Part 2 - How Temu conquered the world

It’s become one of the world’s biggest online shopping marketplaces, churning out more than a million parcels to be flown to customers around the globe every day.

Here in Australia, more than 1.2 million of us shop on Temu every month – and it’s our most downloaded app.

But how did the Chinese start-up skyrocket to global online megastore - selling everything from clothing and household items - less than two years after launching?

Dr Shasha Wang from QUT joins Sacha Barbour Gatt to explain Temu’s unique recipe for success in commerce and its meteoric rise.

A Temu spokesperson says:

Claims that Temu's competitive pricing is achieved through exploitative labour
practices are unfounded. We urge a closer examination of our approach, which
hinges on removing unnecessary expenses. Our cost-efficiency is due to a direct
connection between consumers and manufacturers, cutting out middlemen and their
markups. Our model also streamlines the logistics of production and distribution,
allowing us to offer lower prices to our customers.

Many merchants on Temu are reputable manufacturers with advanced production
facilities, supplying to well-known US brands and retailers like Amazon, Walmart,
and Target. These manufacturers adhere to high industry standards and are
recognised for their quality production.

Temu is dedicated to upholding ethical labour practices. Our Third-Party Code of
Conduct forbids any form of forced, child, or penal labour and requires adherence to
all local labour laws, including those related to wages, working hours, voluntary
employment, freedom of association, and the right to collective bargaining. We
demand strict compliance with all regulatory standards and reserve the right to
sever ties with any business that breaches our Code of Conduct or the law.

As for the concern about forced labour in product compliance, we take this issue
seriously. Our standards and practices align with those of major U.S. e-commerce
platforms, such as Amazon, eBay, and Etsy, rendering any allegations completely
ungrounded.

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