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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