Temu has 14% of the U.S. discount retail market
Since its launch in September 2022, Temu has gone viral with consumers through a combination of savvy advertising (including two Super Bowl spots in early 2023 and 5 in 2024), strong influencer marketing with videos and livestreams, and using a referral reward system for new customers acquisition.
📝Today, Forbes quoted Running Point and I about the retail consumer phenom, Temu, in an article by Peter Cohan.
🛍️Temu with their “shop like a billionaire” slogan has mastered gamification and rewards to make online shopping fun, easy, and cheaper than other retailers.
📲Millennials and Gen Z blend their diverse identities within their social and fan communities and are much more likely to do so with a novel and fresh brand like Temu then with staid retail names unwilling to be hip. Temu has tapped into the discovery psychology of consumer behavior much like the old Filene’s Basement; people love to discover a find, especially one that seems fashion forward as opposed to unwanted close-out.
🏪Bigger picture, Temu and SHEIN create a marginal threat to dollar stores as well as Amazon, Shopify, eBay, Etsy, and Walmart. Their low-cost delivery system that benefits from tariff and trade law, is hard to beat.
Article excerpt is below:
“Temu has the advantage of novelty and excitement that is hard to re-create for staid low-end discount retail brands,” Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, told CNBC.
All online shopping companies capture as much data as they can; it is a matter of who, what, where, how, why, and when.
Michael Ashley Schulman 😉
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