“This can be an interesting example of the production base in China finding sufficiently refined that it now not feels like it should go through distributors. They’re marketing straight to buyers. And There are plenty of people who are hurting economically and trying to find a discount,” he states.
Although the strategy makes sense as you know that Temu is a “sister corporation” of the Chinese e-commerce large Pinduoduo, which has supplied comparable specials in China for the last few several years. Pinduoduo has found good results in China selling heavily discounted merchandise straight from manufacturers to minimal-revenue purchasers, as well as agricultural items to farmers.
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Temu’s company model—if it catches on—could also have important implications for U.S. merchants and the worldwide supply chain in the coming 12 months.
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