Pingduoduo's Temu Shines in South Korea's E-commerce Market
According to the latest report by South Korea's mobile data platform IGA Works, Pingduoduo's cross-border e-commerce platform Temu has achieved a "great outbreak" in the South Korean market from January to November 2024. The report indicates that Temu is the application with the most new downloads among South Korean adult users.
Female Users Drive Growth
Data shows that the growth of female users for Temu in South Korea is particularly significant. In the past 11 months, there were 1.92 million new users aged 20-29 and 2.12 million new users aged 30-39 among women, far exceeding the number of male users in the same age groups. This trend reflects Temu’s successful capture of young women's demand for cost-effective products, which is one of the key reasons for its rapid market penetration.
Competitive Pricing Strategy
Temu's rise is closely related to its competitive low-price strategy. Against the backdrop of global economic downturn, consumer demand for affordable goods has become increasingly strong. Temu quickly attracts a large number of consumers by providing them with a wide variety of cost-effective products. In the South Korean market, Temu covers everything from home items to electronics and fashion accessories, and most products are priced more advantageously compared to other platforms.
Rapid Global Expansion
Temu's success is not only limited to South Korea but also continues globally. Latest figures show that Temu has covered over 80 countries and regions and performs excellently in many emerging markets. Taking Brazil as an example, Temu’s traffic volume broke through 100 million visits in November, surpassing OLX and Shein and ranking fifth in the market. Compared to the 6.82 million visits in June when it just entered the Brazilian market, Temu’s growth rate has been very fast, increasing tenfold.
Amazon Responds with Amazon Haul
The rapid rise of Temu has naturally raised alarms among global e-commerce giants. Amazon launched its own low-cost marketplace called Amazon Haul on mobile, specifically offering bargain-priced items such as rings at $0.99, underwear at $3.99, and phone cases at $2.99. This move is clearly a direct response to Temu. With more e-commerce platforms entering the下沉 market (lower-tier cities or developing areas), the competitive environment for Temu will become increasingly complex.
Challenges Ahead
Despite Temu's current strong performance, the competition pressure it faces in the future cannot be underestimated. To maintain price advantages, improve user experience, and optimize supply chains, Temu needs to continue focusing on product quality, logistics delivery, and after-sales service.
With continued innovation in these aspects, Temu could further solidify its position in the global e-commerce landscape.
