I've been seeing Temu's ads practically everywhere I go on the Internet for a long time. Shein I haven't noticed. I'm quite sick of them but it doesn't matter. They are here to stay.
Even the Facebook ads were created around Wish- specifically the product ads and features first hacked by wish before they were a Facebook product. Eg discounts and prices on the ads was privately done until Facebook realized it did well from our acct. Similar on Google, many features were “inspired” by wish.
The wide discount structure is wish. Free gift to get you payment info, also Wish.
Know a couple of SHEIN executives here. Their vertically integrated supply chain makes them absolutely the number one in fast fashion, no one can ever respond to changing fashion trends as fast as they can. Also, TikTok shop will become another e-commerce king in the future, assuming TikTok can survive the ban.
So the entire cost structure is fractions of $AMZN, they love to joke about how many G&A employees $AMZN has, it's close to 10x PDD. Significant logistics savings as well, for instance, delivering in a 48H window vs 24H saves almost half price in the last mile. Customers willing to wait a day for half the price...
I'm on Amazon Prime but I've bought some stuff from Temu. Got a good heating pad for $16, which is about 50% off the price of a similar item on Amazon. Same for a finger pulse oximeter. This one has blood pressure also.
But there has also been some real junk, like a knife sharpener that broke in 2 months and a bathroom rug that is as flimsy as a cheap towel.
I believe ( no data but stands to reason ) Temu is designed as an arm of the Chinese Goverment that set out to collect a census of the American public for foreign policy or even eventually war purposes. Please tell me otherwise. The same issue as tick tok.
None of this was discovered by them, they have Wish to thank. Saving years and $100’s of millions in R&D.
Look into wish, they pioneered everything abt this over 10 yrs ago with 100M shoppers. Not even the feed was obvious, and had to be discovered against common recommendations
Interesting that it’s so easy for us to give them credit.
I've been seeing Temu's ads practically everywhere I go on the Internet for a long time. Shein I haven't noticed. I'm quite sick of them but it doesn't matter. They are here to stay.
Yes, looks like they're getting a return on their spend. We'll talk about it more on the podcast this week.
Even the Facebook ads were created around Wish- specifically the product ads and features first hacked by wish before they were a Facebook product. Eg discounts and prices on the ads was privately done until Facebook realized it did well from our acct. Similar on Google, many features were “inspired” by wish.
The wide discount structure is wish. Free gift to get you payment info, also Wish.
These things took years
Know a couple of SHEIN executives here. Their vertically integrated supply chain makes them absolutely the number one in fast fashion, no one can ever respond to changing fashion trends as fast as they can. Also, TikTok shop will become another e-commerce king in the future, assuming TikTok can survive the ban.
Facinating, thank you for sharing Robert!
From X on Temu cost savings v. Amazon
So the entire cost structure is fractions of $AMZN, they love to joke about how many G&A employees $AMZN has, it's close to 10x PDD. Significant logistics savings as well, for instance, delivering in a 48H window vs 24H saves almost half price in the last mile. Customers willing to wait a day for half the price...
https://x.com/GWInvestors/status/1793669621825888551
Interesting! Thanks for sharing, Raymond!
I'm on Amazon Prime but I've bought some stuff from Temu. Got a good heating pad for $16, which is about 50% off the price of a similar item on Amazon. Same for a finger pulse oximeter. This one has blood pressure also.
But there has also been some real junk, like a knife sharpener that broke in 2 months and a bathroom rug that is as flimsy as a cheap towel.
I believe ( no data but stands to reason ) Temu is designed as an arm of the Chinese Goverment that set out to collect a census of the American public for foreign policy or even eventually war purposes. Please tell me otherwise. The same issue as tick tok.
None of this was discovered by them, they have Wish to thank. Saving years and $100’s of millions in R&D.
Look into wish, they pioneered everything abt this over 10 yrs ago with 100M shoppers. Not even the feed was obvious, and had to be discovered against common recommendations
Interesting that it’s so easy for us to give them credit.