Temu's Takeover: Thai E-commerce Expert Issues Price War Warning

[webfact]

 

The Thai e-commerce landscape is about to face a major upheaval, warns Pawoot Pongvitayapanu, CEO of Creden.co and PaySolutions. Speaking on Krungthep Turakij’s Deep Talk programme, Pawoot cautioned that the arrival of the Chinese online retail giant Temu could spell trouble for local retailers already battling fierce competition.

 

Pawoot highlighted that while Thai consumers are already familiar with cheap Chinese goods via platforms like Shopee, Lazada, and TikTok Shop, Temu’s direct-to-consumer model presents a new level of disruption.

 

“Temu offers Chinese products directly to Thai buyers, bypassing middlemen, with the added lure of Thai language support, local currency transactions, free shipping, and a money-back guarantee.”

 

Temu’s discounts, reaching up to a staggering 90%, are set to intensify the already cut-throat price wars.

 

Local retailers are already feeling the pinch from platform fees and profit shares, which are unregulated and rising. The entry of Temu could push small businesses to the brink, unable to compete with the low prices of Chinese manufacturers.

 

Pawoot foresees a grim future for domestic manufacturing and related industries, predicting factory closures and job losses as demand shifts towards cheaper imports.

 

In response, Pawoot expects market leaders like Shopee and Lazada to ramp up promotions and enhance logistics to hold onto their customer base. These platforms may also pivot towards showcasing unique Thai products to stand out from Temu’s Chinese offerings.

 

Pawoot urged local retailers to innovate, suggesting partnerships to enhance after-sales service, brand building, and leveraging AI to boost sales. He also called on the government to tighten regulations, preventing substandard Chinese goods from flooding the market.

 

In related news, Chinese electric vehicle (EV) manufacturer BYD recently opened its inaugural Southeast Asian factory in Thailand, garnering considerable attention and praise for the country’s industrial foresight.

 

However, this development also adversely affected long-established Japanese automakers, leading to a ripple effect across numerous Thai factories.

 

Temu's Takeover: Thai E-commerce Expert Issues Price War Warning

Stock image courtesy: Thai Rath

 

-- 2024-08-02

 

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[tomazbodner]

As there was some major controversy about TEMU app in Europe, calling it spyware, malware and worse, I wanted to share this article which tells a bit more on safety of using it. In case anyone is considering to install it. In a gist - it's not as bad as it's been reported to be by those who wanted company's stock price to crash and burn, but still has some permission demands that raise eye brows, and an ability to execute code that bypasses any security scanners. Most complaints were over their China-only version of the app.

 

https://www.comparitech.com/blog/vpn-privacy/how-safe-is-temu/

[happysoul]

Might not be fair competition for local businesses but who said life is fair.

 

Whatever, Temu, please remove this item for Thai market :

 

https://www.temu.com/th-en/multifunctional-car-steering-wheel-table-tray-g-601099522811409.html?_oak_mp_inf=EJHMoJym1ogBGiA1YzIyZjVhM2M3NTY0YWIwYjJhODQ0MWU2MDMxMTI3NyC93sOGkTI%3D&top_gallery_url=https%3A%2F%2Fimg.kwcdn.com%2Fproduct%2FFancyalgo%2FVirtualModelMatting%2F277f24edc7696151c4f60833cfc65cfd.jpg&spec_gallery_id=2021776170&refer_page_sn=10032&refer_source=0&freesia_scene=1&_oak_freesia_scene=1&_oak_rec_ext_1=MTU3MDA&_oak_gallery_order=199462454%2C119751091%2C1982911461%2C1072294125%2C1130180626&refer_page_el_sn=200024&refer_page_name=goods&refer_page_id=10032_1722564050045_gfcob0ykop&_x_sessn_id=g4oxrkrred

 

😁

[gargamon]

Temu is a much worse alternative to AliExpress, shoppee, lazada. They have very limited choice compared to the alternatives. Their business model appears to be buy bulk of certain items and that's all you get to choose from. I did a couple of orders to Canada and none of the items seemed to be high quality.

[Lorry]

1 hour ago, tomazbodner said:

As there was some major controversy about TEMU app in Europe, calling it spyware, malware and worse, I wanted to share this article which tells a bit more on safety of using it. In case anyone is considering to install it. In a gist - it's not as bad as it's been reported to be by those who wanted company's stock price to crash and burn, but still has some permission demands that raise eye brows, and an ability to execute code that bypasses any security scanners. Most complaints were over their China-only version of the app.

