Temu makes another move in Africa, is the e-commerce landscape about to change?

Even though it encountered obstacles in Southeast Asia, Temu did not stop its global expansion.

Temu has launched more than 80 sites around the world. According to the latest news, after South Africa, Temu has made new moves in the African market - it has come to Nigeria with its own killer weapon.

Advertisement paves the way for Temu to start business in Nigeria

The first to notice that Temu had launched its service in Nigeria were local consumers. Over the past period of time, many consumers said that their internet space was full of Temu ads: X, Instagram, Facebook and even YouTube...

These ads sparked heated discussions on social media platforms:

“They launched Temu in Nigeria and I already have two packages on the way.”

“Has anyone placed an order on Temu and successfully received the goods in Nigeria?”

“Temu is so bold. They advertise in Nigeria knowing that they don’t ship to Nigeria.”

"I'm not ashamed to tell you that the ad won. I have downloaded Temu and even added some products to the shopping cart."

Just as consumers were talking about this, a Temu spokesperson confirmed the news in an interview with local media: "Temu started serving customers in Nigeria in November... We are proud to introduce our M2C (manufacturer direct to consumer) model to the market."

According to current information, Temu may start providing services to Nigerian consumers from November 3, offering free shipping within 24 hours, a 90-day return period, and promotional discounts of up to 33,000 naira (about 142 yuan). According to feedback from netizens on YouTube, some consumers have already received orders and have given high praise.

(Source: YouTube user comments)

This strategy is consistent with Temu's entry into the South African market earlier this year, where Temu quickly gained market share by relying on low-priced goods, discount coupons and free shipping.

In fact, it is not surprising that Temu chose Nigeria as the second stop for entering Africa.

According to Statista's forecast, Nigeria's e-commerce penetration rate is expected to reach 13.25% in 2025, second only to South Africa and Kenya, demonstrating booming market potential and vitality.

At the same time, Nigeria is a populous country in Africa, with a total population of over 220 million (as of January 2024) and an average age of only 17.3 years.

The younger generation is the main consumer of e-commerce. They are good at searching for cost-effective products online and are extremely sensitive to price changes. This is a significant feature of the Nigerian e-commerce market. This feature is determined by the local economy of Nigeria. In October this year, Nigeria's annual inflation rate climbed to 33.9%, close to the highest level since 1996. This feature coincides with Temu's advantages.

Disrupting the market? Old e-commerce companies face challenges

The industry believes that Temu’s further layout is of great significance to the African e-commerce market. Its arrival has brought both opportunities and challenges to the market.

Nigeria is not only a populous country in Africa, but also has a growing middle class in recent years, which means it has huge potential for e-commerce. The arrival of Temu is likely to accelerate the release of this potential and promote the growth of the e-commerce market.

But for local established e-commerce platforms such as Jumia , the arrival of Temu is undoubtedly a huge challenge.

Although it has long dominated the African market, Jumia is currently facing a dilemma of stagnant growth and declining revenue . According to the financial report, Jumia 's revenue in the third quarter of 2024 fell by 13% year-on-year. Most importantly, since 2023, the number of Jumia users has remained at around 2 million, with almost no growth. In order to protect itself, Jumia had to withdraw from the South African and Tunisian markets.

Temu has successfully attracted many South African users through its aggressive pricing strategy and global supply chain, and is fully capable of attracting cost-conscious Nigerian shoppers. Price rationality and product diversity are the focus of local consumers. In addition, Temu's customer-centric policies, such as the 90-day no-questions-asked return guarantee, have also set an example for local peers.

This has led to intensified competition and forced existing players such as Jumia to re-examine their strategies and make adjustments, such as lowering prices, in order to retain their original customer base and their own competitiveness.

There are so many difficulties, and Temu himself is also under great pressure

Although the prospects are bright, Temu is also facing considerable pressure in Africa. In South Africa, Temu has captured the local market share at a very fast speed, causing fierce reactions from local companies; in response, the South African government is considering re-enacting tax rules to create a "fair" competition environment for domestic operators.

In Nigeria, although Temu has not encountered these problems yet, the Nigerian market itself is a tough nut to crack for many foreign e-commerce platforms.

The first problem is logistics. Nigeria's logistics industry is well-known for its inefficiency and lack of consumer trust, but delivery time is a matter of great concern to local users. In the unboxing video of Temu parcels posted by netizens on YouTube, related problems frequently appear.

Due to the lack of direct transportation options, Nigerian consumers have to rely on parcel forwarding services, which not only increases costs but also increases the complexity of logistics. In order to gain a foothold in the market, Temu needs to build a seamless logistics network in Nigeria to ensure affordable and reliable delivery services.

In order to meet this challenge, Temu has established partnerships with local express delivery companies Flytexpress and Speedaf. A spokesperson for Temu pointed out that the company is still in the early stages of operation and its main task is to gain a deep understanding of local consumer habits in order to customize services more accurately based on these habits. It is worth mentioning that regarding the issue of whether the parcels can be delivered to the door, which is of great concern to Nigerian netizens, some netizens have reported that if the address and phone number are correct, the parcels delivered by Speedaf can be delivered to the door.

(Source: YouTube user comments)

Trust building is also a key issue. Nigerian consumers prefer platforms that have proven themselves to be reliable. For Temu, to win the trust of local consumers, it must demonstrate consistent delivery time (the ability to ensure that all orders or products can be delivered at the same time or very close to it under certain conditions) and a safe and reliable payment environment.

In response, Temu has taken a series of measures to strengthen security. Specifically, Temu has introduced a payment system that uses cutting-edge encryption technology to ensure the security of users' financial information during transactions; at the same time, its network security system has been certified by the German DEKRA agency.

In addition, as a member of the Anti-Phishing Working Group, Temu is actively involved in preventing and combating phishing activities to protect users from the threat of online fraud. Temu also provides real-time shipment tracking and 24/7 customer service support to ensure that users can keep track of their orders and get help in a timely manner.

According to 36Kr Future Consumption’s exclusive report, Temu’s GMV in Q3 this year was around 13-14 billion US dollars, with a month-on-month growth rate of about 15%, while the month-on-month growth rate in the previous quarter was about 50%. Although people related to Temu denied these data, if they can succeed in new markets, it will undoubtedly inject new impetus into Temu’s growth. Looking ahead, it remains to be seen whether Temu can replicate its success path in the complex market environment of Nigeria and even the entire Africa. Ennet will continue to pay attention.