Temu exploded in another market, gaining over one million users in 8 months!

Temu has been on a roll since its launch , expanding rapidly in just over a year. It now covers more than 50 markets around the world, and the number of users has exceeded 250 million.

Recently, foreign media GKID-MASTERCARD reported that Temu was officially launched in Hungary in September 2023. By April this year, just eight months later, its user base had exceeded 1.28 million.

Moreover, in the first three months of 2024, Temu has sent 1.5 million orders to Hungarian consumers. According to statistics, the amount of these orders is close to 22.5 billion forints , accounting for 7% of the total online transactions on the platform . Obviously, Temu has ushered in a big explosion in another overseas market.

There is also data released by an authoritative organization stating that the number of online orders in Hungary in 2023 was more than 83 million, an increase of only 7% over the previous year, with total revenue of approximately 147.4 billion forints.

In this regard, GKID consultant Norbert Madar pointed out that the Chinese e-commerce platform has the most significant impact on the number of orders in the Hungarian market. Although the growth rate of online orders of retailers in the country was not high last year, the total number of orders was actually very high. From the data released by GKID, it can be seen that the total number of e-commerce orders generated by Hungarian consumers in 2023 will exceed 102 million, with a growth rate far exceeding 32%.

Madar also said that the reported turnover of the domestic retail market is currently slightly declining and stagnant, while consumers are generating more and more orders and transactions on cross-border e-commerce platforms, especially Temu.

More importantly, due to the large number of promotions and introductory offers, Temu, which had an online customer base of 3.9 million last year, now has about 200,000 to 250,000 new active users. It can be said that Temu has strongly seized the Hungarian e-commerce market with its huge advertising marketing and rich product categories.

At the same time, this has also put tremendous pressure on the country's retail industry and made many domestic sellers worried.

As Temu and other foreign e-commerce platforms become increasingly powerful, consumers ' purchasing power and demand for domestic retailers in Hungary continue to decline . Data shows that compared with the base in the same period of 2022, Hungary's online retail traffic in 2023 only increased by 8.5% . In addition, in the first quarter of 2024, Hungary's online retail sales increased by only 6.1% year-on-year.

Based on this situation, relevant institutions conducted an investigation on some online retail stores in Hungary . The results showed that in addition to the decline in consumer purchasing power and demand, the biggest problems faced by the interviewed e - retailers include increased advertising costs, rising retail prices of goods, and competition from foreign e-commerce companies.

Szabolcs Timár, senior analyst at GKID, said that it is not just the online FMCG sector that is threatened, as most of the country's market segments have seen a loss of traffic and customers due to the entry of Chinese retailers.

However, as Hungary develops, in addition to Temu, more e-commerce platforms will enter the market in the future, and the pressure faced by local retailers may continue to increase.

Temu

Hungary