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:

  1. Introduction & overview
  • Temu has come a long way … in a very short period of time
  • Temu’s global presence as of 1 Sept 2024
  • Temu might be very close to, if not already becoming, self-sustaining
  • The mixed feelings towards Temu

2. Temu’s cold start logic

  • Temu decided to start with full consignment – a heavier but safer choice
  • Why full consignment?
  • A comparison of marketplace vs full consignment models, circa 2022
  • Pinduoduo started with a similar logic in China
  • Full Consignment: Not the whole story of Temu, just a stage in its evolution
  • PDD has shifted battle-hardened executives of Duoduomaicai to focus on Temu

3. Temu’s company culture

  • The culture of PDD (Temu & Pinduoduo) is unique
  • Control, not context sets PDD apart from its peers
  • Temu’s Super Bowl debut: case in point of decision-making & execution efficiency
  • A few anecdotes of Temu’s culture

4. Temu’s value chain

  • Temu pioneered full consignment model amongst cross border platforms
  • Temu’s consignment models inspired many other platforms to create their own versions
  • Key components of the cross-border ecommerce ecosystem
  • Temu’s relationship with suppliers
  • Crucial 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 parcels
  • Temu has been exploring options to improve shipping efficiency

5. Temu across the world

  • Same business model of cross-border sales, adapted approach to fit different markets

6. Is Temu sustainable?

  • PDD is not over-stretching its resources to operate Temu
  • In fact, PDD seems to become more efficient since Temu launch
  • Why does Temu contribute more revenue than GMV to the group? 
  • Risks and challenges ahead

7. 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 cap
  • How are incumbents responding to Temu’s (potential) threat?

8. Conclusion & perspectives

Some highlights of the report:

Get your copy here!

 

 

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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].