"Some products will be ordered within 10 minutes of being put on the shelves, and we have not yet met sellers who have not issued orders. In the April 18 FBIF livestream, Temu presented the current state of the food category.
On April 18, 2024, Temu launched its first food investment promotion, and introduced the investment promotion rules in the FBIF live broadcast on the same day. It is reported that a number of large enterprises have contacted Temu during the live broadcast.
Temu launched the food category on March 15 this year (at the same time, there is also a semi-managed model, and Temu did not have a food category in the fully managed mode), and now it is open to sites in the United States, Canada and the United Kingdom. It is understood that at present, Temu food has more than 10,000 daily orders, with daily growth, and the dynamic sales rate is more than 80%.
Temu said in the live broadcast that the currently open sub-categories mainly include leisure snacks, convenient fast food, grain and oil seasoning, sugar and drink, etc.
Pilox Mango Peel Candy, Image Credit: Temu
It is reported that the daily order amount of Temu's full categories will exceed 10 million US dollars in 2023, and the food category will be opened on the basis of the existing large-scale on the platform. Temu said during the live broadcast: "The traffic of the food category is not from 0 to 1, but has a good soil. ”
After its launch in September 2022, Temu not only topped the global app download charts, but also became the second growth curve of its parent company Pinduoduo[1]. At present, Temu has successively landed in the United Kingdom, France, Germany, Japan, South Korea, the Philippines, Malaysia and other places, and has 60 national sites around the world.
A year and a half after its establishment, Temu opened its food category to attract investment. The advantages of Temu's "semi-managed" model include:
- 0 commission, 0 advertising traffic fee, the possibility of low-cost test of the water;
- The platform is responsible for overseas marketing promotion and foreign language customer service to solve the big pain points of domestic food sellers;
- The platform can assist in recommending third-party overseas warehouses and FDA qualification certification bodies to save the workload in the early stage;
- 100% one-to-one support for food categories, full assistance and guidance.
For more information about Temu food investment, please watch the live broadcast of FBIF Dialogue with Temu: Temu food category is open for investment for the first time, and the global market is soaring with Temu!
In addition, including Temu, Lawson, JD Supermarket, Freshippo, Metro, Hi Tego, Hao Sale, Fosun Group, Rakuten Group, Make a Friend, Dewu and other channel parties have confirmed to join the FBIF2024 channel series of activities. Welcome to swipe to the end of the article and scan the QR code to learn about FBIF2024 channel activities!
1. Solve the pain points of compliance, supply chain, marketing and other overseas going overseas
Food and beverage going overseas faces a variety of challenges, the most intuitive challenges such as compliance, supply chain construction, marketing, etc. It is understood that Temu has prepared a new model to deal with a series of pain points for domestic food brands to go overseas.
Youchen Meat Muffins, Image Credit: Temu
The first is the issue of compliance. Temu will provide partners with assistance throughout the compliance process, such as assisting recommending organizations in applying for FDA qualification.
In terms of supply chain, Temu will also connect overseas warehouse resources for partners. The cooperation model of the Temu food category is internally called the "semi-managed model". The semi-custodian model corresponds to the fully custodian model that Temu mainly applied before, that is, the seller sends the goods to the platform's domestic warehouse, and then the platform ships the goods to overseas consumers.
Akuan beef noodles, photo credit: Temu
The semi-custodian model requires the seller to send the goods to the overseas warehouse in the target market, which requires the seller to solve the qualification, commodity inspection, customs declaration, customs clearance and other processes by himself. Temu said that the relevant procedures are not complicated, and some overseas warehouses can provide sellers with auxiliary customs declaration, customs clearance and other services.
If the seller needs it, Temu will directly recommend suitable overseas warehouse resources to the seller, saving the seller's workload of finding a warehouse. After the goods arrive at the overseas warehouses, these warehouses usually have the ability to import orders from the platform with one click, and the difficulty of fulfillment is low.
In terms of marketing and promotion, Temu said during the live broadcast that marketing and promotion are mainly carried out by Temu and do not charge sellers for advertising and traffic. According to Temu, marketing is likely to be a major shortcoming for domestic food sellers, and that the promotion of the platform is responsible for offloading a large part of the burden for Chinese sellers who are not familiar with overseas markets.
In the live broadcast, Temu revealed that the food category is the current development focus of the platform, and it also has corresponding weights in traffic.
