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BBC HomepageSkip to contentAccessibility HelpYour accountLiveNotificationsHomeNewsSportWeatheriPlayerSoundsBitesizeMore menuMore menuSearch BBCHomeNewsSportWeatheriPlayerSoundsBitesizeCBBCCBeebiesFoodClose menuBBC NewsMenuHomeIsrael-Gaza warCost of LivingWar in UkraineClimateUKWorldBusinessPoliticsCultureMoreTechScienceHealthFamily & EducationIn PicturesNewsbeatBBC VerifyDisabilityBusinessMarket DataEconomyYour MoneyCompaniesTechnology of BusinessCEO SecretsArtificial IntelligenceHow Temu is shaking up the world of online shoppingPublished52 minutes agoShareclose panelShare pageCopy linkAbout sharingImage source, Getty ImagesImage caption, It’s estimated that 152 million Americans use Temu every monthBy Sam GruetBusiness and technology reporterA record 123 million Americans tuned into this year’s Super Bowl. But as well as getting the nation’s biggest sporting event, a blockbuster halftime performance and several camera cutaways of Taylor Swift in the crowd, they also got six 30-second commercials for Temu – a Chinese-owned e-commerce company.The shopping giant has been criticised by politicians in the UK and US – a US government investigation finding an “extremely high risk” that products sold on Temu could have been made with forced labour.Temu says it “strictly prohibits” the use of forced, penal, or child labour by all its merchants.The company, which sells everything from clothes to electronics and furniture, first launched in the US in 2022 and later in the UK and the rest of the world.Since then, it has consistently topped global app download charts, with just under 152 million Americans using it every month, according to data gathered by analyst SimilarWeb.It’s “Amazon on steroids,” says retail analyst Neil Saunders, and with the tagline “shop like a billionaire” it has exploded in popularity, shipping to 49 countries worldwide.Image source, TemuImage caption, Temu spent close to $1.7bn on ads in 2023, according to SimilarWebA typical 30-second Super Bowl commercial costs around $7m (£5.5m), during this year’s event Temu had six of them. “It’s a lot of money for a very, short commercial,” Mr Saunders says. “But it is seen by an enormous number of people and we know that after that commercial Temu’s downloads spiked,” he adds. SimilarWeb data suggests individual visitors to the platform worldwide were up by nearly a quarter on the day of the Super Bowl compared with the previous Sunday, with 8.2 million people browsing the website and app. In the same period, Amazon and Ebay’s visitors were down by 5% and 2% respectively. “They’ve also spent a lot of money on micro-marketing, persuading influencers to push products and to suggest buying things on the platform via social channels like TikTok and YouTube,” says Mr Saunders. These influencers typically have fewer than 10,000 followers according to Ines Durand, an e-commerce expert at SimilarWeb.”Micro-influencers have strong communities, so their endorsement means a strong trust towards these products,” she explains.Temu is owned by Chinese giant Pinduoduo – “a monster in Chinese e-commerce,” according to Shaun Rein, founder of the China Market Research Group. “Throughout China, everyone buys products on Pinduo, from speakers to t-shirts or socks,” he says. More technology of businessCan Stockholm keep its edge in the music industry?Could product passports revolutionise the way we shop?Why firms are racing to produce green ammoniaWhy some cyber-attacks hit harder than othersThe brewing secrets behind tastier no-alcohol beerThe company consistently trades places with rival Alibaba for the top spot of most valuable Chinese firm listed on a US stock exchange. Its current worth sits at just under $150bn (£117bn).With the Chinese consumer market under its spell, Pinduoduo expanded overseas with Temu, using the same model that had ensured its previous success. According to Mr Rein, who is based in Shanghai, the firm has become a great source of pride and patriotism.”They’re proud that Chinese companies can slay the e-commerce dragons from the United States like Amazon,” he adds. A quick scroll through the Temu app or website will bring up anything from steel-toecap trainers to a device designed to help the elderly and pregnant women put on socks. A menagerie of manufactured goods, almost entirely produced in factories in China, Mr Rein explains.”Temu use an amazing, system that relies on, heavy data collection at scale,” says Ines Durand.”They collect data on consumer trends, the most searched and clicked products, which they give to individual manufacturers.”Ms Durand says that while Amazon sells this data to manufacturers at a premium, Temu gives it to producers free of charge – information they use to “test the market” with a relatively small number of products. The platform often uses AI-generated images to keep up to date with the very latest trends, so the product on sale may not even exist yet, according to Ms Durand. Then they are shipped by air.”It means products don’t need to be stored. They don’t need to go to warehouses once it’s shipped by aeroplane, you go straight to the customer,” says Ines Durand. Image source, Getty