One of the key elements to success in today’s competitive e-commerce market is developing and executing an effective business strategy. Temu, a fast-rising e-commerce platform, has five key core strategies and tactics behind its success that have helped it stand out from its competitors such as Shein, Wish, and AliExpress. These strategies are discussed in detail below.
1. Low Prices – Selling at a Discount.
The cornerstone of Temu’s business model is to offer low-priced products. This strategy is similar to its competitors such as Shein, Wish, and AliExpress, but Temu goes a step further. The platform often offers deeper discounts than other competitors, even selling some products for as little as 1 cent. This low-price strategy attracts price-sensitive consumers, making them more willing to shop on Temu, while also winning market share.
2. Efficient Logistics Network – Free Shipping and Returns.
Temu stands out in the e-commerce market by offering free shipping and returns. This advantage stems from Temu’s extensive network of cooperation with many suppliers and shipping partners. An efficient logistics system is essential to successfully operate an e-commerce platform, as logistics issues are considered the main obstacle that some competitors such as Wish have failed to successfully enter the Western market.
3. Shopping combined with entertainment – gamification experience.
According to research, about one-fifth of online shoppers in the United States said that they could not get an experience comparable to offline shopping when shopping online. Temu adopted the strategy of shopping combined with entertainment to fill this gap. The platform introduced various mini-games, such as card games, to allow consumers to participate in the interaction during the shopping process and win rewards. This not only prolongs the time consumers stay on the platform, but also increases the fun of shopping by releasing dopamine stimulation.
4. Build a network of friends and acquaintances to share shopping experiences.
To promote these games, Temu relies heavily on social recommendations, which is another of its core business strategies. The platform extends China’s group buying model to overseas markets, encouraging consumers to enhance bargaining power by sharing bulk discounts in groups. This strategy complements the shopping combined with entertainment tactics mentioned above. In addition, Temu’s referral program offers discounts to new customers, expanding its user base through social networks and achieving the goal of sharing shopping experiences.
5. Influencer Marketing Advertising – Leveraging social influence.
Similar to Shein, Temu uses an influencer marketing strategy to give away a large number of free goods to influencers on social media, such as bloggers on YouTube and TikTok. This strategy is particularly attractive to young users, who are usually cautious about expensive products. Seeing their favorite influencers or acquaintances promote products makes many young customers want to imitate and buy. Temu’s influencer marketing strategy on TikTok and YouTube is considered one of the key factors in its rapid rise to prominence.
In short, Temu’s success comes from its comprehensive strategies and tactics. By offering low prices, efficient logistics, shopping combined with entertainment, social recommendations and influencer marketing advertising strategies, Temu has successfully attracted a large number of consumers, especially young users. These core strategies have made it stand out in the competitive e-commerce market and laid a solid foundation for its future growth and development. Over time, Temu will continue to explore new and innovative methods to remain competitive and continue to grow its user base.