When market research platform Momentum Works released its "Who is Temu" report in February 2023, the e-commerce newcomer was still relatively unknown.
But until now, Temu Present in 78 countries and territories, not including Vietnam.
The full consignment model that Temu pioneered is being copied by competitors including: AliExpress, Lazada, Shopee and now Amazon.
Although not officially announced in Vietnam, Vietnamese users can go to the app stores on their phones to download the app and make purchases, pay on the Temu platform with the Vietnamese version. Just wait 4-7 days for delivery, free shipping.
More than a year ago, the platform began expanding into the Southeast Asian market, first to the Philippines and Malaysia.
Temu started delivering in Thailand in July 2024. In just two years, the platform has expanded globally with a fully consignment model.
This means that suppliers will agree on a price and send the goods to Temu's warehouse and Temu handles everything else, including: pricing, marketing and after-sales service.
The full consignment model (for non-branded goods) gives Temu better control over different parts of the value chain, such as product quality and user experience.
From a starting point of zero in early September 2022, Temu's monthly gross merchandise value (GMV) has grown to around $4 billion by mid-2024, according to aggregated data.
Although PDD Holdings, Temu's parent company, does not disclose financial details of its business units, some investors and analysts believe Temu may have reached, or very close to, break-even.
As a new player, Temu can build a platform from scratch with a new model without being bound by the existing structures and legacies that long-standing competitors are facing.
By evolving its supply chain and operating model based on market demand and conditions, the platform can optimize profits while serving the needs of its customers. consumers.
Temu is in full deposit mode, but will likely not hesitate to switch if necessary.
E-commerce Cross-border shopping is making it easier for consumers to get great deals.
The speed, convenience and cheapness of Chinese goods on the country's cross-border e-commerce platforms have threatened domestically produced goods.
Ms. Phuong, a small business owner, said that before international platforms were not allowed to retail to Vietnamese users, she often imported goods to sell. Since Shein, Taobao and recently Temu appeared in Vietnam, trading has become more difficult.
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