Temu Dives Into Southeast Asia, Takes On TikTok Shop And Alibabas Lazada
PDD-owned Temu quietly debuted in the Philippines last weekend as the top destination in Southeast Asia. Temu brings this shopping app to compete with similar apps in China namely Lazada and TikTok Shop.
Why it matters: Temu's expansion into Southeast Asia is expected to fuel the region's e-commerce sector with its aggressive marketing strategy, even as the country's big players are already gaining market share. enviable
Details: Since launching in the United States last September, Temu has reached consumers in 38 countries on six continents with products made in China.
- In keeping with its "Shop like a billionaire" advertising tagline, Temu has entered the Philippines with deep discounts and free shipping, with most products on local sites priced between PhP 50 and PhP 1,500 (between $0.88 and $27).
- Based in Boston, Temu works closely with a number of third-party logistics providers for local deliveries. In the case of the Philippines, Chinese newspaper Jiemian reported that Indonesia-based J&T Express would oversee long-distance logistics.
- Like its main competitor Shein, Temu uses the Chinese supply chain network to offer products at very low costs to international customers.
- An earlier report by local media 36Kr quoted sources as saying that Temu's overall leak rate was around 60%, compared to Shein's four consecutive years.
Context: Southeast Asia's relatively low e-commerce penetration rate makes the region highly attractive for Chinese e-commerce companies, especially as they face slowing domestic growth.
- Lazada, the online shopping platform that received a $1.1 billion investment from its parent company Alibaba this year, reported double-digit order growth in Southeast Asia in the June quarter. The Alibaba International Digital Commerce Group, of which the company is a part, grew revenues 41% year-over-year, making it one of the Chinese tech giant's top-performing segments.
- TikTok plans to invest "a billion dollars" in Southeast Asia over the next few years, company CEO Shou Zi Chew said in June, as the ByteDance-owned short-video app gains more control in the States. United. Recent research by venture capital firm Momentum Works estimates that TikTok Shop will capture 13.2% of the e-commerce market share in Southeast Asia this year. This indicates that it is closing the gap to Lazada, which is expected to have a 17.7% market share this year. region in 2023.
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posted by Admin @ August 29, 2023
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