Temu is in trouble: Wish was sold for pennies
The Chinese company Qoo10 bought the e-commerce platform Wish, which was valued at 14 billion dollars a few years ago, for only 173 million dollars. The transaction points to the fierce competition in China’s e-commerce sector, where major companies are trying to win new customers with aggressive advertising strategies, but the glory is fleeting.
San Francisco-based Wish, which was founded in 2010, focused on cheap products from Chinese manufacturers. The company’s business policy was aimed at customers being willing to accept longer delivery times in exchange for discounted prices. The company has spent heavily on advertising and sponsorship deals on digital platforms, such as with the Los Angeles Lakers football team.
However, Wish posted heavy losses and announced last November that it was exploring “strategic alternatives” after the company’s CEO resigned. The current acquisition shows that it is difficult to maintain growth in the Chinese e-commerce market amid competition.
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