Is Temu The New SHEIN? A Case Study On The Rise of China's Over…

Camilla Gulì

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The sudden surge of Temu, seemingly out of nowhere, makes for a fascinating case study.
The rise of online marketplaces like Temu illustrates both the opportunities and challenges of e-commerce in today's globalized world.
However, the controversies surrounding Temu reveal the dark underbelly of hyperconsumption, unethical supply chains, and environmental disregard enabled by the internet age which set the stage for debates on how e-commerce can best serve the public while managing its potential pitfalls.
Such platforms provide unprecedented access to affordable products that may (but most likely won't) improve consumers' lives. But, at what cost?
Shoppers are drawn to Temu's extreme discounts and massive selection, with products often priced at a fraction of competitors. Inevitable questions linger around how such jaw-droppingly cheap prices are achieved if they come at the expense of workers and the planet, and what effect they have on our habits and priorities as consumers.

Temu’s Business Model and Controversies

China's step into the e-commerce landscape with the subsequent shift - from "Made in China" to "Marketed by China" - makes it inevitable not to compare Temu with the massive Chinese e-commerce company, SHEIN.
However, Temu operates more as an open marketplace than a vertically integrated retailer like SHEIN, connecting consumers directly to a diverse range of independent third-party sellers. This allows for more product variety and options at potentially lower prices.

So what’s the issue with Temu?

Here are some (with more to unfold):

1. Temu Has a Shady Sister..

Temu’s sister company PDD has faced controversies that raise questions about Temu’s operations. PDD’s app Pinduoduo was suspended from the Google Play store due to malware concerns. While Temu itself has not been suspended, the relationship raises some doubts.

2. "Supply Chain is Our Forte"

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