Pinduoduo, a China-based e-commerce company, has recently established a new online shopping website overseas. As part of its expansion abroad, the company launched Temu, which could potentially be the latest competitor of Amazon. This one of the biggest e-commerce sites is accused of worse labor practices.
Pinduoduo Opens US Online Shopping Site
(Photo : Zhong Zhi/Getty Images for CNBC International)
NANSHA, CHINA - NOVEMBER 18: David Liu, VP of Stratagy, Pinduoduo speaks with Arjun Kharpal, Senior Correspondent of CNBC during Day 2 of CNBC East Tech West at LN Garden Hotel Nansha Guangzhou on November 18, 2020 in Nansha, Guangzhou, China.
The industry of e-commerce has been growing over the past years with the likes of Amazon, which is still dominating this field. However, the Seattle-based firm should not be laid back with the idea that it's monopolizing this service.
Last month, Pinduoduo announced its plans to enter the United States with a business model that could match Amazon, per Fortune's previous report. Now, it seems that it has already happened.
According to a recent report by CNBC, the Chinese firm has succeeded in its foreign push upon launching Temu, its online shopping site in North America.
The site was activated on Thursday, Sept. 1, for customers across the US. Just like any other e-commerce site, it offers a wide variety of products, from home equipment to clothing and other stuff.
Pinduoduo has created a ripple in this major instance, particularly showing its presence against the powerhouse Amazon in the west. In China, its main competitors include JD.com and Alibaba.
Despite its short stint as an e-commerce firm, it has already managed to surpass these companies with a longer tenure than it. It was established in 2015, yet it has already made waves worldwide.
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Pinduoduo Needs to Survive the US Market
The company's cross-border website Temu presents products that mostly come from China. According to the report, the shipment of goods to the US might need at least seven business days to complete.
Interestingly, Pinduoduo will not charge a shipping fee for orders that will exceed $49. However, in order to thrive on foreign soil, there's a need to improve its branding, especially if it's going against Amazon, a very established brand in the region.
As per WPIC CEO Jacob Cooke, Temu should earn the customers' trust and awareness in the US before it grows. For those unfamiliar, Cooke is a marketing expert who helps foreign clients sell their products in China.
Cooke added that Temu is selling many products at a very affordable price. This alone might be enough to attract potential buyers in the long run.
Aside from that, Pinduoduo has a strong connection to low-cost manufacturers in its country of origin. The good news is that they might not have yet kept in touch with the companies based in the US.
As a result, the e-commerce giant will aim to target consumers who prefer buying low-cost products. With the competitive discounts that it offers for some of its goods, there's no wonder that it might survive the harsh US market in the succeeding years.
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Written by Joseph Henry
