Temu in France launched in April 2023, and now just over a year on Fox Intelligence have published a report on their performance. Spoiler alert, they’re doing just great and are already bigger than Shein!
Temu Local Fulfilment
But first an update on Temu logistics which also impacts France. Merchants based in the buyer’s country can now sell on Temu – when the marketplace launched it was very much Chinese manufacturers selling with all fulfilment coming from Temu’s warehouse, typically flown to the recipient by air with the last mile handled by a local carrier (usually in the UK it’s Evri).
Now however, Temu are accepting merchants to sell on the marketplace who can handle their own logistics and despatch from local warehouses. As well as cutting the delivery time to three to four days, it also opens up a lot more categories, like furniture and gym equipment and other bulky and heavy merchandise that don’t do so well for air freight. If you type “local warehouse” into the UK site you’ll find many of these locally fulfilled products
Local warehouse fulfilment is now available in the US, UK, France, Germany etc. It also lessens the de minimis debate because the goods go the normal customs route and not the de minimis route so will please government tax collectors!
Temu in France
Turning to our French neighbours, Temu in France has performed spectacularly well and their key statistics are frankly impressive. You might not want to join Temu yet for a variety of brand protection and other similar reasons, but the reality is that Temu is growing so fast that as a channel to market it will soon become to big to be ignored forever. Yes, you may have ongoing concerns, but the old adage of selling on the platforms where your consumers are shopping will soon become overwhelming significant that watching Temu is a must for all ecommerce retailers.
- Since its launch in April 2023, Temu managed to surpass one of its main competitors, Shein, in terms of market share by value
- In April 2024, nearly 20% of Temu’s customers were new to the platform
- In France 96% of Temu customers in the last 90 days were repeat customers
- Temu consumers are highly active online, spending an average of 2,500 euros per year compared to the market average of 1,800 euros
- Frequent shoppers prefer cheaper items, with an average price per item of €13 compared to the overall e-commerce average of €15
- Frequent shoppers average basket value is also lower, at €55 compared to €65 for the market average
- Temu has a relatively balanced customer base in terms of gender, with a strong presence of Gen Xers and Baby Boomers, illustrating its ability to attract a more mature market segment
Temu’s growth potential remains promising, demonstrated by its ability to maintain a loyal customer base while attracting a significant number of new consumers each month.
– Fox Intelligence
With a strategy focused on continuously improving the customer experience and expanding its product range, Temu is well-positioned to continue its growth and strengthen its presence in the French ecommerce market.