Let’s talk Marketplace 69: How Temu works - and why it won’t go away again

Hardly any other platform has moved the market as much as Temu in
the past 12 months: shoppers are delighted with cheap bargains,
and around one in four online shoppers in Germany has already
ordered there - across all age groups. The low-cost competition
is not just a problem for retailers and brands, marketplaces also
need to find answers to Temu's presence. 


Reason enough to demystify Temu. And that's what Ed Sander, an
expert in online retail in China, does in episode 69. Sander not
only runs the Chinatalk learning platform, he also writes
in-depth analyses of important Chinese players such as Alibaba,
Shein, TMall and Temu and its parent company Pinduoduo for China
TechBuzz. 


In the podcast episode, he describes in detail why Temu is not
actually a marketplace and how Temu's business model works, for
example by strictly dictating prices to Chinese manufacturers or
using sophisticated marketing tricks to constantly attract new
customers. And Ed makes it clear that Temu is constantly adapting
its business model very quickly to the changing market in order
to secure the greatest possible growth.


Ed's main message: the Temu phenomenon is here to stay and
European companies need to find ways to differentiate themselves
from the competition by offering added value. Ed also has some
tangible tips on this. So, listen to the new episode!



Newsflash:




Otto increases marketplace fees: Trading on Otto's
marketplace will become more expensive for all partners from
August 1. The basic fee will rise from 39.90 euros per month
to 99.90 euros and - even more seriously - sales fees are
rising drastically for some categories such as technology and
DIY. 






KaDeWe Group discontinues e-commerce: The KaDeWe Group got
off to a late start in e-commerce and is now pulling the
emergency brake early. As part of the restructuring, Chief
Restructuring Officer Josef Schultheiß is leaving the online
business.




Zooplus marketplace is official: Zooplus CEO GEoffroy
Lefebvre has announced they will open a pet centric
marketplace by November.




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Chapters: 


00:00 Introduction and Overview


03:14 Demystifying Temu and the Chinese Retail Market


09:53 Newsflash


15:39 Lack of attention paid to the Chinese market by European
e-commerce experts


24:54 The Consignment Model of Temu and the Potential for Western
Brands


30:55 How Temu dictates the selling price


36:22 The Unsustainable Business Model of Temu


41:49 Regulating Temu: Legal Options and Impact


46:02 Competing with Temu: Strategies for Brands and Retailers


52:01 Staying Informed: Opportunities to Learn More