Suppliers in Europe voice concerns: Temu intends to peddle edibles
In a bold move to diversify their product offerings, at least one of the budget-friendly platforms, Temu, is planning to venture into the food sector. This announcement comes after the success of Temu and Shein, which have been dominating the market with their focus on clothing, electronics, entertainment, and home goods.
According to recent reports, Temu is specifically targeting food products made in Europe for the European market. The company has established a dedicated food team and is reaching out to European suppliers, particularly small manufacturers, to offer a diverse assortment and improve local service.
Temu's strategy is to build a "from Europe for Europe" approach, with plans to enter European grocery markets such as Germany and Switzerland, where it already sells products like meat, drinks, and sweets. However, there is no confirmed information about Shein planning a similar food expansion at this time.
The sales figures for Temu and Shein have been significantly higher than those of traditional retailers like Zara. In 2024, Zara reported sales of 6.1 billion euros, while the combined sales of Temu and Shein were nearly 100 billion euros last year. This significant difference underscores the success of the budget-friendly platforms' business model, which allows them to offer a wide range of products at low prices, with constant discounts and free shipping.
As they expand into new categories, Temu and Shein continue to prove their adaptability and commitment to meeting the needs of their customers. With their focus on affordability and convenience, these platforms are poised to disrupt the European market and redefine the shopping experience for millions of consumers.
[1] Source: TechCrunch [2] Source: Reuters
- In addition to venturing into the food sector, Temu is considering expanding its offerings to include technology, finance, lifestyle, and food-and-drink products, aiming to further diversify its product offerings and cater to a wider range of consumer needs.
- As Temu and Shein continue to dominate the market with their affordable prices and wide range of products, traditional retailers like Zara may need to reevaluate their business strategies in order to remain competitive.
- With the success of Temu's "from Europe for Europe" approach in the food sector, it is possible that Shein may also consider expanding into other areas, such as finance or technology, in order to maintain its position as a leading budget-friendly platform.
