Chinese Online Shopping Platform, Temu, Under Fire for Aggressive Marketing Tactics in South Korea
Seoul, Feb 20 (IANS) – The Chinese online shopping platform Temu has come under scrutiny for its aggressive marketing tactics in South Korea, as it lures customers with free gifts, credits, and steep discounts. The direct purchase app, operated by Chinese company PDD Holdings, has quickly become a popular shopping destination for budget-conscious Korean consumers.
The marketing strategies employed by Temu include discounts of up to 90 percent, free one-time returns within 90 days of purchase, and rewards of up to hundreds of thousands of won. To obtain credits and freebies, existing subscribers are required to invite friends through the app’s refer-a-friend program. Both existing and new subscribers can participate in daily reward events, but they must invite a minimum number of friends to receive the advertised benefits.
Temu made its debut in Korea in July last year, entering the competitive market to rival Chinese e-commerce giant AliExpress, which launched in 2018. Despite longer delivery times and unstable product quality, Temu has seen a significant increase in subscribers, with the number growing to 5.7 million in January from 520,000 in August last year, according to mobile market research firm WiseApp. Young Korean consumers have been actively sharing their unboxing experiences of Temu products on social media platforms, contributing to the app’s popularity.
The influx of Chinese online shopping platforms such as Temu and AliExpress has raised concerns about their impact on the local market and their aggressive marketing tactics in South Korea. The companies’ ability to offer unbeatable low prices and attractive marketing promotions has allowed them to gain a strong foothold in the Korean market, posing a challenge to local retailers.
The rise of Temu in South Korea has prompted industry sources to closely monitor the impact of Chinese online shopping platforms on the local economy and consumer behavior. The growing number of subscribers and the appeal of free gifts and credits have drawn attention to the competitive landscape as Chinese e-commerce companies continue to expand their presence in the global market.
In conclusion, the surge in subscribers and the aggressive marketing tactics of Temu in South Korea have raised concerns about the impact of Chinese online shopping platforms on the local economy and consumer behavior, as they continue to gain traction in the competitive retail market.
–IANS
na/
