Temu's Rapid Growth and Strategic Market Expansion

Temu, a cross-border e-commerce platform under Pinduoduo, has seen its sales surge to approximately $200 billion in the first half of the year, surpassing its full-year 2023 target of $180 billion. This growth outpaces competitors like SHEIN and TikTok, which took nine and three years respectively to reach $200 billion in sales.

Temu's expansion strategy has shifted from "full托管" to "半托管" modes. In "半托管," sellers handle logistics, unlike "全托管" where Temu manages it. This change broadens product offerings and reduces costs.

The platform benefits significantly from the U.S. "最低限度条款" which exempts tariffs on imports under $800. However, with potential policy changes under a Trump presidency, Temu is diversifying its market focus, aiming to reduce its U.S. sales share from 60% to 30%.

Temu is also expanding its "半托管" model globally, starting with Europe, after initial success in the U.S. This model targets Amazon sellers with established logistics capabilities, offering them a platform to clear inventory.

Competition with Amazon is intensifying, with Amazon launching a "低价商店" similar to Temu's "全托管." This move not only competes directly with Temu but also strains international shipping resources, potentially increasing costs.

Temu's strategy to grow its "半托管" model is crucial for its continued expansion and resilience against market and policy shifts.