Economist Podcasts Money Talks: Why Amazon should be afraid of Temu
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Mar 21, 2024 Josh Silverman, CEO of Etsy, joins the conversation to explore the looming competition between Amazon and rising e-commerce star Temu. He discusses how Temu's unique model of low-cost products from China, combined with strong advertising, poses a challenge to established giants. The dialogue dives into Etsy's role amidst this shifting landscape, highlighting its focus on handcrafted goods while navigating aggressive pricing strategies. Silverman also reflects on how emerging players could redefine consumer experiences and market dynamics.
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The Temu vs. Amazon Race
- Alice Fulwood and Tom Lee-Devlin raced to see if Temu could beat Amazon's delivery speed.
- Tom ordered friendship bracelet beads from Amazon, while Alice ordered from Temu.
Temu's Rise in US E-Commerce
- Temu's aggressive marketing and low prices, shipping directly from Chinese factories, have fueled its rapid growth.
- It's gaining market share despite ethical concerns about forced labor and unsustainable pricing.
Temu's Disruptive Model
- Temu's direct-from-manufacturer model undercuts competitors on price but raises sustainability questions.
- Its aggressive marketing increases customer acquisition costs for everyone, especially smaller platforms like Etsy.