2023-10-19 02:50:49
The Temu online shopping application is enjoying tremendous popularity in Quebec, as well as throughout North America and Europe.
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The platform of Chinese origin offers many items at ridiculous prices.
“It’s a bit like the Dollarama of the Web,” mentioned the co-founder of Amplio Stratégies, Philippe Richard Bertrand, in an interview with LCN.
Several experts are concerned regarding the collection of personal data carried out by Temu.
“We try to have items at ridiculous prices to try to convert the first customers. What we want is for you to open a Temu account and then Temu will sell your data to other retailers who will make your life miserable by sending you a multitude of emails and promotional offers. », explains Mr. Bertrand.
Furthermore, Temu stands out for its fast delivery, despite the fact that the products are sent from China.
The supply chain is well-oiled, maintains Philippe Richard Bertrand, but puts enormous pressure on North American delivery services.
“There are so many orders. These are millions of orders for North America, which means that Canada Post, FedEx or DHL cannot afford to refuse a customer like that,” he explains.
Surprisingly absent in its country of origin, Temu is increasingly trying to make its place in the West, through deals and aggressive marketing.
“When you pay in Canadian or American dollars, they accumulate currency. They do not change the currency to yuan. They keep the foreign currency. That is even more dangerous for Canada, because it causes China to accumulate Canadian dollars,” says Philippe Richard Bertrand.
According to the American research firm Grizzly, Temu would lose $30 per order. If this business model seems absurd, it is not abnormal, claims Mr. Bertrand. This is what he calls “customer acquisition cost.”
It involves first hooking customers with ridiculous prices, then bombarding them with advertisements.
“Every company that does e-commerce has a customer acquisition cost and the idea is to keep it as low as possible,” says the expert.
To see the full interview, watch the video above.
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