Temu’s colorful advertisements, which are punctuated by the catchy catchphrase” shopping like a billionaire ,” are probably familiar to anyone who spends little time online.
Temu specializes in offering a wide range of common things, such as clothes, games, and household products, for incredibly low prices. PDD Holdings, a Shanghai-based business, introduced the online platform late last yr( originally in the United States ) to serve customers from abroad.
Temu’s approach has increased dramatically since next. In September of last year, there were US$ 3 million sold, compared to$ 400 million in April. Temu was the most widely used free phone app in the US, the UK, Australia, and Germany at the time this article was published.
Why has Temu achieved like great victory? It’s safe to say that the program employs successful tactics to entice users to return. Beyond that, however, using it isn’t completely danger- or guilt-free, similar to other e-commerce platforms. If you’re thinking about giving it a chance, here are some things to think about.
Temu’s victory strategies
1. Price
Many Australians might associate” made in China” with low cost and subpar products. Temu’s customers, however, are starting to see it as providing reasonably priced goods that don’t always sacrifice quality. In some circumstances, 10 to 20 products will only cost you$ 20 to$ 30.
Temu asserts that by eliminating middlemen in the offer ring, it is able to provide these costs. Temu handles everything else, from traditions running to foreign delivery, while the companies provide the product information and the items themselves. This streamlining lowers product costs.
However, getting quite benefit comes at a cost. There are growing worries that Temu and its distributors might be losing money. But, big advertising investments, such as offers of competitive prices and advertising campaigns, which are all done to increase brand awareness and gain acceptance, frequently result in negative cash flow for startups in their early years.
This is particularly true in the fast-paced e-commerce industry, where success and failure occur quickly. Temu and its suppliers, the majority of whom are from the e-commerce system Pinduoduo, are probably mindful of this dynamic.
2. a successful marketing plan
Temu caters to customers’ personal needs in contrast to additional e-commerce systems that focus on practical benefits like saving money. It adds the notion of” shopping like a billionaire” to the buying experience, which also fits with its value-based plan.
Temu entered the market as consumers were struggling to find” value” due to the high cost of living. Temu planned a$ 2 billion budget for the year and invested about$ 200 million in advertising in the first month after its US launch.
Temu is now looking for social media influencers, suggesting that it might use its Foreign knowledge to investigate a social – commerce strategy given China’s dominance in live-stream influenceer marketing. Social trading uses the influencers’ feeling of” friendship” to make the online shopping experience more interesting and product recommendations more credible. Additionally, it performs particularly well with selling offers.
strategies for selling campaign
Temu uses what is probably the broadest range of these techniques, even though it uses common sales tactics found on different e-commerce platforms. Here are a few illustrations:
- Gamified encounters Concern and praise are the two fundamental components of experiential advertising. The significant reduction provided is a significant reward, but using Temu’s spinning wheel is only marginally difficult. Such” games” give customers the impression that they are lucky, which makes them feel good. The reward also encourages them to take their browsing more seriously, increasing the likelihood of spending.
- Limited-time offers and thunder offers. One frequently employed development strategy involves giving the impression of scarcity through ostensibly” special” offers that are time-sensitive and won’t be repeated. Customers may become concerned about missing out as a result of this.
- Offering straightforward cost reductions and extremely economical sales is a tried-and-true way to win over devoted customers. Temu also has the beauty of providing free delivery on purchases with a very low minimum purchase price.
- system for loyalty. In exchange for receiving more commercial material, including email-only promotions, customers can settle in to Temu’s advertising emails. E-commerce businesses frequently have access to your private data, including your name, address, age, and telephone number, as well as behavioral details like your search history and website activity. The business can target you with targeted promotions and information to encourage saving using this information to create your user account.
- marketing for search engines. When they search for a product on Google, many users will see Temu ads at the top of their search results( in the form of” sponsored” posts).
- an AI-powered marketing tactic. Pinduoduo, Temu’s girl business that is based in China, is well known for its AI-driven advice system. Temu most assuredly employs comparable AI algorithms to generate individualized recommendations based on user browsing and purchase history( a practice that Amazon also engages in ).
preventing handling
Temu’s price proposition is where customers stand to gain the most. Although it may also include lower-quality products, this is typical of all e-commerce programs.
Temu’s business model is also based on emphasizing top-selling materials, which helps filter out low-quality items. Additionally, its 90-day completely return plan serves as a buffer for unfulfilled purchases.
Temu’s value-oriented strategy, however, might not be a good one for customers on all sides. Users may become more susceptible to overconsumption if exposed to such a variety of marketing strategies, which results in economic waste and post-purchase regret.
Before using an e-commerce software like Temu, it’s worth taking into account your exact requirements. Additionally, you should become familiar with the selling campaign strategies being employed. According to research, knowing these strategies and the intentions of advertisers can actually help young children be skeptical and develop a mental defense against them.
Additionally, consumers should moderate their enthusiasm for rewards in light of Temu’s gamified marketing strategy. Moving forward, it might be a good idea for governments and schools to launch social advertising campaigns or educational programs that teach advertising techniques and offer suggestions for coping mechanisms.
Temu didn’t answer The Conversation’s question about post.
Shasha Wang, Senior Lecturer at Queensland University of Technology and Xiaoling Guo, is a selling PhD candidate at the Business School at The University Western Australia.
The Australian Government Research Training Program ( RTP ) Scholarship provides funding for Xiaoling Guo. Any business or organization that may profit from this article does not employ Shasha Wang, read with them, own their shares, or provide funding for them. She has also not disclosed any additional affiliations beyond their scientific appointment.
Under a Creative Commons license, this article is republished from The Conversation. read the article in its entirety.