Temu - Witness the Birth of a Brand

There are many opportunities to build a consumer packaged goods business in this era. Social media platforms such as Facebook, Twitter, Instagram, and YouTube have created organic distribution channels for brands. Online users can easily learn about the products they wish to buy, and businesses can identify their target consumers there. Many e-commerce firms have been created recently, with TikTok continuing to expand its overseas business and experimenting with cross-border sales. Amazon has benefited from its high market coverage rate and the range of items it offers. Temu, an overseas brand of the successful Chinese domestic group Pinduoduo, was launched in the US market on September 1st this year. However, some industry insiders criticized Temu for being too late to enter the market and having too many competitors. Despite these criticisms, Temu managed to top the IOS download list in less than two months.

Temu is a company that is growing quickly. Pinduoduo's user growth in China is already pretty close to the maximum and the growth rate is weak. On the other hand, the low entry rate of cross-border e-commerce also attracts brands to try a different business mode. More importantly, many of the world's major markets haven't yet seen the emergence of e-commerce giants at the lower end of the market (low-priced goods). In addition, global consumption is slowing because of inflation, which fits with Temu's pricing strategy exactly. Temu's slogans "Team up" and "Price down" mean that the more people buy, the cheaper it will be, which appeals to overseas consumers who have no money in their pockets. Temu is often compared to SHEIN for its cost-effective approach. It is similar to SHEIN in terms of its main market, price positioning, and unified delivery on the platform. Temu is clearly well prepared to go its own way, learning from the experience of its predecessors.

Opponents Will No Longer Be Existing in the Face of Absolutely Low Prices.

Temu has sold more than 60,000 pieces of wireless Bluetooth headphones for $3.70, 45,000 pieces of slippers for $3.69, 20,000 pieces of eyebrow pencils for 54 cents, and garbage bags for 18 cents. Not just small items, but clothes and shoes that cost about $3 or $4 have been sold on the Temu homepage. "The sound quality of headphones is even close to Beats. I want to buy one at this price" a US customer wrote in the review. At the beginning of its launch, Temu introduced a one-cent free shipping zone, a 30 percent discount, and free returns to attract new customers. Consumers were shocked by the low price of Temu, with one posting on a social networking site saying, "You can make money just by buying it and reselling it on Facebook."

New Reward System.

At the beginning of the launch of Temu, it didn't copy the game "cutting a knife" exactly. But it was similar, where you invite friends to bargain for the price of products. Also, old users get a 20-dollar bonus if they pull two new users to download Temu through the sharing link. The simple and crude temptation has created an amazing fission effect.

Social Media Marketing.

Temu's success is due in part to their social media marketing strategy. They launched a try-on haul on TikTok and US influencers to quickly build brand awareness and increase brand voice. With offline stores closed due to the pandemic, consumers are increasingly relying on online shopping. Cross-dressing and unboxing videos have a great impact on consumers' purchasing decisions and are also an important way for consumers to "plant grass" with new brands. Reading this, do you feel the charm of Temu? Not only as consumers, receive the advantages of the product, but also as a marketer, observe the brand-building sense and the wisdom behind it. Find more marketing cases on our blog. We are Tribu, a professional marketing, advertising, and design agency!