The United States is one of the major e-commerce markets in the world, with broad prospects for development. The new changes in the market in the past two years have given Temu, a cross-border e-commerce platform that focuses on cost performance, an opportunity to break through.
Since last year, under the influence of the US interest rate policy, inflation pressure has continued and personal consumption has been sluggish. In 2023, the situation has not improved. According to the data released by the Conference Board, the consumer confidence index of the United States in January was 107.1, lower than 109.0 in December last year. Sarah House, an economist at Wells Fargo Bank, also predicted in the report that inflation would not disappear quietly and that the road to price stability in the United States would be long.
In this context, Americans began to spend cautiously and became more interested in low-priced and discounted goods. The growth of customer flow of relevant retailers was very significant. According to the report released recently by Placer.ai, as consumers continue to find ways to adjust their shopping habits to adapt to the continuous inflation rate, the industry where discount and “one-yuan store” are located seems to be in a favorable position, and it is expected to maintain their passenger flow growth in 2023.
When consumers look for more affordable shopping channels, Temu will become a better choice.
Similar to Pinduoduo, Temu also focuses on cost-effectiveness strategy. The price of its commodities is concentrated between 0.09 and 20 dollars, and some commodities are even as low as 1 cent. At the top of the official website of the platform, there is also a special 24-hour seckill activity zone, which focuses on a large number of goods with a price of less than $1.
30% off Limited to New Users. New User means a real person who registered an account on Temu platform and never placed any order on Temu.
Temu mainly attracts consumers by large promotion activities and low prices. Temu launched the “1 beauty sorting 1” super value promotion activity. Each account can spend 0.01 US dollars to select a product in the activity page. A penny of product can also be packaged. In addition to the 0.01 zone, many products in Temu are priced below $0.9. With the discount of new user coupons, many products can almost be sent home for free. Temu also specially divided two sets, namely, “below $10” and “from $0.99”.