Temu’s strategy to expand the U.S. market
Temu is an overseas business brand of China’s largest e-commerce platform Pinduoduo, which entered the Korean market in July 2023 and has been growing rapidly. Temu is attracting the attention of American consumers through its affordability, variety of products, and aggressive marketing strategies. Now, with AliExpress, Temu is expanding rapidly. Although it focuses on low-end products, Temu is selling all products and expanding the presence of Korean products as its nickname is China’s a low-cost discount store.
The background of Temu’s entry into the U.S. market
American Consumers’ Direct Purchase From China: American consumers are increasingly using Chinese direct purchases at low prices and to purchase a variety of products. Temu has entered the U.S. market by reflecting these market trends.
Pinduoduo’s Global Market Entry Strategy: Pinduoduo is in full swing entering the global market due to the saturation of the Chinese market and intensifying competition. Temu entered the U.S. market as part of Pinduoduo’s strategy to enter the global market.
Temu’s strategy to expand the U.S. market
Temu is moving away from the Chinese market and expanding not only in the United States and Korea, but also everywhere in the world. With its low price as a weapon, it is inducing consumers to purchase as the fastest growing shopping mall in the world through tremendous marketing.
1. a low-cost strategy
Temu is selling goods at low prices by working directly with Chinese producers to supply them.
Most products are sold at 30-50% cheaper than the distribution price in U.S., and some products are sold at up to 90% off.
2. Various product lineups
Temu offers a diverse lineup of products such as clothing, fashion, household goods, beauty, and electronics.
In particular, we sell a number of Chinese brand products that American consumers prefer.
3. an aggressive marketing strategy
Temu is raising brand awareness through various marketing activities such as TV advertising, online advertising, and SNS marketing.
It induces consumers to purchase through marketing using famous influencer and aggressive discount events.
4. American consumer customization strategy
Temu provides Korean websites and apps by identifying the needs of American consumers.
We operate a Korean language customer center to solve the inconvenience of consumers.
Concerns over Temu’s expansion of the U.S. market
Low-end Commodity Quality Issues: Quality issues are being raised for some low-end merchandise sold at Temu.
Negative perceptions of Chinese goods: Some consumers are reluctant to use Temu due to negative perceptions of Chinese goods.
Data Collection Concerns for Chinese Companies: Some consumers have concerns that Temu could collect data from American consumers and provide it to the Chinese government.
Temu’s prospects for expanding U.S. market
Temu is growing rapidly in the American market through its affordability, variety of products, and aggressive marketing strategies. However, there are also challenges to be addressed, such as low-cost product quality issues, negative perceptions of Chinese products, and concerns about data collection by Chinese companies. If Temu can solve these challenges and win the trust of American consumers, it is expected that it will be able to expand successfully in the U.S. market.