{"id":13612,"date":"2024-02-05T12:30:52","date_gmt":"2024-02-05T12:30:52","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=13612"},"modified":"2025-04-23T09:02:26","modified_gmt":"2025-04-23T09:02:26","slug":"shop-like-a-billionaire-behind-the-rapid-rise-of-temu","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/shop-like-a-billionaire-behind-the-rapid-rise-of-temu\/","title":{"rendered":"“Shop like a billionaire”: Inside the rapid rise of Temu"},"content":{"rendered":"

In the first of a new series, \u201cCan Chinese brands go global in 2024?<\/a>\u201d, we investigate Temu, which has leveraged China\u2019s technology and logistics advantages to bring cheap products to shoppers in the UK directly from manufacturers in China. But what is the cost of its rapid growth?<\/h3>\n

Since launching in late 2022, Temu has captured the attention of millions of shoppers worldwide with its promise to allow customers to \u201cshop like a billionaire\u201d at rock-bottom prices.<\/p>\n

The Temu app was the most downloaded free app in the US in 2023, and in December 2023, it became the second-most visited commerce site in the world, trailing only Amazon. Its sales topped US$ 5 billion in 2023, just one year after launch.<\/p>\n

However, Temu\u2019s exponential growth has raised concerns within the business community. In this article, we delve into the company\u2019s background, its remarkable growth, concerns surrounding its business model, and the implications of its expansion.<\/p>\n

\"launchpad<\/a><\/p>\n

What is Temu?<\/h4>\n

Temu (pronounced \u2018tee moo\u2019) is a discount e-commerce platform<\/a> with an app and website that launched in the UK in April 2023. The platform sells ultra-cheap products across a range of segments \u2013 from tech to kitchen gadgets to clothing \u2013 shipped directly from China. It has been compared to other discount e-commerce sites like Ali Express, Wish and Shein. Shoppers are encouraged to buy with \u201clightning deals\u201d, clearance sales and free shipping; at the time of writing, some of the lightning deals on offer included a 13-piece make-up brush set for \u00a31.07 and an insulated drinks tumbler with handle and straw (similar to the viral Stanley Cups that have been dominating Instagram and TikTok) for \u00a35.67.<\/p>\n

The platform keeps prices low by shipping directly from a network of small manufacturers and independent sellers, avoiding the need to spend on warehousing. The low value of most individual orders also means that it avoids UK customs duties, which only kick in on shipments valued above \u00a3135. From 15 March 2024, Temu will open its marketplace to sellers in the US, followed shortly by Europe. Like eBay or Etsy, products will ship directly from these sellers, theoretically reducing shipping times for consumers (and saving Temu money on logistics).<\/p>\n

Temu supported its launch with a massive marketing push, including spending huge sums on ads on social media platforms \u2013 reportedly spending $1.2 billion on Meta platforms (e.g., Facebook and Instagram) alone \u2013 and taking out two TV spots during Super Bowl LVII in February 2023 (reportedly costing more than $14 million).<\/p>\n