On July 1, Pinduoduo's（拼多多） cross-border e-commerce platform, Temu, officially announced its launch in Japan, marking a significant milestone as it enters the Asian market for the first time. Just half a month later, Temu expanded to its second stop in Asia, South Korea, further expanding its presence in the Asian business landscape.
In the South Korean market, Temu continues to focus on offering high cost-effectiveness, with product prices ranging from KRW 1000 to 30,000 (approximately CNY 5 to 168). However, the initial performance in the South Korean market did not meet expectations, ranking 163rd among similar apps in the AppStore, with only 10 ratings and two reviews. In contrast, Temu quickly rose to become the top shopping app in the Japanese market in less than half a month. Despite the initial challenges, there remains considerable growth potential for Temu in South Korea.
In September 2022, Temu made its debut in the US market and quickly climbed to the top of the shopping app charts. Since then, Temu has maintained an astonishing pace of expansion, going online in 23 countries in less than a year, ranking high on most countries' application charts. Currently, Temu has successfully entered countries such as Australia, Austria, Belgium, Canada, Finland, France, Germany, Greece, Ireland, Italy, Japan, Luxembourg, Mexico, the Netherlands, New Zealand, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, and the United Kingdom.
Compared to other markets, South Korea stands out for its mature e-commerce market, high penetration rate, and well-developed online payment and logistics infrastructure. In the South Korean e-commerce market, Temu faces strong competition from local players like Coupang and Naver, who hold leading positions. Additionally, Alibaba's AliExpress（速卖通） has long been strategically positioned in the South Korean market, posing a significant challenge to Temu. Moreover, vertical players such as Nike, Cider, and KREAM are among the top 10 shopping platforms in South Korea, intensifying competition in the local e-commerce market. Due to factors such as market access and intense competition, Amazon has not formally entered the South Korean market to this day.
Since 2022, AliExpress has increased its investment in the South Korean market, including enhancing marketing efforts, providing subsidies, and introducing sea freight express services. In March of this year, AliExpress also launched the "Choice" service in the South Korean market, which offers 3-5 day delivery, free shipping, and hassle-free returns, focusing on cost-effectiveness while upgrading delivery guarantees, resulting in significant customer flow growth. Currently, AliExpress's average usage time per user in South Korea has surpassed that of the local e-commerce giant Coupang.
Temu adopts a consistent operational strategy in South Korea, partnering with third-party logistics service providers to offer "last-mile" logistics services to local consumers. EqualOcean learns that Temu's current logistics partners in South Korea include Hanjin, Korea ePOST, KYOUNGDONG, and CJ Group.