A variety of super cheap products with free shipping policy, customers who are not satisfied with the product can immediately return the money, helping Temu "make waves". Are Vietnamese goods threatened by the "storm" Temu?
Attract customers with super cheap products, free shipping
In recent days, Facebook users in Vietnam have frequently seen advertisements about e-commerce platforms. Temu with quite attractive content: “I see a lot of items I like on Tamu and they are all on sale. It's like I just won a jackpot”; “Temu has a huge sale of up to 90%”; “Free shipping and free returns”; “Don't miss this opportunity! Lowest price”; “Great deal, can't miss it”…
Many curious people visit Temu to experience and have to exclaim: "The goods are cheaper than dirt, everything is available".
For example, a pair of sandals costs 28,000 VND; a flashing light set 20,000 VND; a wireless HD security camera 142,609 VND; a smart watch 185,063 VND; a shockproof phone case 37,149 VND; new V5.3 wireless smart sunglasses 275,916 VND; …
“The price is extremely cheap. I bought a few things, the shipping time is quite fast and I can track it,” said Hai Anh (Hanoi).
Mr. Duy, a customer in Hanoi, was also surprised when he ordered some household items at very cheap prices, such as luggage locks for only 35,000 VND. Children's items were also only a few tens of thousands of VND. When he received the goods and was not satisfied, he requested to exchange the goods, Temu immediately refunded the money and informed the customer that the goods did not need to be returned. Thus, the customer received the goods for free.
Not only in Vietnam, the Temu “fever” is “raging” in many countries around the world. Ms. Hoang Vinh (a Vietnamese expatriate in the US) said she bought solar garden lights, curtains, kitchen towels… Short-term items, priced only 1/10 or 1/15 compared to popular brands in the US. The way to return the goods and get a refund is very simple.
Mr. Nguyen Dung (living in Australia) has also purchased goods through Temu several times and has not encountered any problems.
If you are not satisfied with the product, you will receive a refund. For products of not too high value, you can also receive a refund without having to return the product.
However, there have been many comments about the quality of goods sold on Temu. “The quality of the goods is very bad, most of them are shipped from China, there are many fake goods, the photos are very beautiful but the goods are broken when received” is the feeling of Mr. Phan Thang (Hanoi).
Ms. Mai Anh (Hanoi) shared her experience: “Choose Temu because if you are not satisfied with the items under 10 USD, you can get your money back without having to return the item. But it is a bit of a waste of money because you can only buy a few items you like.”
No need to worry too much about Vietnamese goods
Many people are worried that the "storm" of super cheap Chinese Temu goods will "destroy" Vietnamese goods, forcing a series of Vietnamese businesses to close.
Talk to VietNamNet , Mr. Nguyen Binh Minh, Executive Committee Member of Vietnam E-commerce Association (VECOM) said that doing business in a volatile environment, with the appearance of new competitors with cheap prices like Temu, concern is obvious.
However, besides the low-cost segment, there is also a segment of medium-priced goods - medium quality; and a segment of high-priced goods - high quality. Vietnam is in the process of developing from a low-cost market to a medium-priced market. Vietnamese consumer behavior is also gradually changing, requiring goods of medium or high quality, not just choosing low-cost goods. The trend of Vietnamese people prioritizing the use of Vietnamese goods, pride in using Vietnamese goods is also increasing.
“If the business environment is too difficult and people’s incomes are too low, businesses that sell cheap products will have a big advantage. With the current economic environment and average income of Vietnamese people, we don’t need to worry too much,” said Mr. Minh.
According to Mr. Minh, free shipping is not a new policy of Temu but has become a popular marketing strategy used in e-commerce activities for low-cost goods. In Vietnam, "zero-cost shipping" once brought Shopee to the number 1 position in the Vietnamese market.
“In the world, the average cost to acquire an e-commerce customer ranges from 10-20 USD (about 200-500 thousand VND). With low-cost orders, shipping costs account for about 10%, which is only 20-30 thousand VND, this cost is considered cheap to attract more customers. However, to deliver quickly at low cost, e-commerce platforms must deploy their own delivery units.
In many cases, foreign e-commerce businesses cannot deploy their own delivery units in Vietnam and still have to hire external delivery units, which will quickly reduce resources within a certain period of time," Mr. Minh analyzed.
Faced with the risk of social waste and environmental pollution when a series of poor quality goods flood the Vietnamese market through Temu, VECOM representatives said that it is difficult to avoid the consequences of poor quality goods affecting consumers' health or increasing the amount of waste discharged into the environment, because consumers all want to buy and try.
"We need to soon build “Clear policy corridors on how to package, what standards goods must meet, how to protect the health of Vietnamese consumers… These are technical barriers to prevent poor quality products from entering the market, protecting consumers, protecting the business environment and living environment in Vietnam,” Mr. Minh recommended.
At the regular press conference of the Ministry of Industry and Trade on the afternoon of October 23, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan admitted that he himself was "startled" because the product prices on Temu were too cheap. According to the representative of the Department of E-commerce and Digital Economy, the e-commerce site Temu has not officially announced its entry into Vietnam. However, Vietnamese users can still install this app and make purchases. This person also said that there is currently no assessment of the impact of Temu's super cheap sales, because this platform has only appeared in Vietnam. |
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