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Shoppers are flocking to Temu for cheap deals — but will the novelty last?

  

Category:  News & Politics

Via:  perrie-halpern  •  last year  •  19 comments

By:   Angela Yang

Shoppers are flocking to Temu for cheap deals — but will the novelty last?
A pair of running shoes for $11.98.

S E E D E D   C O N T E N T


A pair of running shoes for $11.98. Waterproof wireless earbuds for $4.39. A 40-color eyeshadow palette for $2.69.

These are some of the offerings onlow-cost shopping app Temu, which since launching in the United States in September has exploded in popularity. Waves of raving hauls and reviews have since flooded social media, convincing many once-skeptical consumers to test out a gimmicky online megastore filled with spin-the-wheel discounts and steep lightning deals.

Temu, owned by a Chinese company, ships its products directly from manufacturers in China for arrival typically within a week or two. Despite the lack of guaranteed two-day shipping offered by the likes of Amazon, many customers say the low prices make it worth the wait. For some, the constant cycle of gifts and discounts have also swayed them to increase their compulsive shopping.

Upon opening the app, shoppers can browse everything from clothing and beauty products to electronics and industrial tools — all at extraordinarily low or heavily slashed prices as brightly colored banners and ticking clocks urge users to hurry and add to their cart.

Serena Fuschi, who's been shopping on Temu since about a month after it launched last year, is in the top 5% of the app's affiliate program earners — having raked in $5,000 in commission from recruiting new shoppers.

"The whole focus is getting new users, which is what heightened its popularity in the first place," she said. "It's genius marketing: Here, we'll send you a free air fryer if you refer five people to the app. Then those people may purchase something or they'll tell their friends."

Fuschi has also shared dozens of hauls on TikTok from her Alabama home. Though she said she has never been sponsored by Temu, she also regularly updates a series on Amazon products that can be found for cheaper there, as well as a collection of tips for users to make the most of the app.

But Fuschi said she's considering slowing down on Temu content due to controversies surrounding the app, such as ethical concerns over the culture of mass consumption fostered by such companies.

"Especially in the influencer sphere, it's buy, buy, buy. Big boxes get more views. And a lot of people really are starting to not enjoy that," she said. "So you'll see a huge shift of those styles no longer being popular and, in fact, receiving a ton of criticism. And we've already started to see that."

Some of the criticism Fuschi said she's received on her videos include accusations that Temu has stolen product designs from small businesses and questions around what labor conditions are like in the factories that manufacture its products.

Temu did not respond to requests for comment.

"It's unfortunate that that is how we have to be but you have to be callous when you're on a budget and you can only afford so much," Fuschi said. "You don't have the luxury to be picky about where you purchase. If on Temu you can buy your kid's whole school wardrobe for $100, that's kind of where you got to shop."

To clinical psychologist and behavioral scientist Joshua Klapow, it seems Temu is targeting two types of consumer bases: those with lower budgets, due to its nearly unparalleled low prices, and those who are more likely to impulse buy, as a result of its gamified discounts and pushy limited-time deals.

"It has more of a Dollar Tree feel than Amazon or Walmart and that in and of itself is not bad, it's just different," Klapow said. "And so I find it interesting from a competition standpoint, because it's almost like they're not in the exact same market, or at least not yet."

When Toronto-based fashion creator Nkiruka Okocha kept receiving links from her friends promising a free gift if she were to join Temu, she wrote them off as a scam. But the links kept coming, so she decided to finally click — and to her surprise, the gifts actually showed up at her door.

That's when she decided to give Temu a real try. Ever since she placed her first order in April, she said she's now consistently turning to it for all of her small purchases. Now, after her initial Temu hauls went viral on TikTok, Okocha has accepted a sponsorship from the company. ​​

If Temu is going to stay with us, they're either going to have to constantly be recruiting new users or users who are more apt to impulse buy, or they're going to have to refine their user experience to people who are more analytical in their purchase decisions.

"Instead of going on Amazon, which is what I would usually do, I go on Temu and I get it for a cheaper price," Okocha said. "The shipping takes a little bit longer than Amazon but it's still more convenient and cheaper to shop on Temu."

