The parent company of Temu is Pinduoduo, which is a Chinese firm. Temu started its services in the US in 2022. It was launched on the Google Play Store and On the Apple Store. It offers heavy discounts and has expanded its business in multiple countries.
The reasons behind the success of Temu are its unbeatable prices and 250 plus categories of items. There are hard to resist offerings that include bonuses and points to redeem. They deal in beauty and baby products that you can buy under 1 dollar.
It is basically an e-commerce company that targets online customers. There are brands, merchandisers, and sellers that are also becoming their partners. With these collaboration tactics, it is gaining top positions in the world of online retail.
The company has its roots in China and is taking advantage of the low manufacturing costs. It employs multiple strategies to survive in the highly competitive marketplace. There are some other facts that you need to explore for information.
How Did the Temu App Start? – Historical Facts
Temu has launched its services in the year 2022. It offered massive discounts and started shipping the goods directly from China. It had the major advantage of cheap raw materials and was able to attract a large number of customers.
The app has now expanded its business in more than 49 countries and is selling the products at low prices. You can see its advertisements on social media platforms to gain traffic. The official account of Temu also has millions of views.
However, the business has also confronted criticism due to low quality products and service issues. It is still under observation due to these issues. There are allegations that are related to the mishandling of user data.
Apart from these issues, it has top download charts on the different online stores. They have launched an aggressive social media marketing campaign and also targeted millions of customers. There are products in multiple categories to buy online.
ALSO CHECK: How To Download TEMU App on Android?
Why is Temu So Cheap? What Everyone likes to know
People usually wonder about the motives behind the cheap selling of Temu. There is high competition in the retail market that makes it almost impossible to survive by selling products at Low prices.
For users who have a low budget, Temu is a great place to do shopping. There are TikTok Busters and other promotional schemes that we will debate in this section.
De minimis exception
The company is taking the benefit from the de minimis exception. It helps it to deliver the goods to the US from China at minimum costs. The app has found gaps in the shipping procedure and takes advantage of delivering products that are not taxed by US customs.
Low manufacturing costs
The retailer works with the local merchandisers in China. They prepare the products at a very low price. The manufacturing costs are the big reason for cheap products offered at this paltrow. Moreover, they also spent on publicity to entice new customers.
Knockoff products
The app uses the names of famous brands. There are some brands that sell the products with the closer name of famous brands. They use the original recipe but sell them at lower prices. That is why you will find the replicas on this platform.
Access To Supplier
Temu also cut down its costs by getting direct access to the suppliers. It does not engage the middleman between the suppliers but also helps them to cut down the prices. The low priced products are manufactured and delivered directly to the US.
Next-Gen Manufacturing Model
The company uses high-end technology to fulfill demand and orders. It optimizes the data from its parent company and utilizes it in its supply management. It makes sure that there is no overproduction and that orders are fulfilled accordingly.
Supplementary Features of Temu – Major Advantages
Temu is a game changer and offers competitive prices. There are other vendors in the market, but they offer high prices. So, the app has taken advantage of low prices and started its business online. Here are some key features of this brand.
Product Range
The main advantage of this app is that it delivers products in various categories. So there are fashion, home goods, electronics, and many other categories to search. Moreover, it also has some sub categories that are available to access.
Low Price
The prices are very low, and it has an effective supply chain management. In such a case this strategy works for Temu and it attracts the customers. They use economies of scale and sell maximum products in order to gain a competitive advantage.
Market Place
The app has a big marketplace to target. There are consumers from all over the world. It is now competing with Amazon and selling its products in more than 49 countries. The 250 plus categories make it a popular platform.
Data-Driven Approach
The app uses special analytics to capture the data of the consumers. It collects the data and uses it to create special offerings. For instance, they suggest some specific products to special customers. They make a valuable offer that no one can refuse.
Sourcing
The app is sourcing raw materials and other items from around the globe. They take advantage of the low costs and use the international supply chain to get the materials from China.
User Acquiring
The app invests in the marketing plans and creates strategies to increase its customers. It uses Omni channel marketing and gets customers from social media platforms. There are other challenges that it uses to increase the audience.
Monetization
Temu believed in working as a team. It generates revenue by offering monetization plans. Users can earn commissions and rewards. It has a referral program that will give you the maximum advantage of using this app.
Conclusion
The Temu office started operating in the US in the year 2022. It was launched in other countries and gained massive popularity. Millions of users are now utilizing this platform and getting the products in lower packages. There are certain other benefits, like referral programs and bonuses.
So the reasons behind its global popularity are numerous. But the users are mostly buying cheap products and admiring this retailer. It is offering the item for everyone. On the other hand, it covers most of the countries that are willing to shop online. The most dominating reason for its widespread use is its lower price strategy.
Muhammad Ahmad is a dedicated writer with 5+ years of experience delivering engaging and impactful content. He specializes in simplifying complex topics into easy-to-read articles.