Temu launches in Thailand

Today (29 July 2024), Temu quietly launched in Thailand, marking its third market in Southeast Asia. 

This launch comes almost a year after entering Malaysia and the Philippines. As with previous market launches, Temu’s Thailand site features grand opening discounts of up to 90%.

Temu’s Thailand site offers a wide variety of cross-border goods with global reviews and ratings for popular items. Although there are rumours of Temu launching branded goods in Southeast Asia, most items on the Thailand site are currently unbranded.

According to the “Ecommerce in Southeast Asia 2024 report” report by Momentum Works, Thailand is the second-largest ecommerce market in Southeast Asia after Indonesia and has the second-fastest growth rate (after Vietnam), with a year-on-year growth of 34.1%.

Goods can be shipped by truck from Guangzhou to Bangkok, but not to Indonesia. The door-to-door delivery takes less than 5 days and costs slightly more than sea freight, which takes longer.

In 2023, Thailand’s ecommerce platform market was dominated by Shopee (49% market share), Lazada (30%) and TikTok Shop (21%). 

In the “Ecommerce in Southeast Asia 2024” report, we analysed Temu’s global expansion and noted that it will likely find a way to enter the rest of Southeast Asia, including the challenging Indonesian market. 

This expansion is expected soon, especially with Temu’s strong presence in the US and European markets, as well as its strong(er) financial footing. 

We don’t yet know how aggressive Temu will be in Southeast Asia. Their strategy is very ROI-driven and can change quickly. However, incumbent players, including platforms, brands, and enablers, need to prepare for strong competition.