Chinese online shopping platform Temu, operated by PDD Holdings, is currently under scrutiny in South Korea for its aggressive marketing tactics that have garnered both attention and criticism. The platform, known for its budget-friendly offerings and attractive incentives, has sparked controversy over its strategies to lure customers away from competitors.
Chinese E-Commerce Platform Temu under fire for Aggressive marketing
1. Aggressive Marketing Tactics:
Temu’s marketing tactics have raised eyebrows as it offers discounts of up to 90%, free one-time returns within 90 days, and rewards in the form of credits and freebies. These incentives have contributed to its popularity among budget-conscious Korean consumers.
2. Referral Program:
Temu encourages existing subscribers to invite friends through its refer-a-friend program. To unlock benefits such as credits and freebies, users must invite a specified number of friends, creating a viral loop that expands Temu’s user base.
3. Explosive Growth in Subscribers:
Temu entered the Korean market in July last year to compete with AliExpress. Since then, the platform has experienced exponential growth, with the number of Korean subscribers soaring from 520,000 in August to 5.7 million in January, according to WiseApp, a mobile market research firm.
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4. Social Media Influence:
Temu’s popularity is further fueled by young Korean consumers in their 20s and 30s who share unboxing photos and videos on platforms like YouTube and other social networks. This trend not only boosts Temu’s visibility but also generates high profits for content creators.
5. Rivalry with AliExpress:
Temu faces competition from AliExpress, Alibaba’s counterpart, which entered the Korean market in 2018. Both platforms have strengthened their presence by offering unbeatable low prices, despite challenges such as longer delivery times and occasional concerns about product quality.
Conclusion:
While Temu’s aggressive marketing has undoubtedly contributed to its rapid growth in the South Korean market, it has also sparked concerns and criticism. The platform’s strategies, including generous incentives and a referral program, have drawn attention to the challenges posed by such tactics. As the competition between Temu and AliExpress intensifies, the impact on consumer behavior, market dynamics, and the e-commerce landscape in South Korea remains to be seen.
