Core Insights - Temu has rapidly expanded its presence in international markets, particularly in the UK, Europe, and the US, leveraging low prices and a fully managed model to disrupt the e-commerce landscape [2][9] - The company's financial performance shows significant growth in revenue and improvements in profitability metrics, indicating a potential for sustainable operations despite ongoing losses [4][6] UK Market Performance - Temu's UK subsidiary, Whaleco UK, reported a revenue of $63.27 million for 2024, a 97% increase year-over-year [4][5] - The gross loss narrowed to $4.03 million from $6.33 million the previous year, and operating loss improved to $8.7 million from $7.92 million [5][6] - Investment income contributed significantly to pre-tax profit, highlighting the importance of capital management in offsetting operational losses [4][6] European Market Insights - In Europe, Temu achieved $1.7 billion in revenue for 2024, a 124% increase from the previous year, with a gross profit of $626.6 million and a gross margin improvement from 22.4% to 37% [6][8] - The company managed to generate a net profit of $110 million after accounting for administrative expenses and investment income, showcasing its ability to balance growth and profitability [6][8] US Market Challenges and Strategies - Temu faced a significant sales decline in the US market during mid-2024, with some weeks seeing drops of over 30% [11] - In response, the company implemented aggressive price cuts averaging 18% on popular items and eliminated import fees, successfully reigniting consumer interest [11][12] - The US market remains crucial for Temu, accounting for over 60% of its global GMV, making its performance there pivotal for the company's valuation [13][19] Market Expansion and Seller Implications - Temu is also expanding into Latin America, the Middle East, and Southeast Asia, where it aims to capture market share despite lower immediate profitability [17][20] - Sellers are encouraged to adapt to Temu's pricing strategies to benefit from increased exposure and sales volume, even if it means sacrificing short-term profit margins [15][20] - The platform's ongoing expansion and strategic use of capital to manage losses suggest a long-term growth trajectory, providing opportunities for sellers willing to engage with the platform [17][20] Conclusion - Temu's rapid growth and strategic pricing adjustments highlight its potential as a significant player in the global e-commerce market, presenting both opportunities and challenges for sellers [19][20]

Group 1 - Temu's market in the US is experiencing a significant turnaround in August, with a noticeable increase in traffic and sales for sellers [1][3] - Sellers reported that sales increased from 280 orders to 400 orders within a week, indicating renewed optimism among cross-border e-commerce sellers focused on Temu [1][3] - The traffic recovery is attributed to Temu's strategic adjustments, including the resumption of advertising on platforms like Meta and Google, and the release of traffic from Amazon's paused ads [3] Group 2 - Temu has adjusted its traffic distribution rules to favor products with stable sales records over merely low-priced items, indicating a shift towards prioritizing product quality and sales stability [3] - Full-service sellers are benefiting more from the traffic increase compared to semi-managed sellers, highlighting a disparity in traffic distribution based on product performance [3] - Despite the positive trends, Temu faces challenges with the upcoming tariff policy changes and difficulties in attracting local US sellers due to concerns over their Amazon sales qualifications [5] Group 3 - Cross-border e-commerce sellers need to adopt more refined operational management to capitalize on the traffic recovery, with tools like 易仓ERP providing features to enhance inventory and logistics management [5][7] - The ability to synchronize inventory data and manage orders efficiently is crucial for sellers to avoid penalties and reduce shipping costs [7] - Sellers who can quickly adapt to platform policy changes and optimize their operations are more likely to achieve sustained growth in Temu's US market [7]

Core Insights - Temu has surpassed Amazon to become the world's leading e-commerce platform in terms of monthly active users, while also securing the position of the second-largest e-commerce platform in Brazil [2][5] - The rapid growth of Temu presents both opportunities and challenges for cross-border e-commerce sellers, necessitating a dual-platform strategy that leverages both Temu's growth potential and Amazon's established user base [1][7] Group 1: Temu's Growth - Temu has achieved the highest monthly active users globally, surpassing Amazon, with a projected GMV of over $50 billion in 2024 and an expected $70-80 billion in 2025, driven by a low-price strategy that attracts a large user base [2] - In Brazil, Temu has captured a 9.9% market share, overtaking Shopee to become the second-largest e-commerce platform, with a significant increase in monthly clicks and a 132% year-on-year rise in imported goods access [5][10] Group 2: Competitive Landscape - Amazon is intensifying competition by launching a low-price marketplace, Haul, in an effort to reclaim market share, particularly in the lower-tier market segments [6] - Temu is exploring a third-party platform model similar to Taobao, allowing merchants to set their own prices and manage shipping, which could enhance its competitive edge [6] Group 3: Seller Strategies - Sellers are encouraged to adopt a dual-platform strategy, focusing on Temu for growth opportunities while maintaining a strong presence on Amazon to ensure profitability [7] - Temu's low-price strategy is particularly effective for clearing inventory and testing new products, while Amazon's established ecosystem supports high-value, brand-oriented products [8][9] Group 4: Operational Solutions - Easy ERP provides seamless support for managing operations across both Temu and Amazon, facilitating automated order processing and efficient inventory management [11][15] - The system allows for real-time synchronization of SKU information and order statuses, enhancing operational efficiency and reducing manual workload [11][16]

