© Temu
And if Temu managed to beat Amazon at home ? This is the question that our colleagues from Forbes asked themselves in a fascinating analysis. It must be said that the Chinese e-commerce platform leaves no one indifferent, and is starting to seriously worry its rivals in Europe and the United States.
Assets to compete with Amazon
Let's start with the strong points of the PDD Holdings company website. The architecture of the service is cleverly designed to keep the buyer in its net. From the outset, the visitor is greeted by a wheel which allows him to collect discounts and vouchers which sometimes amount to several hundred dollars.
We are bombarded with tempting offers and cheap products. And this is again one of the strengths of Temu, like a virtual supermarket, you will want to buy certain items that you would not have thought of at first.
The Middle Kingdom platform is also a marketing giant that spends lavishly. It should therefore invest $3 billion for this purpose in 2024, and its advertisements broadcast during the last Super Bowl made an impression.
The investment is so massive that it is driving up prices in the online advertising market, much to the delight of the Meta group. It seems to work, and Temu is by far the most installed application across the Atlantic according to the latest surveys.
Is this enough to overtake Amazon ?
Quickly establishing itself on the American market is one thing, but sustainably overtaking Jeff Bezos' firm is another. Amazon still has 38% of Uncle Sam's e-commerce market share, and it seems firmly in the lead.
The Tech giant benefits from advantages that its rival does not have. This applies in particular to same-day or next-day delivery via Prime (4 to 9 days on Temu). The Chinese service is also affected by its low-cost image. It therefore seems quite unlikely in the short term that major clothing or high-tech brands will decide to sell their products directly there.
Things could of course change in the future, but for now Amazon still seems to be well established on its throne. It is not necessarily the same in China where Pinduoduo, the local equivalent of Temu, is starting to seriously worry its rival Alibaba. You can always reread our dedicated article here.
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