Will Temu displace domestic online stores?

By: Trademagazin Date: 2024. 02. 09. 12:34

Although the Chinese e-retailer Temu appeared on the domestic market only a few months ago, it has already become one of the dominant players in the domestic e-commerce market thanks to price competition combined with an extremely aggressive advertising policy. 83 percent of domestic online stores consider the new Chinese competitor to be a serious competitor, and 52 percent of them perceive a smaller or greater decline in their traffic due to its appearance – according to the answers of nearly 300 domestic online stores participating in the survey of the price comparison portal Olcsóbbat.hu.

In the past period, there is a good chance that every domestic user could regularly come across products advertised by Temu in advertisements appearing on social media platforms and through Google services. The market-gaining strategy, supported by an almost unlimited marketing budget compared to the domestic standard, turned the domestic e-commerce market upside down in a short time, and now an increasingly wide range of consumers are spending on the products offered by the Chinese online store with extremely low margins. According to GKID’s survey in January, only 0.5 percent of customers ordering from abroad used Temu’s service in September, but in the last month this proportion had already reached 29 percent.

The Olcsóbbat.hu survey also shows that the appearance of the new competitor was seriously felt by the domestic e-retailers, 52 percent of whom reported a decrease in sales due to the new competitor, and in the case of almost a quarter (24%), the decline exceeded 25 percent. .