Free shipping and absurd prices: the rise of Temu

If you’re an avid user of apps like Shein or AliExpress, you’ve probably heard of Temu. The Chinese online shopping app is taking the world by storm, but it also raises questions about the legitimacy of its items and its inexplicable prices. What makes Temu so special?

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Temu ventured into foreign waters in 2022 when it was launched in the United States. In recent months, we have also witnessed the app’s arrival in European territory, including Australia and New Zealand. In no time, Temu has become a regular in the top charts of most downloaded applications. The appeal of Temu is evident: in a context of inflation where prices keep rising, Temu’s offers stand out as a very interesting alternative.

If we delve into the platform, we can find a multitude of bargains, such as wireless headphones for less than 6 euros or even smartwatches for less than 20. Quality aside, its constant bombardment of offers and low prices make more than one person fall for Temu, and rightfully so. However, this has not spared the app from controversies.

As of today, Temu is embroiled in a legal battle against Shein, another popular sales application. Both companies have sued each other for alleged monopolistic activities. Temu accused Shein of signing exclusive contracts with suppliers, something that, according to them, would harm the platform’s growth. Similarly, Shein also claimed that Temu was impersonating them to deceive consumers.

Regardless, Temu is clear about its strategy. According to Ivy Yang, founder of Substack Calling the Shots and Wavelet Strategy, Temu is ‘focused on grabbing customer attention’ and ‘selling products as cheaply as possible.’ To achieve this, the orange platform invests a whopping nearly $500 million every quarter in promotions and marketing.

Among its tactics are gamification in shopping, reward systems, countdowns, and more. When we enter Temu, we are exposed to a sensory bombardment designed to ‘seduce‘ the potential buyer.

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