"Breaking out" from North America! Temu will be launched in Oceania and Europe

In the second week after its launch, the number of downloads on both iOS and Google Play in the United States surged by 860%; two months after its launch, it has firmly taken the top spot in the US app download rankings ...

Temu has been developing rapidly in the United States. It gradually opened its Canadian site in February, and officially went online in two Oceania regions in March. The European site is also expected to be operational soon.

Temu will be launched in Oceania in mid-March

Recently, there was news that following the two major North American markets of the United States and Canada, Pinduoduo 's cross-border e-commerce platform Temu will be officially launched in the two Oceania markets of Australia and New Zealand on March 13 .

At present, Pinduoduo has confirmed the news . The person in charge of the company's cross-border e-commerce business said, " In order to help Chinese manufacturing sell globally, after Temu officially lands in Australia, domestic manufacturing products that have been launched in the North American market will also enter the Australian market at the same time. "

Not long ago, Temu's Canadian site began internal testing. Although the specific launch time has not yet been announced, sources said the site will begin operations in the first quarter of this year.

An internal staff member said that Temu has achieved data connectivity between the Canadian and American markets in the background, so sellers do not need to re-list products for the Canadian market . In other words, products already listed on the US site will be synchronized to the Canadian site .

It is understood that Temu ’s two new sites in Australia and New Zealand will also synchronize data from other markets.

Unlike other cross-border e-commerce platforms, sellers on Temu can sell products to the world from one store . 99% of products for the US market will be directly synchronized to other Temu sites for sale without the seller having to do any additional operations, and the corresponding store ratings will also be directly synchronized .

Through this operation, sellers can reduce costs while opening up more markets, and sales are expected to increase significantly .

In addition, a relevant person in charge of Temu revealed that during the preparation for the Australian market, Temu will continue to be fully open to domestic brand merchants, small and medium-sized enterprises, source factories , etc. Merchants who settle in will enjoy preferential policies of 0 commission and 0 deposit, as well as traffic support , resource subsidies , etc.

After launching in the United States last year, there was news that Temu would launch in the European and African markets. Unexpectedly, Australia and New Zealand in Oceania were the first to enter Temu's development blueprint.

Why choose these two markets? Of course, it is because they are profitable.

Take Australia, for example, where the internet penetration rate is as high as 96.2% . According to We Are Social , 74% of Australians shop online in 2022 , resulting in online sales of $39.57 billion in Australia last year , and is expected to grow to $44.45 billion in 2023 .

As in other markets, Australian consumers are becoming more price sensitive and believe that online shopping offers more competitive prices .

In other words, Temu, which uses low prices as its offensive strategy , may be able to replicate its popularity in the U.S. market after entering this market.

However, it should be noted that the competition among e-commerce giants in the Australian market is becoming increasingly fierce. Amazon's average monthly visits reached 41 million, surpassing eBay ( average monthly visits exceeded 39 million ) to become the most popular platform in Australia . There are also e-commerce giants such as Shopify. If Temu wants to squeeze into this market, it will inevitably have to "fight".

European sites will also be launched, Temu is ready to conquer them

In addition to the two new sites mentioned above, Temu insiders also told the media that parts of Europe will also be launched .

Half a year ago, people in the cross-border industry were generally not optimistic about Temu , but now its rapid rise has far exceeded expectations. In just half a year, Temu's visits exceeded 70 million, and its GMV growth rate was even faster than others.

According to statistics from data analysis company YipitData, the current total retail sales of Temu 's US site has exceeded US$500 million . During last year's Black Friday alone , Temu 's single-day sales exceeded US $7 million. This year has made a good start, with Temu 's retail sales approaching US$200 million in January alone .

" Low price + subsidy " and " sky-high advertising marketing " , Temu has used these two powerful weapons to rapidly increase user awareness and average order value, and opened up the US market . Now it is preparing to enter multiple markets simultaneously and surround the global e-commerce market with "low prices".

Since its launch, the industry has always believed that Temu is benchmarking SHEIN, and Temu never seems to shy away from this statement. From the early team formation and merchant recruitment to the subsequent market strategy and GMV target setting, Temu and SHEIN have been in constant dispute.

In January this year , Temu 's visitor traffic has surpassed SHEIN . Industry insiders said that Temu's rapid offensive may shorten the time it takes to catch up with SHEIN.

According to people familiar with the matter, in February this year , Temu set a grand goal for its North American market business: before the first anniversary of its launch in North America, Temu's total retail sales must exceed SHEIN's on at least one day . In other words, from now until September 1 this year , it will take only half a year to surpass SHEIN's ten years of accumulation, which is really ambitious.

Compared with SHEIN, Temu sells a wide range of products, not just fashion, but also household items, pet products, outdoor products, industrial products, etc. Therefore , perhaps Temu ’s ultimate goal is not SHEIN, but Amazon, eBay and other large e-commerce companies that sell a wide range of products .

Temu is currently "blossoming in all directions" , but its competitors are being hit hard by the cold market.

Amazon suspends construction of second headquarters, Wayfair and Wish are in poor condition

According to foreign media reports , in order to cut costs, Amazon has suspended the construction of its second headquarters in Virginia, with a total investment of more than US$2.5 billion .

In 2017, Amazon planned to build its second global headquarters. At that time, in order to compete for the opportunity to locate the headquarters of this e-commerce giant, various states in the United States competed fiercely . About 238 communities submitted bids. Some communities expressed their intention to provide significant tax breaks, and others even expressed their intention to change the city name to "Amazon."

But now, as part of its cost-cutting and efficiency-enhancing plan, Amazon's headquarters construction plan will be shelved.

The second phase of the project was originally scheduled to start construction this year. The spiral tower included in it is the core of Amazon's new office center and the largest office center outside of Seattle . In addition, the construction of two office buildings that were originally planned to move 8,000 employees into the building that can accommodate 14,000 employees starting in June will also be suspended .

Obviously, under the current situation of economic downturn and sluggish market, Amazon has to slam on the brakes of its crazy expansion .

Earlier financial reports disclosed Amazon’s losses last year, but in fact, it’s not just Amazon . E-commerce giants such as Wayfair and Wish have performed poorly in the past year.

In 2022, eBay 's annual GMV was US$73.9 billion, a decrease of 15% compared with fiscal year 2021 ; net revenue was US$9.795 billion, a year-on-year decrease of 6%. Its active buyers fell by 9% year- on-year in the fourth quarter alone .

Home furnishing e-commerce giant Wayfair 's full-year revenue fell 10.9% year-on-year to US $ 12.2 billion ; the number of active users fell 19.% year-on-year.

The 2022 revenue of Wish, once a top e-commerce company, was even more dismal, down 73% year-on-year from 2021 to only US$571 million, with a net loss of US $384 million . The number of monthly active users and active buyers both fell by more than 60%.

Compared with the "stagnation" of these old e-commerce giants , how far and how long can Temu, which is in a "roaring" state, go?

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