Temu said during the live broadcast: "Although there is no large number of advertising promotion in the food category, our sales rate is still very high, and some products will be ordered within 10 minutes of being put on the shelves, and we have not yet met sellers who have not issued orders for 1 day on the shelves." He also said that "a series of advertising campaigns will be carried out for the food category soon".
Temu food category product example, image source: Temu
Another big pain point that Temu solves is foreign language customer service, and Temu currently provides free overseas customer service support. In addition, Temu will provide guidance and assistance on the creation of foreign language labels for product packaging.
"Temu is equivalent to a channel to sell in the global market, which is still very simple for food and beverage (going overseas). Temu summed up in the live broadcast.
Since March 15, the Temu food category has mainly tested the waters of the US market, and then gradually opened the UK and Canadian markets, and other sites will also be opened one after another.
2. "The matter of going to sea can be simpler"
It is understood that at the current stage, Temu food category mainly cooperates with partners in the following four directions:
- Traders with export experience;
- The brand side that forms a brand in China;
- Factories with experience in export processing;
- FDA-qualified sellers.
As a platform, Temu will provide a relatively complete solution for going overseas, and sellers can also communicate with Temu about relevant resources and channels for FDA qualification, which is a mandatory requirement in the US market, to apply more conveniently.
Image: Temu
In addition to domestic brands, Temu will also include brands in Europe, America, Japan and South Korea to enrich the breadth of food categories.
The cooperation process can be summarized as follows:
Seller:
1. Seller to open a store: apply to open a store in Temu;
2. Create products: provide product information such as pictures, etc.;
3. Declared price processing: the declared price is provided;
4. The seller ships the goods to the third-party overseas warehouse: this process can be skipped if there is already inventory overseas;
5. Add inventory and upload qualifications: When the goods arrive at the overseas warehouse, add inventory and upload qualifications in the background;
6. Additional station sales: the overseas warehouse imports the order from the platform and delivers the order, and the order number is returned to the platform to complete the fulfillment.
In terms of fees, Temu currently implements 0 commission and 0 advertising fees. When opening a store, mainland entities need to pay a deposit of 10,000 yuan, while Hong Kong entities need to pay a deposit of 2,000 US dollars. At present, the whole process fee on the Temu platform is only the deposit, and no other fees are involved.
平台(Ago):
1. Assist merchants in price declaration;
2. Add the goods to the United States or other sites for sale;
3. Provide free customer service;
4. Provide free traffic promotion;
5. It can assist in recommending third-party warehouse resources and FDA qualification institutions.
In the category of food, Temu said during the live broadcast that it is a platform with a relatively low threshold at present, and it is also a platform that understands domestic sellers better: "We have solved the things that domestic sellers find more difficult, and you can think about going to sea more simply." ”
Since sellers only bear the cost of goods and warehousing logistics in the turnover process, the hidden advantage of Temu is that the cost of payment is low. If the seller has some products that do not sell well after being put on the shelves, they can flexibly change the style immediately without worrying about the sunk marketing and promotion costs.
Since the U.S. market is a market with more Temu accumulation and a larger body, Temu currently encourages domestic sellers to test the U.S. market first.
In general, Temu food category is the first to attract investment, which has brought a series of resources including but not limited to fees, traffic, warehousing, and consulting to domestic sellers who are currently settled. The idea of "making the food category the first on the site" may not be just a slogan of Temu.
Profit-making merchants is the appearance, and profit-making consumers is the essence of the semi-custodial model. By concentrating marketing, customer service and other resources within the Temu team, only by reducing the cost of domestic and global delivery of goods can we enter new markets at a lower price.
In the live broadcast of FBIF, Temu said that the full custody model of the food category is also in preparation. If the future of food can also realize that the seller can send a domestic warehouse, the biggest challenges of food and beverage going overseas will be solved.
We look forward to the day when it will be easier for food and beverages to go overseas.
At present, Temu, Lawson, JD Supermarket, Freshippo, Metro, Hi Tegou, Hao Sale, Fosun Group, Rakuten Group, Make a Friend, Dewu and other channel parties have confirmed to join the FBIF2024 channel series of activities. Scan the code to learn about FBIF2024 channel activities!
Reference Sources:
[1] Zheng Pengfei, "Temu's Endless Expansion," November 1, 2023, Yuanchuan Research Institute
This article is the original of FBIF Food and Beverage Innovation, author: cake, editor: Bobo, please contact for authorization for reprinting.