Recently, Pinduoduo's cross-border e-commerce platform, Temu, officially launched in Japan, marking its first foray into an Asian country. The site was originally planned to go live on June 22 but was eventually delayed to July 1 following preparations.
Since its official launch in the United States in early September last year, Temu has steadily been expanding its global reach. As of now, Temu has entered 23 countries and regions, including Australia, Austria, Belgium, Canada, Finland, France, Germany, Greece, Ireland, Italy, Japan, Luxembourg, Mexico, Netherlands, New Zealand, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, UK, and the US.
According to Interface News, Temu currently uses third-party logistics providers in Japan, including Sagawa Express, Yamato Transport, and Japan Mail.
Temu continues to employ its low-price promotion strategy. The Japan site offers both English and Japanese languages, with settlements converted to yen. Seller ratings and products are also directly synchronized and migrated. Additionally, Temu celebrated the opening of the Japan site with several promotional discounts. High-value coupons included discounts of 600 yen off 3,700, 1,200 off 7,500, and 3,000 off 15,000. The site offers a maximum discount of up to 90% on promotional items and provides free shipping services.
According to feedback from Japanese consumers, the delivery time for products displayed on the Temu Japan site is about one week. The introduction of Temu, along with its low-price strategy, could potentially impact local e-commerce giants Amazon Japan and Rakuten.
As for why Temu chose Japan as its first stepping stone into the Asian market, it might be due to the country's proximity to China, facilitating easier market research and logistics. Additionally, as a developed nation, Japan has mature economic development, consumer markets, and user awareness. Its logistics and digital infrastructure are also well-developed, eliminating the need for a user education phase for Temu. Current data indicates that by 2023, Japan's e-commerce market size is expected to reach $130 million, maintaining a positive growth trend in the next two years.
Beyond Japan, it's understood that Temu may target Southeast Asian markets next, with merchants revealing that Temu has already started conducting relevant market research.
As Temu's overseas expansion continues to grow, challenges lie ahead including cross-border logistics costs, cultural clashes among different countries, and pressures from the public and regulatory authorities. On June 22, a report from the U.S. House Committee alleged that Temu violated U.S. tariff regulations and exploited tax law loopholes. Subsequently, a recruitment post on LinkedIn indicated that Temu was hiring a Compliance Officer and a trade compliance-specialized lawyer in the U.S. The job description required the development of policies and procedures related to its financial operations, such as anti-money laundering, licensing requirements, and reporting obligations.
