Launched in September 2022, Temu quickly became one of the most downloaded e-commerce applications in the United States. Quickly rising to become a popular shopping app across all generations, Temu would garner fans and consumers thanks to its wide range of products at seemingly wholesale prices, leading many shoppers to ask: is Temu simply too good, to be honest?
When the world shut down in 2019 due to the COVID-19 pandemic, many of the habits that we had developed over the years were forced to shift. No longer were we shopping in the same stores, eating at the same restaurants, or seeing friends as regularly as we were before. Online shopping would become pivotal during these troubling months, and it would cause many people to change how they approach the task.
During this period, Temu would open its doors with a collaborative approach to manufacturing in the e-commerce space, bringing lower prices than those at competitors like Alibaba and Amazon. How is Temu able to offer such low prices, and why are companies so interested in working with them?
Next Generation Manufacturing
How does a company like Temu rise out of seeming obscurity to compete head-to-head with such e-commerce giants as Amazon and Alibaba? The answer, as it turns out, relies on data analytics and next-generation manufacturing systems.
Reading the Temu website will reveal that the company relies on its ability to source products globally, managing complex supply chains and inventory management along the way. How does Temu do this on a level that makes a tangible difference? They remain a part of the product development process, utilizing analytics to help manufacturing partners along the way.
In this collaborative and next-generation approach to manufacturing, Temu works with its partners to provide them with data analytics that refers to search history, consumer insights, and other targeted marketing strategies. This analytic approach to developing products, hand-in-hand with a supplier, has set Temu firmly apart from other competitors in the space.
Benefits of Temu’s Approach
With Temu, sellers and buyers alike can find what they are looking for with less friction along the way. Sellers world directly with Temu to develop marketing strategies while eliminating waste in the marketing and manufacturing spaces. By finding the correct marketing approach, sellers can lower their prices while passing on the savings to their buyers, leading to more future sales.
The big bridge that Temu has to help shoppers cross is their distrust of lower-priced items. Value-seeking shoppers will find what they are looking for when they shop in Temu. Temu hopes to change the way that shoppers look at lower-priced products, embracing them instead of assuming that they are of poor quality.