ImagesImage caption, Temu ships straight from factories in China to the customerA third of parcels that came into the US last year under a shipping loophole known as the de minimis threshold were from Temu and competitor Shein, according to a report from US Congress.Many countries – including the UK and USA have a de minimis threshold, designed to help citizens to import goods.So as Temu’s goods are shipped directly from the factory floors, cutting out the middlemen, they become essentially duty-free.More regulation may be on the horizon to close up shipping loopholes, however, according to Mickey Diaz, chief operating officer at global freight company Unique Logistics. “The UK has already started to look at Temu with some scrutiny, including the sale of weapons that are otherwise not allowed into the UK, which were being imported because of these loopholes,” she explains.Temu has been criticised for its supply chains too, with UK and US politicians accusing the e-commerce giant of allowing goods produced with forced labour to be sold on its site. Last year, Alicia Kearns MP, head of the foreign affairs select committee, told the BBC she wanted greater scrutiny of the online marketplace to make sure “consumers are not inadvertently contributing to the Uyghur genocide”.Temu says it “strictly prohibits” the use of forced, penal, or child labour by all its merchants. It told the BBC anyone doing business with it must “comply with all regulatory standards and compliance requirements”.”Temu’s merchants, suppliers, and other third parties must pay their employees and contractors on time and comply with all applicable local wage and hours laws.”Our current standards and practices are no different from other major e-commerce platforms trusted by consumers, and allegations in this regard are completely ungrounded,” a spokesperson added. Despite the controversy, analysts expect further expansion for Temu.”We’ll probably see teams start to round out its offer more, perhaps pushing into some slightly higher priced products” predicts retail analyst Neil Saunders.According to Shaun Reid, the focus will be on grabbing an even bigger slice of the market.”For the next two to three years, their strategy is just to grow brand awareness and market share. They don’t care about profits. “That’s exactly what happened with Pinduoduo when it launched in China. They were giving incredibly cheap deals just to grab market share.”Related TopicsInternational BusinessAmazonChinaTechnology of BusinessTemuTop Stories’Only God can change this place’: Haitians see no end to spiralling violencePublished2 hours agoPutin hails Crimea annexation after claiming election winPublished2 hours agoRwanda bill amendments overturned in Commons votePublished2 hours agoFeaturesThe Papers: Kate ‘pictured in public’ and ‘key’ Rwanda voteGaza faces famine during Ramadan, the holy month of fastingPredicting Putin’s landslide was easy, but what comes next?No choice for Ukrainians: More Putin means more warThe US Navy’s relentless battle against Houthi attacksThe councils fighting to stop themselves going bustChris Mason analysis: Rwanda saga won’t be over even when law is passedWhat is a heat pump and how much do they cost?High-seas drama over an ocean treasure troveElsewhere on the BBCThe true story of the Army’s ‘golden egg’ agentThe Big Cases investigates the true story of a spy in suburbiaAttributioniPlayerA satirical look at the scheming world of PRCharles Prentiss and Martin McCabe embark on a new career as spin doctorsAttributionSoundsThe ultimate bromanceWatch the masters of satire Peter Cook and Dudley Moore with a look back through the archivesAttributioniPlayer’I will lie on my deathbed wishing I’d done more’Former spin doctor Alastair Campbell on what he’s learned from his life so farAttributionSoundsMost Read1Katie Price declared bankrupt for second time2Kate ‘pictured in public’ and ‘key’ Rwanda vote3Oldest surviving England player dies at 944Rwanda bill amendments overturned in Commons vote5Trump unable to get $464m bond in New York fraud case6’Only God can change this place’: Haitians see no end to spiralling violence7Putin hails Crimea annexation after claiming election win8Zac Goldsmith banned after speeding seven times9Customers withdraw millions after cash machine glitch10Energy grid needs £60bn upgrade to hit green target
[ad_1] With the Chinese consumer market under its spell, Pinduoduo expanded overseas with Temu, using the same model that had ensured its previous success. According to Mr Rein, who is…
