TEMU, the online marketplace challenging rivals Shein and Amazon, is facing a backlash from suppliers in China over its aggressive effort to radically reshape its business model, reports London's Financial Times.
The Chinese group, owned by US$177 billion ecommerce giant PDD Holdings, had in recent weeks sought to recruit Amazon merchants who hold goods in warehouses in the US and EU, according to several suppliers approached by Temu.
The move appears to be designed to protect Temu's business if governments close a tax loophole that has supercharged its growth, while cutting down delivery times by storing goods closer to shoppers. The shift would allow it to sell bulkier and higher-margin products such as furniture and home appliances.
Launched in September 2022, temu rose to prominence by copying fast-fashion retailer Shein's model of selling cheap and lightweight goods flown from warehouses in China directly to shoppers in the west.
SeaNews Turkey
The Chinese group, owned by US$177 billion ecommerce giant PDD Holdings, had in recent weeks sought to recruit Amazon merchants who hold goods in warehouses in the US and EU, according to several suppliers approached by Temu.
The move appears to be designed to protect Temu's business if governments close a tax loophole that has supercharged its growth, while cutting down delivery times by storing goods closer to shoppers. The shift would allow it to sell bulkier and higher-margin products such as furniture and home appliances.
Launched in September 2022, temu rose to prominence by copying fast-fashion retailer Shein's model of selling cheap and lightweight goods flown from warehouses in China directly to shoppers in the west.
SeaNews Turkey
