The cross-border version of "10 billion subsidies" is here! Is Temu going to tear off the low-price label?

Although we didn’t get a price cut, we did get “hundred billion subsidies”!

Recently, the hot topic of overseas expansion is Pinduoduo's launch of the cross-border e-commerce platform Temu. The focus of people's discussion is mainly on the following two aspects: whether the low-price model can work overseas and whether Pinduoduo will continue its domestic business strategy when going overseas?

From now on, Pinduoduo has not taken its classic signature " cutting price " to the international stage, but it is planning to launch a cross-border e-commerce version of the "10 billion subsidy". It not only wants to build a brand, but also support China's high-quality manufacturing companies to go abroad. This move is believed by industry insiders to mean that while Pinduoduo is harvesting low-income people, it is also trying hard to attract the attention of middle- and high-end people.

Will this dilute the controversies surrounding Pinduoduo, such as "low prices mean bad products", "cross-border involution king", and "cross-border philanthropist"?

"10 billion subsidies" are coming! Pinduoduo plans to build 100 overseas brands in the first phase

Recently, Pinduoduo announced the official launch of the "2022 Pinduoduo Overseas Support Plan" to provide an integrated service solution for manufacturing merchants to go overseas. Looking at the five specific support measures in Pinduoduo's overseas support plan, we will find that the cross-border version of the "10 billion subsidies" is quietly included. Let's take a look at the specific support content:

1. For overseas manufacturing enterprises, we will adopt a policy of 0 deposit and 0 commission for a long time;

2. Invest tens of billions of yuan in resource packages, unite 100 industrial belts, create 100 overseas brands in the first phase, and support 10,000 manufacturing companies to directly connect to the global market;

3. Provide infrastructure services such as domestic and foreign warehousing, cross-border logistics and after-sales services;

4. Launch an integrated overseas solution, including language and culture, product standards, intellectual property services, legal aid, trade arbitration, etc., to safeguard the legitimate rights and interests of Chinese manufacturing companies;

5. Carry out special training on "going overseas more and more" and launch customized courses for different types of products to help companies quickly expand into new overseas markets.

To summarize the support content, Pinduoduo has made sufficient preparations for merchants to go overseas, whether it is special training, helping to solve various problems such as language and culture faced in the process of going overseas, or providing various basic services such as warehousing and logistics. Pinduoduo wants to tailor a full-link one-stop supply chain overseas solution for Chinese cross-border merchants.

One of the most eye-catching points in the support plan is that Pinduoduo will invest tens of billions of yuan in resources, unite 100 industrial belts, build 100 overseas brands in the first phase, and support 10,000 manufacturing companies to directly connect to the global market. It is hard not to think that Pinduoduo's cross-border e-commerce project Temu wants to target relatively high-end people while focusing on low prices .

"Thanks to Pinduoduo's extensive and close connections with Chinese factories, Temu has a great advantage in purchasing products. The tens of billions of yuan in resource package subsidies can not only bring higher-quality Chinese products abroad, but also allow Temu to gain more market share." An industry insider believes that from Pinduoduo's series of actions, it can be seen that Pinduoduo has devoted a lot of energy and expectations to Temu, and more resources may be allocated in the future.

How will the 100 overseas brands be created? What are the support standards and conditions for the 10,000 manufacturing industries? Temu has not yet officially responded to these popular questions. However, insiders speculate that Pinduoduo's operation is similar to the "New Brand Plan" in the domestic market, and OEMs with high-quality products and reasonable prices may have a better chance of being among the ones supported by Temu.

The number of downloads in a single day exceeded Amazon and SHEIN, ranking first! Temu has grown rapidly amid controversy

" Going overseas, unstoppable !" Within less than a month of its launch, Temu has already achieved several great results in terms of downloads.

The report said Temu once topped the list of Android shopping apps in the United States in mid-September.

According to data from mobile data tracking company SensorTower, on September 17, Temu ranked first in downloads among shopping apps on the Google Play store, directly ahead of cross-border e-commerce giants Amazon and SHEIN .

As of September 22, Eastern Time , Temu ranked 30th in the Shopping category of the App Store, surpassing Wayfair , the largest online furniture mall in the United States. AliExpress , a long-established cross-border e-commerce platform, was ranked 27th, which means that Temu was only 3 places behind it.

The download volume alone can reflect to a certain extent that Temu is now in a stage of rapid development. However, in the cross-border e-commerce track, a temporary success does not mean that the road ahead will be smooth. The question of " How far can Temu go? " has been discussed many times.

As we all know, Temu was launched in the US market in September 2022, with 15 product categories covering fashion , beauty, pets, office supplies, etc. The company said that thousands of items are added every day . This business model is easily reminiscent of SHEIN. The platform is almost entirely low-priced, and it is also called a copy of Wish.

The Temu website shows that the prices of women's clothing are mostly below US$20, while the prices of accessories such as necklaces and rings are mostly between US$5 and US$10 . In addition, there are also some items on the platform that cost US$0.1.

Many cross-border sellers who are fed up with low-price competition naturally cannot stand Temu's approach. " Is this giving subsidies or warmth? What do you get in the end after selling so cheaply ?" A cross-border seller said that Pinduoduo wants to harvest traffic at low prices, cultivate user habits, and then slowly increase prices. However, ideals are full and reality is very skinny. This approach is likely to not work. Wish's no longer glorious history is a lesson for us.

To a certain extent, low prices are easily associated with poor quality. Many consumers who have used Temu are pessimistic about this platform. " Poor quality " is the hardest hit area they criticize. " I can only say that there is no good product . I bought a bunch of garbage , but because it is too cheap , I would rather throw it away or abandon it than return it . This platform is really not good . " One consumer said.

Even many suppliers disagree with Temu's low-price strategy. "The platform does not consider the style or quality when selecting products for investment, but only requires low prices," said several merchants who have already settled in. Pinduoduo only wants sellers to supply goods at low prices, but does not want to help sellers build brands and optimize products. This way of making quick money is not very feasible.

At present, " low price " has almost become the only evaluation of Temu by people. This is a major competitive advantage of Temu, and it may also be the biggest shortcoming restricting its development. Pinduoduo's launch of the "2022 Duoduo Overseas Support Plan" seems to indicate to the outside world that low price is just a "stepping stone" to open the market, and Temu also wants to bring more high - quality Chinese supplies to the world.