Why is Temu so cheap?
Business Daily
BBC
4.4 • 816 Ratings
🗓️ 19 March 2024
⏱️ 18 minutes
🧾️ Download transcript
Summary
The Chinese-owned online store has exploded in popularity in the past year, shipping to customers in 49 countries around the world. And its advertising has taken centre stage at one of the world’s most watched events: the Super Bowl.
So why is Temu so cheap? And how can it afford to spend hundreds of millions of dollars on advertising to take on its rivals?
We hear from experts, politicians and shoppers in China, the US, and the UK about how the company operates, as it seeks to out-pace the competition.
(Picture: The Temu logo displayed on the screen of a mobile device. Credit: Getty Images)
Presented and produced by Sam Gruet
Transcript
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| 0:00.0 | Hi, Namulanta Combo here with some very exciting news. Dear Daughter is back for a new series. I'm putting together a handbook to life for Daughters everywhere, full of stories and advice to help navigate life. That's Dear Daughter from the BBC World Service. Find it wherever you get your BBC podcasts. |
| 0:22.3 | Hello and welcome to Business Daily on the BBC World Service. |
| 0:26.3 | My name is Sam Gruy. |
| 0:27.9 | Today, we're going behind the meteoric rise of online shopping company Temu. |
| 0:36.2 | It's a bit like Amazon on steroids. |
| 0:39.0 | If you don't know what Timo is now, you will in the coming months because it is one of China's largest e-commerce players that's bringing products straight from the factory floors in China, straight to your homes throughout the world. |
| 0:52.9 | The online store has exploded in popularity around the world, |
| 0:56.5 | shipping to customers in Europe, the Middle East, Asia, and North and South America, |
| 1:01.3 | with its adverts taking center stage at one of the world's most watched events. |
| 1:05.8 | With the comeback for the ages, the 49ers are going back to the Super Bowl and ripping the heart out of the lions. |
| 1:15.9 | San Francisco overcomes a 17... In this episode, I'll be following the journey from purchase to manufacture, |
| 1:24.9 | shipping, to arrival. To ask, why is Temu so cheap and how can it afford to spend hundreds of millions of dollars on advertising to take on its rivals? |
| 1:36.9 | Chinese love that Penduodwa is expanding into the international markets with Simo. |
| 1:42.8 | They're proud that Chinese companies are able to slay the e-commerce dragons from the United |
| 1:48.5 | States like Amazon. |
| 1:50.6 | The rise and rise of TEMU coming up on today's business daily. |
| 1:59.5 | But it all starts here. |
| 2:01.6 | With you, the customer. |
| 2:04.6 | I've used Timo and I've bought party decorations, so the blooms, that kind of thing. |
| 2:10.6 | It's a rainy Tuesday afternoon in London's busiest shopping area, Oxford Street. |
| 2:15.6 | Where did you find out about Temu? |
| 2:18.0 | Found Oak Fruit Temu from a friend recommended it. |
... |
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