Are you a little tipsy today? (I’ve got you, my family!) In one year, Temu has expanded rapidly, with sites covering North America, South America, Oceania, West Asia, East Asia and other places. And now, Temu's "Israel Station" is about to be launched, and this is just the first shot in its entry into the Middle East. “ Temu enters the Middle East market The Middle East market has always been a hot spot for cross-border e-commerce, not only because of the high level of income in the Middle East, but also because of the high Internet penetration rate there. So Temu chose to launch in Israel first! However, Israel is still a little behind developed regions such as the UAE, Qatar, and Saudi Arabia. However, due to the concentration of wealthy people, a single industrial structure, and the constraints of the desert geographical environment, Israel's e-commerce market has shown infinite vitality. In 2020, the scale of Israel's e-commerce reached US$4.6 billion, ranking 34th in the world. Amazon, Shein, etc. are all popular mainstream e-commerce platforms in Israel. It is understandable that they would set their sights on this popular item and start from there. “ Temu is rapidly expanding into Southeast Asia The e-commerce market in Southeast Asia has great potential for development in the past two years. Indonesia's e-commerce GMV reached US$51.9 billion, ranking first, while the Philippines ranked third with only 11.5% market share. So ...Temu opened a new site in the Philippines, and Temu's expansion plan in Southeast Asia was quickly launched. Like the operating strategies of other sites, the Philippine site also adopted a low-price strategy , including setting up a lot of huge discounts and so on. Obviously, no matter Chinese or foreigners, they can't resist the low-priced products. But the local government has a rule: 1. The price of imported goods sold on Indonesian e-commerce platforms must not be less than US$100; 2. Imported goods must obtain distribution and supplementary licenses before entering the Indonesian market; 3. E-commerce platforms cannot sell products of other brands while acting as a third-party sales agent. Doesn’t this strangle the lifeline of Temu? Lightweight products and full hosting models have always been Temu’s main products, so Temu’s marketing methods may not work in Indonesia. After all, TikTok, which wanted to promote full hosting in Indonesia before, has been affected, so Temu may hit a wall in Indonesia. Now recalling when Temu first appeared in overseas markets... It stole the show, from the Super Bowl to the American public, with slogans like "Shop like a billionaire" echoing in every street corner in the United States. In a short time, the number of downloads actually surpassed Amazon? Americans who have always used Amazon to buy goods were surprised to see such a "paradise" in the world. They placed orders without thinking. Although "Kan Yidao" was absent from Pinduoduo's overseas expansion, Pinduoduo's operations still opened my eyes and made me understand that there are always people who are better than you. I understand that there are two kinds of money-spending in the world, one is ordinary money-spending, and the other is Pinduoduo. There is nothing I can't think of, only he can't do it. In the first year after the 10 billion yuan subsidy was introduced, a lot of people laughed at it, saying that it was stupid and rich, as if they were watching a clown show. In the second year, people were saying that Pinduoduo’s days were numbered and it should prepare for its death. In the third year, it actually made a big comeback by offering free shipping for 9.9 yuan? (I laughed at Pinduoduo for being a flash in the pan clown, and it laughed at me for being a country bumpkin). It is true that Pinduoduo’s strategy in China is really addictive. For a while, I was frantically cutting down gold coins… Apparently, domestic leeks cannot satisfy Pinduoduo's strong desire, so it began to consider foreign leeks, and Temu appeared. I don't know if there is any difference in the taste between domestic leeks and foreign leeks. But it is obvious that Temu is not satisfied with the taste of one company, and has expanded its territory to the world. Back to Southeast Asia, although the Southeast Asian market is quite compatible with Temu's main business model, to be honest, the facilities in the Southeast Asian market are relatively backward. Import taxes and customs are very complicated. Coupled with the complex terrain, the efficiency of the "last mile" service is definitely greatly reduced. Copying and pasting a set of tactics to different sites will not work, which shows that Temu's expansion is just a shell. Besides, Lazada and Shopee are not vegetarians. They have not been around for so many years. How could they be squeezed out so quickly? The fully managed model that Temu is proud of is no longer uncommon in Southeast Asia. If Temu wants to gain a position in the Southeast Asian market as quickly as possible, it can only use the lowest price to gain consumers' favor with high cost performance. It's just self-immolation... |
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