Discover the rise and controversy surrounding Temu, one of China's leading e-commerce platforms.
Coming from the same verve as well-known online shopping sites like Shein and AliExpress, Temu has indeed carved a niche for itself as one of China's popular e-commerce sites. With a staggering 900 million users to its name, Temu generated a mind-blowing 61 billion orders within a year. This surge in popularity saw it clinching the 11th spot amongst online shopping sites in France.
The Controversy Surrounding Temu
Despite its popularity, Temu has not been without its fair share of criticism. A barrage of issues including unsatisfactory product quality and a conspicuous lack of conformity with import standards have raised eyebrows. Other recurring areas of concern include:
- Selling of customer data
- Exorbitant delivery times with the absence of European warehouses
- Unanticipated hidden costs
- Unfavorable working conditions for its employees
These escalating issues have attracted the attention of both Consumer Protection Authorities and the French Fraud Control (DGCCRF), prompting an investigation.
The Business Model
The business model of Temu is a subject of intrigue. It involves selling products at a loss, a practice that many would deem as unsustainable. Yet, Temu compensates for this loss through the sale of customer data.
The Temu model has not been without its toll on the environment. The excessive delivery times, coupled with questionable sourcing practices, have created a significant negative environmental footprint.