Hey, have you heard about Temu’s latest move in the e-commerce world? It’s pretty bold. After Trump got back in office, everyone’s been on edge about tighter e-commerce rules. Well, Temu isn’t just waiting around. They’ve got a plan.
The Shift to Semi-Warehousing
Earlier this year, when Biden’s restrictions were looming, Chinese e-commerce giants thought semi-warehousing might be the way to go for crossborder ecommerce China. Instead of sending everything in one go, merchants ship goods in batches to the US, handle customs, and stash them in warehouses. Then, it’s all about pricing and sales.
And Temu? They’re diving in head-first. Over the past ten months, they’ve sent top managers and built a team almost a thousand strong to ramp up their supply game. Their goal? Hit $20 billion in sales by 2024, which would be a third of their total target.
A Reality Check
As of this October, things haven’t exactly panned out in Europe and the US like Temu hoped. They’re falling short on recruiting merchants and the volume of goods. Temu’s brushing off the rumors, saying those numbers aren’t right. This hiccup has not stopped their efforts to become a top ecommerce agency China.
But here’s the kicker – late October brought some big changes. Most of their semi-warehousing staff shifted to category operations, and some even went back to full warehousing. Plus, Temu’s now setting up mini warehouses overseas to stock up on popular items ahead of time.
Temu’s Evolving Strategy
Temu started with the full hosting model – merchants send goods to domestic warehouses, and Temu handles everything from pricing to delivery. Simple, right? But now they’re adding a semi-hosting layer. They’re even thinking about a third-party platform model, kind of like Taobao, where merchants can run their own pricing and sales, with Temu taking a cut from transactions.
If they pull it off, Temu will juggle full hosting, semi-hosting, and a third-party platform. Talk about having your cake and eating it too! Shein and Alibaba’s AliExpress are already playing this game, but Temu’s catching up fast. Their approach is a textbook example for any digital agency China looking to innovate in crossborder ecommerce China.
Looking Ahead
Launched just last year, Temu’s made a splash, outpacing older rivals by achieving in a year what took others over a decade. That’s not just good luck; it’s China’s supply chain prowess and some serious organizational skills from their parent company, Pinduoduo.
But as they say, what goes up must navigate some tricky waters. Temu’s now looking at more nuanced market strategies, balancing stakeholder interests and adapting to local market needs. It’s a whole new ballgame, and staying the course means adapting and evolving.
