In August, Temu was the most downloaded free application in France on iOS. The Chinese site offers low prices, reliable service and an ultra-aggressive strategy that is closely observed.
The government has launched a series of checks to check that everything is in order, and to act if necessary.
Compete with Amazon, SHEIN, AliExpress and Wish
You may not have heard of it yet, but for several weeks, the Temu online commerce application has enjoyed unprecedented success in France. Constant offers, extremely low prices and discount vouchers are legion on the platform, which offers shoes for less than 2 euros, silicone molds at -75%, and everything that one could find from the competition represented by Wish , AliExpress and SHEIN (which also experienced some troubles at the start of the year).
Asked by Le Figaro, analyst Jacques Penhirin explains that Temu is turning to structures that are too small for the competition, from which the site orders large quantities. Temu, which belongs to Alibaba’s competing group, Pinduoduo, is not yet profitable, but investments are underway and reserves are significant. In other words, Temu is entering the market very aggressively and is strong enough to handle this launch period.
All this worries certain associations, who believe that this model goes against all measures of ecological sobriety. On the French government side, controls have been put in place by the cabinet of Olivia Grégoire, Minister Delegate in charge of SMEs, commerce, crafts and tourism. The ministry is part of a broader investigation into the methods of sites of this type, the results of which are expected in the fall. As a reminder, in 2022, Wish was delisted in France. The group also had to pay a fine.
Emergency marketing
Temu certainly offers discounted prices, vouchers and promo codes, but almost all of them are limited in time and associated with stocks announced as limited. Alongside seasonal promotions, there are limited-time offers and flash sales, which have only one goal: to encourage purchases, and in quantity if possible. With the slightest order, buyers receive dozens of SMS informing them that discount coupons are available, that certain items identified by the algorithm are on sale.
Everything is timed to encourage the public to take advantage of these promotions before it is too late. The idea is that after getting several items for a few euros, customers continue browsing by adding other products to their cart. The site plays on urgency, a well-known marketing strategy called FOMO, or “fear of missing out”, which translates to the fear of missing out on something. It remains to be seen whether the use of data and commercial aggressiveness do not mask deceptive practices or products that do not meet current security standards.
Source : West France
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