The impact of Temu on Thailand’s e-commerce market remains unclear

[webfact]

FILE photo

 

Chinese e-commerce giant Temu's entry into Thailand is causing a stir, but its long-term impact on the local market remains uncertain, according to a study by market analytics firm Cube Asia. Sellers brace for potential price wars, similar to shifts seen with competitors like Shopee, Lazada, and TikTok Shop.

 

Simon Torring, co-founder of Cube Asia, notes that Temu, the cross-border platform of China's PDD Holdings, launched in Thailand last July, following its expansions in the Philippines and Malaysia in 2022. The platform has already made significant strides in Western markets, notably in the US, where it recently surpassed Amazon in app downloads. In less than two years, Temu entered 70 global markets.

 

Temu's competitive edge lies in its low-price strategy, directly linking Chinese manufacturers with global buyers, contrasting with Shopee and Lazada, which feature official brand stores. However, Cube Asia found that Temu’s fierce pricing advantages may not always hold up.

 

Research shows Temu's product range is largely unbranded, marked by a blue check for verified sellers. Yet, only 12% of Temu’s products fall into this verified category, mainly electronics and gadgets.

Initial price competitiveness studies revealed that three out of five products on Temu were more expensive than those on Shopee, Lazada, or TikTok Shop. Discounts on Temu often appear attractive due to high list prices, with subsidies like first-order incentives and free shipping, faced with stiff pricing competition from local rivals.

 

In direct price comparisons, Temu was the cheapest for only two out of five items. Other platforms, like Shopee and Lazada, also provide direct shipments from China, mirroring Temu’s model.

 

Temu’s cross-border approach, though successful globally, faces stiff competition in Southeast Asia with established players like AliExpress, Amazon, and Shein. Torring highlighted that shifting customer loyalty could prove challenging, as regional consumers are accustomed to low-priced Chinese goods on existing platforms.

 

Temu aims to woo these consumers with added discount coupons and special deals, intensifying short-term competition. The broader impact of Temu on the regional e-commerce scene remains to be seen, yet the existing competition shows no signs of waning, adding complexity for both sellers and consumers.

 

-- 2024-09-05

 

 

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[hotchilli]

4 hours ago, webfact said:

Chinese e-commerce giant Temu's entry into Thailand is causing a stir, but its long-term impact on the local market remains uncertain, according to a study by market analytics firm Cube Asia. Sellers brace for potential price wars, similar to shifts seen with competitors like Shopee, Lazada, and TikTok Shop

Welcome to the new way of the world.... evolve or go.

[RichardColeman]

Everything I have seen on Temu is twice or three times more than what I see on shoppee , but FB are drowning my FB now with Temu 

[Colabamumbai]

1 hour ago, RichardColeman said:

Everything I have seen on Temu is twice or three times more than what I see on shoppee , but FB are drowning my FB now with Temu 

Dog bark collar 363 Bhat free delivery Temu. Shopee 750.plus, plus shipping. Amazon 1500 Bhat plus shipping. Works well. 

[it is what it is]

11 minutes ago, Colabamumbai said:

Dog bark collar 363 Bhat free delivery Temu. Shopee 750.plus, plus shipping. Amazon 1500 Bhat plus shipping. Works well. 

 

if it's exactly the same product...?

[pacovl46]

I'll never understand why people buy from Temu because given their prices the quality you'll get can only be of the lowest grade. 

[BritScot]

It's going to decimate shopping in Thailand. Thai's both small business and manufacturing will suffer big time. This is all their plan. Thailand should ban all Chinese direct Internet sales.

[Scouse123]

I have just had a fairly small delivery.

 

It took quite a while to arrive. The goods are passable, not exceptional.

 

I don't think I will be bothering again.