How Temu is shaking up the world of online shopping

Mon, 18 Mar 2024 17:09:28 GMT
BBC News - Technology

Despite controversy China's Temu is becoming a global online shopping force

A record 123 million Americans tuned into this year's Super Bowl.But as well as getting the nation's biggest sporting event, a blockbuster halftime performance and several camera cutaways of Taylor Swift in the crowd, they also got six 30-second commercials for Temu - a Chinese-owned e-commerce company.

The shopping giant has been criticised by politicians in the UK and US - a US government investigation finding an "Extremely high risk" that products sold on Temu could have been made with forced labour.

Temu spent close to $1.7bn on ads in 2023, according to SimilarWeb.

Temu is owned by Chinese giant Pinduoduo - "a monster in Chinese e-commerce," according to Shaun Rein, founder of the China Market Research Group.

A quick scroll through the Temu app or website will bring up anything from steel-toecap trainers to a device designed to help the elderly and pregnant women put on socks.

Ms Durand says that while Amazon sells this data to manufacturers at a premium, Temu gives it to producers free of charge - information they use to "Test the market" with a relatively small number of products.

Temu ships straight from factories in China to the customer.

A third of parcels that came into the US last year under a shipping loophole known as the de minimis threshold were from Temu and competitor Shein, according to a report from US Congress.

"The UK has already started to look at Temu with some scrutiny, including the sale of weapons that are otherwise not allowed into the UK, which were being imported because of these loopholes," she explains.

Temu has been criticised for its supply chains too, with UK and US politicians accusing the e-commerce giant of allowing goods produced with forced labour to be sold on its site.

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