Team Up, Price Down. The words are simple and they combine to make for one of the most popular and fastest-rising newcomers in the e-commerce space. Temu was founded in Boston in 2022, just a few years after the COVID-19 pandemic fundamentally altered human behavior. With more time than ever focused on the internet and in digital spaces, consumers have adjusted how they purchase the items that they need for their daily lives.
Temu was founded to offer more affordable products as they worked directly with suppliers to reduce prices and take better control of their inventory. Already featuring more than 10,000 employees and $61 billion in fulfilled annual orders, Temu has set the stage for a successful future.
Let’s engage with Temu’s new marketing analytics and their collaborative approach to reducing prices.
Inside the World of Temu
Quickly becoming one of the most downloaded applications in the shopping category on most app stores, Temu garnered seemingly instant attention after it was released to the world in 2022. With a massive network that sprawls across the globe, Temu has already made a name for itself as an international player in the world of next-gen manufacturing. Let’s take a closer look at how this manufacturing system works and how it is fundamentally altering how we shop.
Temu provides its consumers with lower prices due to its cost-saving approach to the world of manufacturing. Sourcing products globally, Temu utilizes a masterfully complex supply chain paired with advanced inventory management and analytics. All of these information networks are available for brands to utilize so that they can pass the savings directly to their shoppers.
Reducing Waste and Improving Outcomes
If you’ve paid much attention to the e-commerce world then you’ve already noticed how large retailers are streamlining inventory management, utilizing barcodes and RFID scanners to automate fulfilling orders. These companies require a finished product for their strategy to work.
Temu separates itself by working with manufacturing companies during the development process of a product, allowing for quick access to an efficient supply chain and infrastructure. Temu takes this process even further by providing advanced analytics to sellers to help them determine which consumer preferences and behaviors they are targeting.
Companies will often spend millions of dollars from their budget on surveys and other marketing analytics, so the fact that Temu provides this info for free is a big deal. Through the collaborative approach, Temu is able to help brands lower their prices while reducing production costs, all to the benefit of the consumer.
Temu is utilizing a system not dissimilar to Google’s approach to search results and user histories. Through the use of brand analytics and product research, Temu is helping brands to develop products at lower-than-ever prices while still retaining a high level of quality.