Temu Thrives in the Japanese Market

According to a report from Nikkei, Pinduoduo‘s cross-border e-commerce platform, Temu, has shown impressive performance in the Japanese market.

Since officially launching services in Japan in July 2023, Temu’s monthly user base has continued to rise, reaching a staggering 15.5 million users in January 2024, with a monthly growth rate of 2.2 million users. This number surpasses the average user base of Japan’s three major mainstream e-commerce platforms – “Amazon Shopping,” “Rakuten Market,” and “Yahoo! Shopping” (approximately 29.7 million users) by 52%, demonstrating Temu’s strong competitiveness in the Japanese market.

The report highlights that Temu’s success lies in its unique business model and precise market positioning. Temu uses low prices and high-quality products as its weapons, successfully attracting a large number of Japanese consumers. In Temu’s promotional activities, a variety of affordable products are available, such as T-shirts priced at only 890 Japanese yen (approximately 42.6 RMB), 15 towels for 584 Japanese yen (approximately 27.9 RMB), and small backpacks for 360 Japanese yen (approximately 17.2 RMB). This strategy of offering low prices and high quality has earned Temu a good reputation among Japanese consumers.

In addition to its price advantage, Temu has established an independent supply chain by directly trading with small and medium-sized enterprises in China, ensuring the quality of its products. This unique supply chain model enables Temu to meet consumers’ demands for both price and quality, distinguishing itself in the Japanese market.

Meanwhile, Temu’s marketing activities in the Japanese market have also been remarkably effective. By offering thousands of yen in coupons daily and continuous promotional activities, Temu has successfully attracted a large number of users’ attention and engagement. This proactive marketing strategy has not only increased Temu’s visibility but also enhanced user loyalty and engagement.

In addition to Temu, another Chinese e-commerce giant, SHEIN, has also achieved significant results in the Japanese market. According to data from VALUES, SHEIN’s user base in Japan reached 8.39 million in January 2024, a year-on-year increase of 2.3 times. SHEIN primarily offers affordable and fashionable clothing, popular among young women in their teens and twenties. Like Temu, SHEIN has expanded its market share through bold promotional activities.

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