September 21, 2023

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Experts warn that retail platform Temu is using dumping prices

Experts warn that retail platform Temu is using dumping prices

Chinese retail app Temu has also been available in Belgium for two weeks. Timo is distinguished by its variety of products and very cheap prices. Bart De Waele from digital consultancy Duke & Grace explains the strategy behind this.

Listen to the full interview with Bart de Waele here:

Why is this important?

Temu is especially popular with young people. By focusing on large-scale marketing campaigns on TikTok, a target group is chosen that likes to pay as little as possible. Hence potential ethical objections become less important.
  • De Waile: “Temu connects Chinese producers with consumers around the world. He uses something he calls reverse manufacturing. They basically look at popular products and only place orders when it’s fairly certain there will be enough buyers. This means that producers only produce when they are certain of a sale, which reduces costs.
  • “Temu is a new app, but it is the daughter of China’s Pinduoduo. This has been a very successful Chinese e-commerce company for many years. Now it is spending a lot, just to grab market share. Temu is being sold at less than the price. Due to the fact that it has a lot of visitors and buyers , they will also earn money from advertising. Then people will earn as little as possible selling the products themselves.
  • “Temu currently equates to a very cheap and therefore questionable material. As a European producer, you should not play this game. You are more likely to be looking for quality, safety and reliability; which also comes at a different price,” says De Waele.
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