What Temu excels at right now is pulling new users in, Klapow said. But its appeal is going to be difficult to sustain, especially among higher-budget shoppers. Upon reaching a comfortable disposable income threshold, he said, people tend to put more care into the quality and sourcing of their products rather than simply scouring for the cheapest deals.

"If Temu is going to stay with us, they're either going to have to constantly be recruiting new users or users who are more apt to impulse buy, or they're going to have to refine their user experience to people who are more analytical in their purchase decisions," he said.

But the biggest hurdle counteracting what Temu does best is the delayed gratification caused by its relatively slow shipping. The perceived value of a discount is diminished, Klapow said, when a shopper must wait weeks to see their impulse purchase in their hands.

"Ultimately for Temu, this is flashy and it's catching on, but they're going to have to be able to sustain consumers," Klapow said. "And they don't have enough of the components to sustain, meaning quicker delivery, ethical products and services — that's a question mark, meaning we don't know — and some part of the user experience that allows for a more intentional pace."


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Buzz of the Orient
Professor Expert
1  Buzz of the Orient    last year

I wouldn't be surprised if it gets banned on the basis of being a threat to America's National Security.  The paranoia about all things Chinese is bound to be triggered. 

 
 
 
Thomas
Masters Guide
2  Thomas    last year

MLM meets the internet. jrSmiley_123_smiley_image.gif

 
 
 
JohnRussell
Professor Principal
3  JohnRussell    last year

I have seen Temu, but havent bought anything from there yet. A lot of the stuff looks like junk, but mixed in are good deals on various things. Its kind of a "throw the kitchen sink at it" approach to shopping that will mostly appeal to people who love discount outlets and flea markets. 

I see nothing wrong with it, as said in the  article there are a lot of Americans who need places like this that have low prices. 

 
 
 
Greg Jones
Professor Participates
4  Greg Jones    last year

"Some of the criticism Fuschi said she's received on her videos include accusations that Temu has stolen product designs from small businesses and questions around what labor conditions are like in the factories that manufacture its products."

I try to avoid buying anything made in China, since it's likely to have been made with slave labor.

 
 
 
Jasper2529
Professor Quiet
4.1  Jasper2529  replied to  Greg Jones @4    last year
I try to avoid buying anything made in China, since it's likely to have been made with slave labor.

As do I.

Products made in China’s western province of Xinjiang are being sold to US consumers through the online shopping platform Temu, in breach of a US ban that forbids goods from the region due to links to forced labor, according to research by a global supply chain verification firm.

 
 
 
Buzz of the Orient
Professor Expert
4.2  Buzz of the Orient  replied to  Greg Jones @4    last year

Recently I've seen stories about "slave labour" and child labour in the USA, and having lived in China for 17 years in 3 different cities, met with thousands of people during that extended length of time I would say that there is no more "slave labour" in China that has a population more than 4 times that of the USA than there is in the USA, IF ANY.  Of course it's politically "correct" to demonize China - kind of sways the attention away from what America excels in, such as massive gun violence, world's record incarceration rate, war mentality, debilitating political division, record-breaking homelessness, etc etc etc.

 
 
 
Sean Treacy
Professor Principal
4.2.1  Sean Treacy  replied to  Buzz of the Orient @4.2    last year

Good thing you would never, ever gratuitously bash the USA to deflect from the slightest criticism of china’s abysmal human rights record, huh?

 
 
 
Buzz of the Orient
Professor Expert
4.2.2  Buzz of the Orient  replied to  Sean Treacy @4.2.1    last year

Stating actual truths about America is bashing it?  You deny the facts?  I'm not being a hypocrite when I post a reply to hypocrisy.  My comments are a reply to hypocritical comments made about China by those who know China only through hearing and reading intentional misinformation and disinformation.  

 
 
 
Sean Treacy
Professor Principal
4.2.3  Sean Treacy  replied to  Buzz of the Orient @4.2.2    last year

You are blatantly deflecting, which you do every time China is criticized. 

It's clear China's own conduct isn't defensible, so you pivot to attacking America. China just killed 20 million people, so I understand your need to change the topic. 

