On February 20, Temu, the Chinese cross-border e-commerce platform under Pinduoduo, announced the launch of its first semi-hosted site in Southeast Asia – the Philippines station – marking a new phase in its global expansion strategy. Prior to this, Temu had already established multiple new sites in Europe and plans to launch its UAE station on February 28.
According to eMarketer, the Philippines has a youthful demographic with an average age of 25. Over 73% of its 110 million population are internet users. As the only country in Southeast Asia with an English penetration rate of over 90%, the Philippines has a youthful consumer base (58% of the population under 30 years old) and a high Internet penetration rate (76%).
The youthful and highly active user base is suitable for Temu's cost-effective positioning. Compared with Indonesia, Vietnam and other markets with strict localization requirements, the Philippines foreign investment policy is relatively relaxed, suitable for model testing. According to GlobalData, the Philippine e-commerce market size is expected to reach USD 24.1 billion (CNY 175 billion) in 2024, with a CAGR of 22% from 2023-2025.
The core of Temu's Philippine semi-hosted model lies in "platform empowerment and seller autonomy," balancing risk control with local supply chain activation. Unlike its fully-hosted model, the semi-hosted approach allows sellers to independently manage product listings and pricing while taking responsibility for logistics fulfillment. European operational data shows this model reduces seller costs by 20%-30% and boosts order fulfillment rates to 95%. Its implementation in the Philippines is expected to attract small and medium-sized sellers to rapidly enter the market.
Facing fierce competition from Shopee and Lazada, which collectively hold over 60% market share in the Philippines, Temu is adopting differentiated strategies including aggressive pricing, category specialization, and social traffic tactics. Its product prices are 30%-50% lower than Shopee's, achieved through "direct factory sourcing + platform subsidies" that eliminate middleman costs. Temu strategically focuses on electronics, creating differentiation from Shopee's fashion-centric offerings. Additionally, it has localized Pinduoduo's signature social engagement tactics through regional campaigns. In 2024, Temu's global downloads surged to 550 million, representing 69% year-over-year growth.