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Money Talks: Why Amazon should be afraid of Temu
Money Talks from The Economist
E-commerce Model Evolution
The emerging e-commerce model offers rock bottom prices in exchange for longer fulfillment times, reminiscent of early big tech platforms that offered services at impossibly low prices to gain market share. It is noted that the price differentials may not be sustainable in the long term, and the focus on aggressive spending and market expansion raises concerns about future profitability. The current price proposition is alluring, but its sustainability remains to be seen, especially as the company faces scrutiny from US lawmakers amidst an unfriendly climate for big Chinese firms in Washington.
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