by Corneel Vanfleteren
published on Monday, September 18, 2023 at 7:01 PM •
2 min read
The Chinese retail app Temu has also been available in Belgium for two weeks. Temu is characterized by a variety of products at dirt-cheap prices. Bart De Waele of the digital consultancy firm Duke & Grace explains the strategy behind it.
Listen to the full interview with Bart De Waele here:
Why is this important?
Temu is particularly popular with young people. By focusing on extensive marketing campaigns on TikTok, a target group is tapped that likes to pay as little as possible. Possible ethical objections then matter less. De Waele: “Temu connects Chinese producers to consumers all over the world. It uses something it calls reverse manufacturing. They mainly look at which products are popular and only place orders when it is fairly certain that there will be enough buyers. This means that producers only produce when they are certain of a sale, which reduces costs.” “Temu is a new app, but it is a daughter of the Chinese Pinduoduo. This has been a very successful Chinese e-commerce company for many years. It is now spending a lot, just to grab market share. Temu is selling under price. Due to the fact that it has a lot of visitors and buyers, it will also earn money from advertisements. People then earn as little as possible on the sale of the products themselves.” “Temu currently equates to very cheap and therefore questionable material. As a European producer you should not play that game. You are more likely to go for quality, security and reliability; which also comes with a different price tag,” says De Waele.
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2023-09-18 17:02:31
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