![BBC HomepageSkip to contentAccessibility HelpYour accountLiveNotificationsHomeNewsSportWeatheriPlayerSoundsBitesizeMore menuMore menuSearch BBCHomeNewsSportWeatheriPlayerSoundsBitesizeCBBCCBeebiesFoodClose menuBBC NewsMenuHomeIsrael-Gaza warCost of LivingWar in UkraineClimateUKWorldBusinessPoliticsCultureMoreTechScienceHealthFamily & EducationIn PicturesNewsbeatBBC VerifyDisabilityTechnologyApple fined €1.8bn by EU for breaking streaming rulesPublished10 minutes agoShareclose panelShare pageCopy linkAbout sharingImage source, Getty ImagesBy Shiona McCallumTechnology reporterApple has been fined €1.8bn (£1.5bn) by the EU for breaking competition laws over music streaming.The firm had prevented streaming services from informing users of payment options outside the Apple app store, the European Commission said.Competition commissioner Margrethe Vestager said Apple abused its dominant position in the market for a decade.She ordered the US tech giant to remove all the restrictions. Apple has said it will appeal against the decision.The European Commission’s decision was triggered by a complaint by Swedish music streaming service Spotify, which was unhappy about the restriction and Apple’s 30% fee..Ms Vestager said Apple had restricted “developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem”. “This is illegal under EU antitrust rules,” she said.However, Apple said it would appeal, adding there was no evidence consumers had been harmed. “The decision was reached despite the Commission’s failure to uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast,” the company said in a statement.”The primary advocate for this decision, and the biggest beneficiary, is Spotify, a company based in Stockholm, Sweden.”Spotify has the largest music streaming app in the world, and has met with the EC [European Commission] more than 65 times during this investigation,” it said.Spotify attacks Apple’s ‘outrageous’ 27% commissionSpotify called the fine handed out to Apple “an important moment” and said it sent “a powerful message” that “no company, not even a monopoly like Apple, can wield power abusively to control how other companies interact with their customers”.Apple said the Swedish company pays no commission to them as it sells its subscriptions on its website and not on the app store. Spotify had argued that the restrictions benefit Apple’s rival music streaming service, Apple Music.Digital Markets Act In January, Apple announced plans to allow EU customers to download apps outside of their own app store, as the introduction of the Digital Markets Act (DMA) drew closer. The aim of the European Union’s DMA is to help competition in the technology sector and to try to break down the stronghold the likes of Apple and Google have on the market. The tech companies were given six months from August last year to comply with a full list of requirements under the new legislation, or face a fine of up to 10% of their annual turnover. The firms have until later this week to comply with a raft of changes announced since the start of the year, as Apple, Meta and TikTok pursue challenges to aspects of the law.Last week, Spotify and 33 other companies operating across a wide range of digital sectors wrote to the European Commission with a renewed attack on Apple’s “lack of compliance” with the DMA. “Apple’s new terms not only disregard both the spirit and letter of the law, but if left unchanged, make a mockery of the DMA and the considerable efforts by the European Commission and EU institutions to make digital markets competitive,” it said. Related TopicsSpotifyMargrethe VestagerEuropean CommissionAppleMore on this storyApple unplugs electric car project, reports sayPublished5 days agoDon’t dry your iPhone in a bag of rice, says ApplePublished21 FebruarySpotify attacks Apple’s ‘outrageous’ 27% commissionPublished18 JanuaryTop StoriesSarah Everard detective recalls shock at learning killer was PCPublished41 minutes ago£100m Church fund not enough to address slavery links, says reportPublished3 hours agoGermany under pressure to explain leaked phone call over Ukraine warPublished29 minutes agoFeaturesThe Ukrainian teenagers who returned for their school promDid the last Budget deliver growth and cheap beer?Bollywood stars and billionaires at lavish pre-wedding partyTrump supporters target black voters with AI fakesMystery of giant star sand dunes solvedCan a rubberstamp parliament help China’s economy?A pioneering women’s World Cup erased from history’I embrace my alopecia, but I’d love my old hair back’ Video’I embrace my alopecia, but I’d love my old hair back’Why Macron hopes abortion rights are a political winnerElsewhere on the BBCWhat went wrong that fateful night?A new two-part documentary series examines the 1994 Mull of Kintyre Chinook helicopter crashAttributioniPlayer’Bob’s music is an attempt to redeem us’How has Bob Marley’s Redemption Song inspired generations around the world?AttributionSoundsGary Neville returns to the Den…Can the aspiring entrepreneurs win him, and the fiery five over?AttributioniPlayerHow Trump’s golf dream turned into a nightmare…His controversial golf development in Aberdeenshire was greenlit with awful consequencesAttributionSoundsMost Read1Stop ‘rude’ vicar behaviour, wedding photographers say2Rare Ferrari recovered after being stolen in 19953Sarah Everard police recall learning killer was PC4Germany under pressure to explain leaked phone call5O’Connor’s estate asks Trump not to use her music6Record find leads to record deal for 1980s band7Church fund ‘not enough’ to right slavery wrongs8Paul Scully to stand down at general election9Dan Wootton show in breach of rules, Ofcom says10Trump supporters target black voters with AI fakes](https://newsinsightplus.com/wp-content/uploads/https://ichef.bbci.co.uk/news/1024/branded_news/14D69/production/_132835358_appleiphone15_gettyimages-1716249813.jpg)