 
 
 
Buzz of the Orient
Professor Expert
4.2.4  Buzz of the Orient  replied to  Sean Treacy @4.2.3    last year

I didn't deny that forced labour could have been used in China, but merely pointed out "look who's talking", i.e. the hypocrisy of making the accusation.  If the products were found to be inferior I might not have made that an issue since I have experienced breakdowns in Chinese products myself.  However, I really can't tolerate hypocrites, and will point it out even if being accused of deflecting,. After all, America is not perfect either. 

Forced Labor in the United States

While forced labor is an international issue, it does occur in the United States. Despite our nation's foundation in freedom guaranteed in our Constitution, forced labor exists and persists even today. Victims of forced labor in the United States can be citizens, or they can originate from almost every region of the world, regardless of whether they have entered the United States with or without legal status. Despite the misconception that most forced labor victims are in the country illegally, a study by the National Institute of Justice found that 71% of those experiencing forced labor in the United States entered the country on lawful H-2A and H-2B visas. A  recent investigative report  of a large-scale South Georgia labor trafficking ring revealed findings consistent with those statistics. Of 26 farmworkers rescued on November 17, 2021, all were Latin American migrants who came to Georgia with legal visas.

LINK ->

  

 
 
 
CB
Professor Principal
4.2.5  CB  replied to  Buzz of the Orient @4.2.4    last year

Thank you for your explanation, Buzz.

I will take this opportunity to offer a few food for thought points:

1. Our country has a political party (Republicans) who if they had their way would rollback minimum wage controls in their states and the federal government. Taking us back to when laborers ("catch as catch can") worked for 2 dollars an hour or less (blacks were below the wage floor even then).

2. Even now to our shame, women don't get paid equal pay as men.

3. While I am  ambivalent about the CCP party, a question does present itself: 

How does one govern a nation with a billion plus people?  Our nation has never done so. We would like to think that a democracy can function (at our level today) with everybody generally being individualists but that is theory - not practice.

What would this nation- right now split down the middle and at its own 'throat' be like if we had 1 billion plus people (mouths) to feed?

 
 
 
Buzz of the Orient
Professor Expert
4.2.6  Buzz of the Orient  replied to  CB @4.2.5    last year

You know that your questions are rhetorical so I see no need to answer them.

 
 
 
evilone
Professor Guide
5  evilone    last year

Temu is to Amazon what Dollar General is to Walmart. I don't shop from either one and only Walmart when I have no other choice. Buy local! 

 
 
 
Jasper2529
Professor Quiet
6  Jasper2529    last year

From December 2022:

Temu currently has a C rating on the BBB, and an average customer rating of 1.4 stars out of 5, albeit from only 20 reviews. (Complaints are separate from reviews, which do not factor into BBB’s official rating.) McGovern at the BBB says it’s unusual for such a new company to receive so many complaints in such a short amount of time. She notes that Temu has acknowledged and responded to every complaint posted to the BBB website, but many of those complaints remain unresolved. Additionally, in 2021, the deaths of two Pinduoduo employees  spurred investigations and boycotts  over the company’s working conditions, according to the New York  Times.

 
 
 
CB
Professor Principal
7  CB    last year

My neighbor informed me of this site, and I would be interested. Slaver labor ("forced labor")? Hmmm, maybe I will stay away. I did look at the site when my labor remarked on it, but I am preoccupied by a new type of (similarly situated) sales model in my area!

 
 
 
Hallux
Professor Principal
8  Hallux    last year

The $1.98 dildo broke down and now I need surgery ... I don't trust the $0.69 diy tool.

 
 
 
Drinker of the Wry
Senior Expert
9  Drinker of the Wry    last year

Word to the wise, You get what you pay for.

 
 
 
devangelical
Professor Principal
10  devangelical    last year

oh yeah, sign me up to hand over my credit or debit card info to the ccp...

 
 
 
CB
Professor Principal
10.1  CB  replied to  devangelical @10    last year

It's probably safe considering that they are trying to build trust, routine, and a reliable base. What is worse is every other odd day I glance down at the status area of my computer to find that another U.S. company has given up "the goods" on its client base in a data breach. We are not safe in this sense, anyway!

 
 

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