Chapter 7 - Opening Case - Temu Arrives In Canada Flashcards
What is Temu? Which company holds Temu?
Chinese E-Commerce giant owned by PDD Holding, which is another E-commerce giant that offers extremely competitive prices, accessibility online, and free shipping. .
When did Temu first enter the Canadian market? What does its product offerings look like? Is Temu just another competitor to amazon?
Fall of 2022, offering over 30 major categories and over 250 subcategories of a vide variety of products like music instruments, beauty, fashion, electronics at the lowest possible price. No, they are growing much faster, being the top brand in just one year.
What is the main reason for TEMU’s growth?
Price. A consumer can find the same products they would on Amazon but at half the price, with free delivery and the same quality.
How does Temu keep their prices so low?
Products are directly shipped from factories in China, unlike Amazon who has to first bring it to their fulfillment centres then out to the customers. Temu cuts the middle man allowing for an incredible amount of savings.
What is a social reason as to why Temu is growing so quick? What was the inflation amount in 2022 and 2023?
The packages can arrive quite fast within 1 - 2 weeks despite the large distance between Canada and China. The reason Temu is so successful is because Canada is facing an inflationary spike where prices have increased by 7% in 2022 and 3% in 2023.
What are some tactics TEMU has done that is questioned by the community to get people to shop?
When the customer first entered the website TEMU provided a coupon that had to engage with that had a value of 20,50, or 100 and you had one hour to claim it encouraging people to make the purchase.
What are the concerns with TEMU and China?
The collection of information from the Chinese government, since it a Chinese company people question what TEMU does with that data and information. Since TEMU’s sister app in China Pinduoduo had malware that could bypass security permissions, view info from other apps, and change the settings making it difficult to remove the app.
What is the most serious concern with TEMU and China?
The labour rights in China. A smartphone priced at $60 would lead to concerns about the ethics of souring the product. China has a minimum wage of $400 a month, most likely these people are being treated poorly.
What is the result of Temu?
Despite all these concerns they continue to grow rapidly and have stores in France, Germany, Italy, Netherland, Spain, and UK.
