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Economist Podcasts

Money Talks: Why Amazon should be afraid of Temu

Economist Podcasts

The Economist

News & Politics, News

4.35K Ratings

🗓️ 21 March 2024

⏱️ 46 minutes

🧾️ Download transcript

Summary

Amazon started with a plan to disrupt bookselling. It sold cheap books online, delivering them straight to customers’ homes. Three decades later it employs a million people in America and owns one hundred warehouses, each stocked with millions of products. More than a third of the US e-commerce market flows through it. Now, another company has spied an opportunity to disrupt Amazon: Temu. The Chinese e-commerce giant wants to undercut its US rival, delivering impossibly cheap stuff to Americans straight from factories in China. How worried should Amazon be?

Hosts: Alice Fulwood, Mike Bird, Tom Lee-Devlin. Guests: Wendy Woloson of Rutgers University-Camden; Mark Shmulik of Bernstein; Michael Morton, an e-commerce analyst at MoffettNathanson; and Josh Silverman, CEO of Etsy.

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Transcript

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0:00.0

Hello. This episode of Money Talks is available to listen to for free. But if you want to listen every week, you'll need to be an economist subscriber. For full details, search online for Economist Podcasts Plus.

0:16.5

In a world of seismic change, will your business shape the future or be shaped by it?

0:21.6

How will we capture the imagination of tomorrow's consumers?

0:26.6

Overcome operational constraints to focus on future growth

0:31.6

and unlock economic and social prosperity through environmental responsibility.

0:43.8

With EY's full spectrum of services across sectors, we're all in to shape the future with confidence.

0:48.3

Start your transformation journey at EY.com slash transformation. The Economist The Economist.

0:58.6

On Thursday, March 7th, I invited my co-presenter Tom to the studio for a secret challenge.

1:06.4

Hi Tom.

1:07.3

Hey, Alice.

1:08.0

So, do you have any idea why we're here?

1:11.7

I do not.

1:12.4

It's a complete mystery to me what I am doing in the studio.

1:16.3

So the topic is Timu, which is this up-and-coming retailing Beham-Oth,

1:22.6

which is competing very aggressively to win over customers in America.

1:29.0

We thought it might be fun to have a race between it and the other Beham-Off retailer in America,

1:36.2

which is Amazon.

1:37.3

So we're going to order some bits from each retailer.

1:41.0

You're going to take Amazon.

1:42.4

I'm going to take Timu.

1:43.9

And we're going to see who

1:46.1

wins. I've made a competition. I'm going to send you a link. Here we go. Goody King,

...

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