Temu is rapidly expanding its global business map, and recently its sites in the Philippines and Chile have been officially launched. The Philippines became the first site in Southeast Asia, while the Chile site marked Temu’s entry into the South American market farthest from China.
Since last September, Temu has entered 38 countries and regions, covering Asia, Europe, North America, South America and Oceania.
According to reports, Temu follows the strategy of “Japan, South Korea and Southeast Asia” in the Asia-Pacific region, while the Philippine market has a rapidly growing group of young users and a high penetration rate of mobile Internet digital infrastructure, which has broad prospects.
On the home page of the Philippine website, like other websites, Temu initially emphasized the benefits of postage, free refund, up to 10% discount and so on. In addition, as you can see on the page of spike activity, the sales of many products have exceeded 100,000+.
However, the competition in the Southeast Asian market is fierce. In addition to the existing two giants Shopee and Lazada, TikTok is also expanding the market. In the Philippines, Temu cooperates with logistics service provider J&T express and continues to adhere to the low-price strategy, so it has a certain price competitive advantage in the e-commerce platform in Southeast Asia. In Chile, Temu has three cooperative logistics companies.
In the past, when we mentioned the e-commerce market in Southeast Asia, we often thought of Shopee and Lazada, but TikTok’s intervention broke the existing pattern of e-commerce in Southeast Asia. Momentum, a market analysis company, said that the total transaction volume of TikTok Shop in Southeast Asia increased sevenfold from $600 million in 2021 to $4.4 billion in 2022. In Vietnam, TikTok Shop even surpassed Lazada, ranking second in the local e-commerce market for the first time with 20% market share in the second quarter of 2022.
As you can imagine, Temu’s expansion will never be limited to the Philippines, and will further expand to other sites in Southeast Asia in the future. In addition to competing for market share, this may also trigger a new “low price” revolution.
According to the analysis report of Momentum Works, the overall average customer unit price of the popular e-commerce platforms in Southeast Asia is not high. The average customer price of TikTok Shop in Southeast Asia is $3 to $6, that of Shopee is $6 to $8, and that of Lazada is $8 to $10.
Post time: Aug-30-2023