Recently, although not registered to operate in Vietnam, the e-commerce platform Temu has been bustling with cheap sales, launching many promotional programs and paying very high commissions to reach Vietnamese customers.
Many opinions say that with these policies, cheap Chinese goods on Temu will directly gain market share, pushing Vietnamese goods into fierce competition right at home.
Worried that Vietnamese people do not buy Vietnamese products
For about two weeks now, almost every Vietnamese consumer who knows about e-commerce platforms has been constantly mentioning Temu. The reason is that the "storm" of Temu has come with many attractive incentives and discounts that customers find hard to resist.
Temu's huge inventory of fashion, home appliances, and technology products... has surprisingly low prices, with some products discounted up to 90%.
“I saw a lot of items I liked on Temu and they were all on sale. It was like I had just won a jackpot”; “Temu has a huge sale of up to 90%”; “Free shipping and free returns”; “Don’t miss this opportunity! Lowest prices”; “Great deals, can’t miss it”… are the advertisements about Temu on social networks and are enough to make many people curious to visit Temu to shop.
Among these, many people have ignored Vietnamese goods to choose to buy cheap Chinese goods.
Ms. Thu Nga (Dong Da, Hanoi) shared that she ordered a Vietnamese rice cooker for 300,000 VND and had to pay an additional 30,000 VND for shipping. Meanwhile, if she bought a similar Chinese rice cooker on the Temu app, it would only cost 180,000 VND and shipping would be free.
The delivery time was similar but the price difference was too big so she decided to buy Chinese goods.
Not only cheap price, free shipping, but another difference of Temu that is attracting Vietnamese customers is allowing returns within 90 days.
"I only buy small items, costing only a few tens of thousands of dong, but I can also exchange them if I'm not satisfied. It's very suitable for consumers," commented Mr. Manh Hieu (Cau Giay, Hanoi).
Mr. Hieu just bought a phone case on Temu for less than 50,000 VND and returned it, switching to another item after not being satisfied.
Regarding the suspicion of poor quality goods, many customers expressed that they did not regret the money. Because the goods on Temu are cheap, in case of accidentally buying a product that is not as expected, there is not much loss. While that is only a minority, the chance of buying good goods at a cheap price is still higher.
"If Temu wants to stay in the Vietnamese market, it will definitely have to improve its quality. They would not sell poor quality products to affect their reputation. In my opinion, those incidents are only a few in the early stages of operation," a customer shared on Facebook.
It is this consumer psychology that makes many experts worry about the risk that Vietnamese people will not choose Vietnamese goods but buy cheap Chinese goods that are increasingly flooding into Vietnam through e-commerce platforms such as Taobao or now Temu.
"A large number of customers are attracted by Temu and they may leave Vietnamese goods if Temu continues to hit their psychology, which is to provide a diverse source of goods at low prices and apply many incentives," said an economic expert.
However, there are also opinions that we should not worry too much about Vietnamese goods. Because besides the low-cost goods segment, there is still a segment of medium-priced goods - medium quality and a segment of high-priced goods with high quality.
Currently, the purchasing psychology of Vietnamese consumers is gradually changing, increasingly improving, that is, preferring products of average or high quality. Thus, it is very likely that Temu and cheap Chinese products can only gain an advantage in the popular segment.
Huge discounts to reach Vietnamese customers
Temu's affiliate marketing program with a maximum discount of up to 30% is attracting many Vietnamese consumers. This is considered a tactic to gain market share for this e-commerce platform.
When clicking on the link in the Facebook post and installing the Temu app, customers will receive 50,000 VND in their shopping account. If customers share their account registration link and someone uses that link to register, they will receive another 150,000 VND.
The bonus amount can be higher if you invite a user with a Tiktok or YouTube channel with a large number of followers. In addition, customers can also introduce products for sale on the platform and receive a commission sharing from the seller's revenue, up to 30%.
Temu also creates a multi-level commission model. For example, when an account joins the affiliate program through a link, the sharer will receive a certain amount of money. If the lower level member finds more partners, the higher level member will receive an additional 20% commission.
This "unique" policy has caused groups to compete to "market" and invite customers instead of Temu. On social networks, they even established a "Temu Affiliate Community - Vietnam", with more than 28,000 participants to share ways to make money from Temu.
A marketing expert commented that with this tactic, Temu aims to quickly spread its brand in the Vietnamese market. This proves that Temu has carefully prepared a scenario to approach Vietnamese customers to quickly gain market share.
Are Vietnamese businesses affected?
According to Mr. Nguyen Quang Huy - Faculty of Finance - Banking (Nguyen Trai University), the appearance of Temu will have a significant impact on Vietnamese enterprises, especially small and medium enterprises. Because these are the groups that are often unable to compete with Temu's low prices, due to their high production and operating costs.
This forces businesses to find ways to differentiate their products or seek higher-end market segments.
Mr. Huy further analyzed that with the appearance of Temu, a large number of consumers have, are, and will switch to shopping on this platform, reducing the market share of Vietnamese businesses in the low-cost segment.
In particular, products without clear differences in quality are more likely to be chosen by consumers for lower priced products.
“Specifically, the most vulnerable product categories to the emergence of Temu include fashion, accessories, home appliances and consumer electronics. These are products where consumers are easily attracted by low prices and a wide range of choices. The price difference is often not clearly reflected in the quality of these products, making it easy for consumers to switch to cheap products from Temu. However, niche products that require high quality or have local cultural elements such as specialty foods will be less affected,” he said.
However, on the positive side, Mr. Huy said that this is also an opportunity for domestic small and medium enterprises to renew themselves, find new directions and optimize production systems.
Mr. Huy also said that, in addition to the efforts of businesses, there needs to be close involvement of state management agencies.
“The regulatory authority needs to apply strict monitoring measures on imported goods, ensuring compliance with tax laws and quality standards. This helps prevent tax evasion and creates a fair business environment.
The government needs to create logistics support policies for domestic businesses, reduce taxes and costs for domestic transportation services. This helps businesses reduce costs and compete better with foreign rivals,” he suggested.
Meanwhile, according to economic expert Tran Hoang Ngan, it is necessary to immediately have a policy to protect domestic production and domestic goods by setting up trade barriers and taxes to ensure transparency and fairness between domestic and foreign manufacturers and businesses.
TB (according to VTC)Source: https://baohaiduong.vn/hang-viet-dang-bi-temu-de-doa-396523.html
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