Temu: Transitioning to Semi-Managed Mode for Aggressive Global Expansion

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Pinduoduo’s Temu, launched in semi-managed mode, is still adjusting. Employees from Duoduo Maicai, Pinduoduo’s grocery service, have been reassigned to Temu. Concurrently, Temu’s headquarters is gradually relocating to Shenzhen, and its business focus is also shifting towards this city.

The transferred employees mainly originate from the Duoduo Maicai division, previously considered one of Pinduoduo’s most formidable teams. Now, armed with extensive experience and robust business capabilities, they are poised to participate in Temu’s global competition. According to third-party sources, Temu’s transaction volume target for this year is $60 billion, with a growth rate of 233%, reflecting its aggressive overseas expansion objectives.

On the other hand, Temu’s relocation to Shenzhen may be aimed at gaining better geographical and industrial cluster advantages. As the new headquarters for a platform covering all product categories, Shenzhen holds promise for better development in areas such as 3C digital, home appliances, and furniture. Additionally, Shenzhen offers opportunities for supplying higher-value products.

In the semi-managed mode, Temu entrusts product transportation to merchants for overseas warehousing and distribution. This significantly shortens delivery times, particularly benefiting large-item products and enhancing the user experience.

While Temu expanded to 50 sites in global overseas markets in less than two years using the fully managed mode, the diminishing advantage of this mode due to competitors’ emulation prompted the introduction of the semi-managed mode. This aims to attract more merchants and provide new inventory clearance channels.

Ultimately, whether in fully managed or semi-managed mode, competition in the supply chain is key. All platforms strive to increase the quantity and quality of sellers and enrich their product categories. However, the ultimate goal remains to provide consumers with a superior shopping experience.

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