More popular among low-income people! Temu may not become an "Amazon killer"

According to a previous report by The Washington Post, some experts in the retail industry believe that Temu has become a competitor that Amazon cannot help but pay attention to due to its viral popularity. One of Temu’s most famous slogans in the United States is “Shop like a billionaire”, which not only appears in the Super Bowl, but also in advertisements of Facebook, Google and other companies.

CNN reported that "Temu, a new online shopping platform owned by one of China's top retailers, has quickly become the most downloaded app in the United States, surpassing Amazon and Walmart."

It has to be admitted that Temu is becoming a strong competitor in the e-commerce market with its huge inventory and products as low as 14 cents. Although some people think Temu may be an "Amazon killer", the facts are obviously yet to be verified.  

According to recent data released by consumer data research firm Earnest Analytics , Temu's rise has actually had a greater impact on the market share of discount platforms such as Dollar General Corp. and Dollar Tree Inc. than Amazon .

Earnest Analytics said that after a deep dive into existing brand customers and their spending habits among competing brands , Temu's share of the discount market surged from 0% to 14% in the year ending in September. The trend suggests that Temu has the potential to break the influence that discount giants such as Dollar General Corp. have had on budget-conscious and discount-conscious consumers for years .

Temu is changing the game in the US discount market with its unmatched low prices . While dollar stores offer great value for money , Temu's prices are lower than theirs . Interestingly, Amazon has distanced itself from Temu, excluding it from its price match guarantee in June.

Unlike Temu, which plays in the low-price market, data from Numerator shows that nearly half of Amazon's customers are high-income people . These people are more inclined to buy premium services such as Amazon Prime to get faster delivery. In contrast, although Temu 's delivery is free , the delivery cycle is relatively long . In addition, compared with Amazon's more relaxed return policy, Temu's stricter return policy may discourage consumers who are willing to pay for a more flexible return policy.

As some users believe, Temu cannot compare with Amazon's logistics speed, nor can it compare with Amazon's diverse and balanced product selection. For many consumers, delivery speed is very important; but there is no doubt that Temu is eroding Amazon's market share.

Some users also believe that Temu provides the necessary products for users who are short of money. She does not need the delivery speed of "it will arrive at 5 o'clock the next morning", and Temu's delivery speed is very good; but she does not think that Temu can pose a threat to the "high-end" Amazon.

In any case, the consensus is that Temu still has a long way to go before it can truly become an "Amazon killer". Let us wait and see the final result.

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