's Fortune

Special cooperation units:Seller's Home, AMZ123

Exhibition introduction:

China Cross-border E-commerce Fair is a cross-border e-commerce fair organized to link Chinese manufacturing and global consumption, integrate the rapidly developing cross-border e-commerce ecological resources, and realize resource integration in the foreign trade, cross-border e-commerce and exhibition industries. , serving global trade and helping companies open up broader markets.The exhibition not only realizes the function of matching transactions, but also brings diverse platforms and full-chain services. Its value-added function is a differentiated advantage that other exhibitions of the same type do not have.With the theme of 'New Momentum for Foreign Trade·New Digital Future' and the positioning of 'Creating a national brand and platform for cross-border e-commerce to serve the innovative development of foreign trade', China Cross-border Trade Fair is committed to optimizing high-quality suppliers and cross-border e-commerce. cross-border e-commerce buyers and platform resources; upgrade high-end forums and activities to create the leading event in China's cross-border e-commerce industry.

Exhibition area distribution and exhibit categories (three major exhibition areas):

1

Cross-border e-commerce supplier exhibition area

Household daily consumer goods, 3C electronics and healthy living, gifts, stationery and cosmetics, shoes, clothing, textiles, bags, sports and outdoor categories, toys, maternal and infant pet products and comprehensive food, furniture and building materials, gardening hardware, lighting, automobile and motorcycle accessories.

2

Cross-border e-commerce comprehensive service exhibition area

Cross-border e-commerce platform, information consulting, logistics and warehousing, operation management system, payment platform, digital marketing, insurance and taxation, financial investment, talent training, cross-border institutions, industrial design, etc.

3

Cross-border e-commerce comprehensive pilot zone, cross-border e-commerce industrial park

Buyerssource:

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