Temu expands UK operations with local supplier strategy

Temu, the Chinese online retailer, is escalating its challenge to traditional high street stores by recruiting UK-based suppliers to sell products on its rapidly growing shopping app.

The company, owned by PDD Holdings, has until now primarily offered goods from Chinese suppliers with delivery times of one to two weeks. However, its new "local" initiative now allows customers to purchase products from domestic suppliers that can arrive in just one or two days.

The locally-sourced products are predominantly bulky items such as furniture, tents, winter coats, and kitchen appliances that are uneconomical to ship from China.

A Temu spokesman explained: "Temu is actively recruiting UK-based sellers to broaden the range of affordable, quality products on our platform. This initiative reflects our strategy to support local businesses while offering customers a more diverse selection of goods."

Temu has experienced remarkable growth, attracting 12.1 million regular UK shoppers in just 19 months through aggressive social media advertising and extremely low prices. Market intelligence firm Sensor Tower reports that more UK consumers now use Temu's app than Amazon or eBay.

The company has strategically hired directors from eBay to develop its local business and is reportedly planning to expand its UK operations, including opening a London office and recruiting additional staff.

Temu's rise comes amid a challenging retail landscape, with high street retailers facing increased employment costs. The retailer has also benefited from tax loopholes, shipping low-value packages directly to customers and avoiding import duties.

While the European Union is moving to abolish such tax exemptions, the UK government appears supportive, particularly with the anticipated £50 billion flotation of another Chinese retailer, Shein, planned for next year.

The company is simultaneously expanding its local supplier strategy in the US and continental Europe, positioning itself as a disruptive force in global ecommerce.

However, Temu is not without controversy. In the US, it faces a lawsuit from the Arkansas attorney general, who claims the app is designed to harvest customer data—allegations Temu strongly denies.



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