 

https://www.comparitech.com/blog/vpn-privacy/how-safe-is-temu/

They don't profit from the prices of the cr@p sold. 

So what's the business model?

Spyware (I wouldn't want "code that bypasses any security scanners")?

Some say they grab your data for advertising, and that's the business model.

 

No time to think about it, I must hurry to buy a multi-functional mouse-trap that can also be used as a stereo receiver or as a bum gun, 99 Baht.

[malathione]

2 hours ago, Lorry said:

They don't profit from the prices of the cr@p sold. 

So what's the business model?

Spyware (I wouldn't want "code that bypasses any security scanners")?

Some say they grab your data for advertising, and that's the business model.

 

No time to think about it, I must hurry to buy a multi-functional mouse-trap that can also be used as a stereo receiver or as a bum gun, 99 Baht.

Is that your assumption or have you bothered to go through their audited accounts? Being that their parent company, PDD, is listed on NASDAQ, you could read that before you spout your nonsense.

[hotchilli]

4 hours ago, webfact said:

“Temu offers Chinese products directly to Thai buyers, bypassing middlemen, with the added lure of Thai language support, local currency transactions, free shipping, and a money-back guarantee.”

Chinese just doing business, Thailand has to adapt or die

[Kerryd]

Keep in mind that as of 2 July 2024 (a month ago now) Thailand is supposed to be charging VAT on everything shipped from China valued at under 1,500 baht.

(Got to believe that they are already charging VAT on things over 1,500 baht ? Would seem really odd if you ordered something for 1,495 baht and got dinged 7% VAT but if it was 1505 baht there'd be no tax.)

I haven't really been paying attention to the taxes on Lazada or AliExpress. I just set up a couple cheap and a couple expensive items on Lazada and all it tells me is VAT is included "where applicable".

Had a look at TEMU. Looks like a knock-off of AliExpress in many ways. Lacking in product details on many of the items I looked at. You have to scroll through the pictures and hope they have the information you need.

Looks like they have the same lame default search filters as AliExpress and Lazada as well where they give you results for every word you put into the search regardless of category.

For example, I searched for motorcycle helmet. It gave me results for wall mounted helmet holders, "motorcycle running shoes", reflective "hello kitty" decals (that I guess can be used on cars or motorcycles), tube "neck socks" you can wear "under a helmet", safety helmets and so on.
And that was even when you picked the category of "motorcycle helmet" !

(Amazon uses the default "and" function so if you put "modular motorcycle helmet" it will only generate returns on listings that contain all three words. On Lazada and AliExpress and Temu, they use the "or" function so they generate returns on any listing that has one of those words in it. I think the idea is to give you a massively huge number of returns so you see items that are totally unrelated but "hey, that one looks interesting, maybe I should click on it".)

And as far as Lazada is concerned, half (or more) of their vendors are people running shops out of their living rooms/apartments or their stall in whatever market. When you place an order, they go online to AliExpress (or wherever) and order the item and have it shipped to you.

I generally track my orders, especially if they are expensive or fragile. Clothing and books, don't care if they toss them through the gate. But a camera or special "double-wall" drinking glasses - I like to be there to receive them.

And when I track the orders, it's rarely a surprise to see it's being shipped from China. And has to clear China Export Customs. Then arrive and clear Thai Import Customs, then get transferred and delivered.

Probably 90% of the stuff I order from Lazada seems to come from China.

USB powered digital alarm clock ? Shipped from China.
Non-slip floor mat ? Shipped from China.
Aluminum Grease strainer pot - shipped from China.
Leatherette Passport Holder - shipped from China.
Plastic A4 sized document protectors - shipped from China.
Tent poles, canvas bags, clothing, electrical parts - all shipped from China.

I've even selected "local" as the point of origin, which is supposed to limit the vendors to those that have stock and ship from Thailand, only to see the item is still being shipped from China.

I think the only people that are going to have competition from Temu are AliExpress and Alibaba, though Alibaba is more of a "business to business" site than a "single item to a single customer" kind of retailer.

[PETERTHEEATER]

3 hours ago, Lorry said:

They don't profit from the prices of the cr@p sold. 

So what's the business model?

Spyware (I wouldn't want "code that bypasses any security scanners")?

Some say they grab your data for advertising, and that's the business model.

 

No time to think about it, I must hurry to buy a multi-functional mouse-trap that can also be used as a stereo receiver or as a bum gun, 99 Baht.

Make sure you select BG when using it in bidet spray mode. The default MT (Mouse trap) could result in testicular injury. 😀

[Photoguy21]

Of course they will try to undercut competitors, it is called business.

