Ecommerce.co.za

What's the deal with Temu?

by Karabo Ledwaba
The omnipresence of Temu has left consumers wondering if there is anywhere this retail giant can't reach. Why does it feel like everytime you Google a product only Temu pops up?

Temu, a Chinese-owned corporation, has invested billions of dollars in marketing to establish itself as a leading online retail store akin to Shein and Amazon. According to the Wallstreet Journal, Temu has consistently outbid rivals for coveted ad space in the digital arena.

In a report by Media Radar, it was revealed that Temu dramatically increased its advertising budget by 1000% to a staggering $480 million in 2023, with a significant portion allocated to paid social media promotions. Temu made a splash at the Super Bowl, debuting its Shop Like a Billionaire 30-second ad during the first quarter of 2023 and again in the 2024 season.

Gamification

One of Temu's standout strategies is its gamification of the shopping experience. Consumers are enticed to spin a virtual wheel, offering prizes such as 85% off their purchase. This interactive approach has garnered attention and engagement from shoppers, drawing them into the Temu ecosystem.

In a recent #BizTrends article by Jacques Du Bruyn, managing director of Flume, he highlighted the significance of gamification in retail: "Gamification builds data for organisations, providing insights into consumer engagement and product interaction. The data collected can be vast, offering valuable insights when properly interpreted." Through gamified experiences, Temu not only entices shoppers but also gathers valuable data for strategic decision-making.

Temu has also allocated substantial funds towards micro-marketing efforts, utilising influencers to promote products and encourage purchases via platforms such as TikTok and YouTube.

So what is the temperature from South African consumers?

Some consumers have complained about its dominating presence on Google and social media, but others have been drawn into the extremely cheap shopping experience.

It will be interesting to see how Temu and the introduction of Amazon will perform in the South African market.

Originally published on Bizcommunity
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