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Temu Attracts Millions of Customers with Rock-Bottom Prices 

Ultra-low prices fuel viral growth for Chinese e-commerce challenger.

Retail, Marketing and Advertising Business Law & Economics Entrepreneurship Ethics Operations Management Pricing Product Distribution Supply & Demand Chapter 1 Taking Risks & Making Profits Chapter 2 Economics Chapter 3 Globalization Chapter 4 Ethics & Social Responsibility Chapter 6 Entrepreneurship Chapter 9 Production & Operations Management Chapter 13 Marketing Chapter 14 Product & Price Chapter 15 Distribution Chapter 16 Place & Promotion Bonus Chapter B Video Blog Understanding Business Higher Education

With more than 51 million monthly active users in the United States, the Chinese e-commerce outlet Temu has expanded significantly in recent years thanks to its huge selection of cheap goods. This video looks at the platform’s low-price strategy and how it’s winning customers the world over in spite of reports of poor quality products and possible ethical issues.

Questions:

  1. Why do you think Temu’s business model is appealing to customers?
  2. Which e-commerce strategy do you think is most effective at winning over consumers: Temu’s low prices or Amazon’s quick shipping?
Author: NickelsMcHughMcHugh