[nakhonandy]

This is probably the worst of the cheap Chinese online retailers, really shoddy products.

[Lorry]

2 hours ago, malathione said:

Is that your assumption or have you bothered to go through their audited accounts? Being that their parent company, PDD, is listed on NASDAQ, you could read that before you spout your nonsense.

Audited accounts of a Chinese company. An oxymoron.

You mean audited like Enron or Lehman or FTX?

[Lorry]

2 hours ago, PETERTHEEATER said:

Make sure you select BG when using it in bidet spray mode. The default MT (Mouse trap) could result in testicular injury. 😀

Thx for the warning, I will try to remember this. 

I ordered it because it can work as a ghetto blaster (GB) and a BG simultaneously! All my life I have been looking for something like that.

[malathione]

14 hours ago, Lorry said:

Audited accounts of a Chinese company. An oxymoron.

You mean audited like Enron or Lehman or FTX?

So it's just your barstool assumption then. I understand.

[Lorry]

3 hours ago, malathione said:

So it's just your barstool assumption then. I understand.

If you would have been able to read my   whole post...

But I guess by line 3 alcohol levels were too high to continue reading.

 

I am now busy with my new musical bum gun from Temu.

Do you know why it keeps playing "Shake it off"?

[patman30]

and once the railway is operational
it is all over for Thai sellers currently reselling Chinese goods

[john donson]

i did not know them, thank you for the free publicity...

[TimBKK]

Original, non-plagerized story https://www.nationthailand.com/news/general/40040183

[VincentRJ]

I'd never heard of Temu before reading this news item. Out of interest, I did a Google search for Temu Australia on the internet, and found the Temu-Australian site with lots of different products at amazingly low prices, including free shipping. So I ordered a few items, less than A$100 in total, to check on their reliability.

[Lorry]

BP today: Srettha sees nothing to worry about. So there is nothing to worry about. 

Remember, BP Jul 30: Temu will compete with "local e-retailers" shopee (founded by Singaporean Chinese, biggest shareholder used to be Tencent from China), lazada (owned by Alibaba from China) and Tiktok (Chinese).

 

[GammaGlobulin]

Sorry.

This will not affect me.

 

They can keep their garbage.

I am completely reformed of my bad habit, and I will not be buying on-line.

 

Lazada still owes me around Bt.4,500, I think, for products that I returned in the past, up to 5 years in the past, I think.

 

I want that money, my money, returned to me.

 

Then, I will shop only at stores located on solid ground, in CM, from here on in.

 

I do not wish to reward shoddy suppliers, some of which can be found online.

 

Also, I like to get out of my house and, on a rare occasion or two,  actually see other people, in person.

 

See you all,...

At the Mall.

 

 

 

[Lorry]

On 8/2/2024 at 9:01 AM, tomazbodner said:

As there was some major controversy about TEMU app in Europe, calling it spyware, malware and worse, I wanted to share this article which tells a bit more on safety of using it. In case anyone is considering to install it. In a gist - it's not as bad as it's been reported to be by those who wanted company's stock price to crash and burn, but still has some permission demands that raise eye brows, and an ability to execute code that bypasses any security scanners. Most complaints were over their China-only version of the app.

 

https://www.comparitech.com/blog/vpn-privacy/how-safe-is-temu/

This is what my current browser lets through from the international version.

Note: I am nor especially security- conscious 

Just another Chinese spyware (remember Tiktok?)

[tomazbodner]

8 minutes ago, Lorry said:

This is what my current browser lets through from the international version.

Note: I am nor especially security- conscious 

Just another Chinese spyware (remember Tiktok?)

Pinduoduo which is the former name of company, now PDD Holdings is the app most complaints are about. It is only used inside China. Similar to Tik Tok, there are China-only and global app versions.

[connda]

What I find amazing is that as some corporations become highly efficient at being able to offer consumers lower priced products, those who can't compete throw a hissy fit and demands that their government adds tariffs which in turn just ****s the consumers. 

[connda]

On 8/2/2024 at 1:03 PM, hotchilli said:

Chinese just doing business, Thailand has to adapt or die

Chinese just doing business, and the rest of the world which is unable to compete has to impose tariffs which negatively impacts their domestic consumers because their domestic manufacturers can't compete against the Chinese on the global stage.

If Thailand actually plans to join BRICS, they better get a grip on the fact that imposing tariffs on member states sort of goes counter to the goals of the economic union. 

[Celsius]

there are no 90% discounts, just the usual junk worth between a nickel and a dollar