When Momentum Works published “Who is Temu?” in Feb 2023, the newcomer in global ecommerce was not well known, let alone understood.By this month, it has been 2 years since Temu first launched in the US. As of 1 Sep 2024, Temu is available in 78 countries and territories (as of 1st Sep 2024). The full consignment model Temu pioneered is being copied by rivals including AliExpress, Lazada, Shopee, and now Amazon. Temu has achieved a lot in a very short period of time. How have they done that? How will Temu evolve moving forwards? What should incumbent ecommerce platforms and everyone in the ecosystem do in response to Temu’s rise?Today, we are happy to release Momentum Works Temu: 2 years on report. This report offers in-depth insights into Temu’s rapid growth and global expansion, its unique company culture and value chain that made its growth possible, and the impact Temu has had on the global ecommerce ecosystem.Find out the above insights, and more by purchasing the Temu: 2 years on report, available at US$42.95. You can download the full report here.The 52-page report covers the following sections:Introduction & overviewTemu has come a long way … in a very short period of timeTemu’s global presence as of 1 Sept 2024Temu might be very close to, if not already becoming, self-sustainingThe mixed feelings towards Temu2. Temu’s cold start logicTemu decided to start with full consignment – a heavier but safer choiceWhy full consignment?A comparison of marketplace vs full consignment models, circa 2022Pinduoduo started with a similar logic in ChinaFull Consignment: Not the whole story of Temu, just a stage in its evolutionPDD has shifted battle-hardened executives of Duoduomaicai to focus on Temu3. Temu’s company cultureThe culture of PDD (Temu & Pinduoduo) is uniqueControl, not context sets PDD apart from its peersTemu’s Super Bowl debut: case in point of decision-making & execution efficiencyA few anecdotes of Temu’s culture4. Temu’s value chainTemu pioneered full consignment model amongst cross border platformsTemu’s consignment models inspired many other platforms to create their own versionsKey components of the cross-border ecommerce ecosystemTemu’s relationship with suppliersCrucial question: Why do suppliers want to sell through Temu?Why do consumers keep buying from Temu?Temu’s relies heavily on third-party logistics to deliver the parcelsTemu has been exploring options to improve shipping efficiency5. Temu across the worldSame business model of cross-border sales, adapted approach to fit different markets6. Is Temu sustainable?PDD is not over-stretching its resources to operate TemuIn fact, PDD seems to become more efficient since Temu launchWhy does Temu contribute more revenue than GMV to the group? Risks and challenges ahead7. What should incumbents do?Does Temu pose a threat to Amazon and other incumbents? Alibaba’s internal bulletin board on 29 Nov 2023, just before PDD overtook Alibaba market capHow are incumbents responding to Temu’s (potential) threat?8. Conclusion & perspectivesSome highlights of the report:Get your copy here! Related —Thanks for reading The Low Down (TLD), the blog by the team at Momentum Works. Got a different perspective or have a burning opinion to share? Let us know at [email protected].
