Temu is an e-commerce platform that, for some time now, has been attracting attention in the more than 60 countries it currently covers, including Colombia.
In the saturated world of e-commerce there are already thousands of players: small, medium, large and giant. But Temu is focused on offering ultra-cheap imitations and its marketing campaigns are aggressive, although it has raised questions for alleged mishandling of personal data, alleged unfair competition practices and possible violation of labor rights.
The “Temu effect” is already felt in Colombia; an emerging market for ecommerce in which, according to the Colombian Chamber of Electronic Commerce, $62.1 billion in sales were recorded during 2023, and this year growth of almost 18% is expected.
Shake up the market
For now, Temu has shaken every market it reaches. In the United States, in a single quarter, the application was downloaded 30 million times and remains very strong after the debut in 2022.
Customers can find Apple Watch replicas for US$10 and the hook has worked because they complement it with heavy spending on advertising, it is estimated that last year it totaled US$2 billion.
Colombia looks attractive because it is a place in which ecommerce still does not have wide penetration among the inhabitants, but last year 370.5 million transactions were registered, with an average ticket of $165,370.
The key to low prices lies in manufacturing: products come from China with cheaper labor that deflates the cost and results in a final price that other players cannot match.
Its owner, PDD Holdings, has a market valuation of more than $204 billion. In the first quarter of 2024 it reported sales of US$12 billion.
Álvaro Umaña, corporate affairs manager of the Ccce, told LR that “Temu’s incursion into the Colombian market introduces dynamism in the field of electronic commerce.”
“Its aggressive commercial approach is manifested through continuous promotions, designed to capture the attention of consumers, especially in periods of economic crisis. “This strategy could intensify competition in the sector, benefiting consumers by offering more affordable prices and a greater diversity of products,” he added.
But he acknowledged that “it represents a significant challenge for local merchants and other platforms who find themselves needing to adjust their pricing and marketing strategies to preserve their share in the face of Temu’s tactics.”
Competition of the SIC
Juan Carlos Portilla, professor of international financial law at the University of La Sabana, explained that the competent authority to protect the data is the Superintendence of Industry and Commerce, SIC.
“The problem with these platforms is that many of them are not incorporated in the country, so there may be a jurisdiction problem in the event that a consumer sees their rights undermined,” he explained.
He added that there are many unknowns that may arise in the transaction: where was the purchase made? Is the platform established in Colombia? If it is not incorporated in Colombia, to which jurisdiction does it belong?
“What I would tell Colombians is to be careful where you make your purchases; “Do a very simple due diligence process, spend some time before entering the card data because, precisely, that is a problem that the world is experiencing with the platform,” he mentioned.