Core Viewpoint - PDD Holdings, the parent company of Temu, reported a significant decline in profits for the first quarter, with revenue growth hitting a three-year low, indicating challenges in its operational model due to tariffs and weak consumer sentiment in its domestic market [1][4]. Financial Performance - Total revenue for Pinduoduo in the first quarter increased by 10% year-on-year to RMB 95.7 billion (approximately $13.7 billion), falling short of analyst expectations by RMB 5.9 billion (approximately $824 million) [4]. - Net income dropped by 47% year-on-year to RMB 14.7 billion (approximately $2.1 billion), missing general expectations by RMB 11 billion (approximately $1.5 billion), highlighting the impact of financial charges on profitability [4]. Market Challenges - The sudden slowdown in Pinduoduo's performance suggests that its business model is struggling to cope with combined pressures from tariffs, the end of minimum exemption, and fierce price competition in China's retail ecosystem [5]. - The macroeconomic and regulatory environment is currently unfavorable for Temu, with increasing trade barriers being set by governments to protect domestic interests [5]. Regulatory Developments - The EU has proposed a unified tax of €2 (approximately $2.27) on small packages valued under €150 (approximately $170.02) entering the European market, which could further impact Temu's pricing strategy [6][8]. - The G7 countries are also discussing imposing tariffs on ultra-low-priced goods from China, which could affect Temu's operations [6][8]. Strategic Adjustments - Temu has begun local warehousing services in Europe since December, with plans for 80% of European orders to be shipped from local warehouses [14]. - The company is adjusting its operational model to address regulatory challenges and consumer quality demands by gradually phasing out ultra-low-priced products and reducing user subsidies [14]. Market Position and Growth - According to Emerce, Temu's market share in Europe is expected to grow significantly to 35%-40%, surpassing North America as its largest market, with active users in Europe exceeding 120 million [11]. - The projected GMV for Temu in Europe is expected to reach €58 billion by 2025, reflecting a 45% increase from 2024 [11].

Core Insights - Temu sellers in the U.S. are experiencing unprecedented turbulence since 2025, with consumer spending on the platform showing a significant decline from nearly 50% growth at the beginning of April to almost zero by the end of the month [1] - A large number of sellers have reported a drastic drop in product sales, attributed to platform policy adjustments, increased competition, and the impact of U.S.-China trade tensions, particularly the cancellation of the T86 tax exemption policy [1][6] Group 1: Sales and Pricing Issues - Many Temu sellers have reported a sudden increase in "high-price limit" notifications, with the number of affected products rising from 5 to 45, impacting best-selling items [2] - The introduction of new pricing rules in March 2024 has led to penalties for sellers whose prices exceed those of competitors, resulting in restrictions on new listings and withdrawal freezes [4] - Despite some products being released from "high-price limit" status, many sellers still face poor sales performance [5] Group 2: Impact of T86 Tax Exemption Cancellation - Following the cancellation of the T86 tax exemption, Temu has removed numerous fully managed products from the U.S. market, although some tariffs have been reduced [6] - Contrary to expectations, only a few semi-managed products have seen sales increases, while many sellers report significant declines, with some experiencing drops of up to 90% [6] Group 3: Advertising and Price Adjustments - Temu has reduced its advertising spending on platforms like Meta, X, and YouTube by an average of 31%, contributing to decreased sales in the U.S. [7] - The front-end prices of many semi-managed products have surged, leading to consumer dissatisfaction and further sales declines [8] - A recent survey indicated that Temu's sales dropped by approximately 10% week-over-week from April 27 to May 4 compared to the same period in 2024 [8] Group 4: Seller Dilemmas - The reduction in advertising is expected to shrink the traffic pool for fully managed products to about 30% of its original size, while semi-managed products may not see significant changes [11] - Sellers are caught in a dilemma: they must choose between lowering prices to maintain sales, which sacrifices profit, or maintaining prices and facing declining sales [11]

Core Viewpoint - Cross-border e-commerce platforms SHEIN and Temu will adjust their prices starting April 25, 2025, in response to increased tariffs on goods from China and the removal of tax exemptions on small packages [1][2]. Group 1: Price Adjustments - SHEIN announced that its "price adjustment" will take effect later next week due to rising costs from recent changes in global trade rules, although the specific extent of the price increase was not disclosed [2][3]. - Temu also indicated that it will raise prices starting next week due to increased operational costs, while prices will remain unchanged until then [2][3]. Group 2: Market Position and Impact - SHEIN has become the third-largest fashion retailer globally with a market share of 1.53% in 2024, surpassing brands like ZARA, H&M, and Uniqlo, with Nike and Adidas leading the market [3]. - In the U.S. fast fashion market, SHEIN holds a dominant position with a 40% market share, followed by H&M, ZARA, and Uniqlo at 25%, 17%, and 12% respectively [3]. - Temu, launched in 2022, has rapidly expanded to over 80 countries, leveraging its parent company Pinduoduo's experience in the low-cost e-commerce sector [4]. Group 3: Regulatory Environment - The announcement of increased tariffs by former President Trump, which includes significant tariffs on Chinese goods and the cancellation of tax exemptions for packages under $800, has created a challenging regulatory environment for cross-border e-commerce platforms [4].