Temu, a Chinese online marketplace known for its cheap products, has faced challenges as it seeks to expand into south-east Asian markets. Indonesia and Vietnam have taken measures to protect local businesses from the flood of cheaper Chinese-made products that have been damaging their industries.
The rise of online shopping in south-east Asia has made it an attractive market for Temu, which has been expanding its presence in countries like the Philippines, Malaysia, Thailand, Brunei, and Vietnam. The region’s burgeoning middle-class consumers are driving online shopping sales, nearing $160 billion in 2024.
Chinese factories with spare capacity have been selling goods at high volumes and low costs to meet Temu’s demand, giving the marketplace a boost as it expands internationally. Temu’s aggressive marketing tactics, massive discounts, and gamified shopping experience have attracted hundreds of thousands of customers in south-east Asia.
While consumers benefit from cheap goods on Temu, local businesses are pushing their governments to take action to protect their industries. Indonesia has increased taxes and banned e-commerce on social media platforms to protect local manufacturers. Despite these efforts, Temu continues to seek ways to enter these markets, showing its determination to conquer new territories.
As Temu continues its quest for international growth, it faces challenges from regulators and local businesses seeking to protect their interests. The platform’s aggressive pricing and marketing strategies have made it a popular choice for consumers in south-east Asia, but its impact on local industries has raised concerns and sparked regulatory actions in some countries.
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