What is Temu–the new shopping app sweeping the UK

It’s not every day that a new player shakes the foundations of the UK retail industry. Yet, that is precisely what the shopping app, Temu, has done. Started from the US market less than a year ago, it has swiftly penetrated the British market.

What is Temu and is it legit?

Temu, the American marketplace operating out of Boston, has ambitiously expanded its horizons beyond the US. After a spectacular advertising campaign during the Super Bowl, it rapidly spread its influence to 21 countries, from Europe to Australia. Speculation further abounds about a potential venture into the Asian market.

To be sure, not everything about Temu’s meteoric rise has been smooth. The company has faced criticism over late deliveries and missing items, especially during its initial expansion into new territories. Nevertheless, these hitches are not uncommon for a rapidly growing company and they appear to have gotten it under control, judging by the ebbing of complaints.

Temu’s efforts at resolving customer complaints also appear to be bearing fruit. Its customer review rating on Better Business Bureau, an influential US consumer watchdog, leads those of other leading e-commerce platforms and consumer apps by a significant margin.

A Space for Unbranded Shopping

Industry expert Richard Crone from Crone Consulting said of Temu, “It’s more than working; they’re inventing a new category of retail.” Jada Jones, an associate editor with ZDNet, purchased four electronics products from Temu to try. “I was more impressed with the products I tried from Temu than I thought I’d be,” she said.

One area where Temu has really hit the mark is in serving an underserved market for affordable, unbranded goods that do the job just fine. Who cares about a label when the product is sound? Many consumers do not as long as they can help them stretch their budgets. From table linens to coasters and small household items, these costs can add up.

And guess what? These are some of the best-selling items on Temu, which also stocks less well-known brands of everything from makeup and tennis rackets to violins and cellos. For those discerning shoppers who can forgo brand prestige, Temu has emerged as a mecca of delight and, of course, considerable savings.

Why are the products on Temu so cheap?

So how does Temu manage to offer such cheap prices? Some customers were skeptical, speculating about potential corner-cutting or dubious business practices. However, the secret to their pricing lies in a simple, yet efficient model: removing the middleman.

Temu’s system connects consumers directly with manufacturers, whether they produce football jerseys, kitchen appliances, or novelty socks. This direct supply chain model reduces costs and allows the savings to be passed onto the consumers. It also allows factories to gauge consumer preferences and demand with more precision, making production more targeted and tailored to the market.

While this is great news for consumers, it does pose some challenges to mom-and-pop shops, though it’s nothing new. E-commerce has been disrupting brick-and-mortar retail for 30 years since Amazon burst onto the scene and changed the face of bookselling and countless other industries.

In the current economic climate, with inflation and living costs soaring, it’s perhaps unsurprising that UK consumers and elsewhere are turning to apps like Temu in search of a bargain. As Temu continues to grow and shape the e-commerce landscape, the question remains: Is it the next big thing? With a customer-oriented approach, competitive pricing, and an aggressive global expansion strategy, Temu is undeniably a force to be reckoned with in the retail industry.