Hungarians lose their jobs because of Temu

By: Trademagazin Date: 2024. 03. 06. 11:53

The Hungarian e-commerce market is seriously threatened by the Chinese Temu, which is trying to overrun domestic online stores with dumping prices and aggressive advertising. According to digital marketing experts, urgent action is needed to resolve the situation, otherwise a significant number of domestic e-commerce players may be at risk.

According to the data of the Central Statistical Office (KSH), online retail traffic increased dynamically in 2019 and 2020, but in 2022 the growth was only 7%, and last year it was only 3%. In this period, Temu appeared, which offers products to Hungarian consumers at prices up to 50-70% cheaper, which, however, involves the acceptance of lower quality. Temu strives to be the first of the regional web retailers to present all products to customers as an Amazon-like platform.

Temu’s aggressive expansion in Hungary began last fall, and the company launched an intensive advertising campaign. They became attractive to price-sensitive Hungarian consumers as they enticed customers with extremely low prices and free shipping. According to László Szabó, Growww Digital’s managing partner, Temu assumes losses and operates with dumping pricing, and behind the aggressive prices there is serious economic superiority.