Temu has become the scapegoat for the collapse of an overseas platform!

Temu's booming development overseas is obvious to all. Earlier, it was reported that Temu's sales in the third quarter of this year had exceeded 5 billion US dollars.

This development speed is absolutely eye-catching.

Last month, Jane.com, an e-commerce platform based in Utah, USA , announced its closure. In the words of its CEO, they "cannot compete on price with sites like Temu."

During Etsy ’s most recent earnings call, the company’s CEO also said that Temu has a significant impact on advertising costs, especially on Google and Mata channels.

Of course, industry insiders believe that these brands and platforms are understandably worried about Temu for a variety of reasons . After all, Temu has a large following by selling goods at ultra-low prices. But for these brands and platforms, they can't compete with Temu with $3 tops or $13 shoes. It's even more impossible to copy its strategy of producing a large number of products at a high speed.

In addition, Temu's speed of new products is far beyond the reach of many websites - hundreds of new products are added to the website every day. With its attention to popular trends on social platforms, Temu is always at the forefront of fashion.

Of course, there are also many brands and platforms that think Temu has no impact on them. For example, the CEO of Lulu Fashion Holdings said in a recent conference call that we do not think Temu will have a negative impact on our performance this quarter; the CEO of eBay also said that we have not seen Temu have a significant impact on our business.

Therefore, industry insiders believe that platforms and e-commerce companies that encounter problems cannot simply blame Temu. Ultimately, platforms and brands themselves must take responsibility for their own decisions. Juozas Kaziukėnas, founder and CEO of Marketplace Pulse, once said that for brands and platforms that intend to compete with Temu on price, there is little hope. Price is only one of the variables, and optimizing decisions based on these variables is the way to win.

Juozas Kaziukėnas also said that the market is not static, but fluctuates every year. It closes some opportunities and opens some new ones every year. It is a game of survival of the fittest.

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