Where's Temu gone? Ruined?

If everyone played social earlier, they must have seen the Temu ad.

Shopping app from China where the cheap stuff is confusing. Tablet 99 baht. Hundred main sofa is out!

Many people wonder, "How does it sell so that it doesn't break?"

Behind this strength is a business model that appears to stand on sand rather than mortar floors.

Today I'm going to tell you how Temu used four strategies to grow so fast and why it could only break because of one wave.

1. Casino-like app

Temu doesn't just sell cheap things, it makes "shop and stick" like a game!

He put game mechanics in the app, such as

- Spin the wheel, get the discount every day.

- Pro countdown rush to buy.

- "A few pieces left" sign to feel scared, miss the good stuff.

As a result, people spend an average of 24 minutes a day on Temu, almost twice as much as Amazon.

In other words, it's addictive like sugar. The more you shop, the more your brain secretes dopamine.

2. "Burn money to grow up" strategy

Behind the cheapness is that Temu actually loses every order.

The average loss was about $30 per order, and the average order was $25.

The parent company PDD Holdings uses the formula "grow first, profit later."

Just a year, Temu burned over $2 billion in Facebook advertising statements with IG!

Until the advertising cost of other owners also goes up

3. A loophole in the law that makes it cheap to sell

Temu took advantage of America's De Minimis rule.

If the package is under $800, it is "not taxable."

So Temu delivered the goods from China in small pieces, separating the parcels for each customer to become a "small importer."

It's a lot cheaper than a market like Amazon.

Called the rule, this is a "secret weapon" that causes it to burn money long without ruining.

4. Just change the law. Everything is broken.

If one day the US closes the De Minimis loophole (especially if "Trump" returns),

Temu will immediately experience a crisis, such as

- Price up 25%.

- Delivery slower than before.

- The one who escaped because it's no different from the others.

It is predicted that in the first week, sales could fall 17%.

Users are off 40% and the ranking on the App Store could fall to 58.

Lessons from Temu

Temu's story teaches you

Growing up fast with shortcuts. It's always priced.

Now Temu is still around, but the "golden age" as the Amazon Killer may be over sooner than thought.

Finally, the question is...

Growing up fast but unstable, is it worth it if one day everything breaks in the blink of an eye?

# Shopping online # shopee # China # Self-improvement # Trending