Deloitte: Poland enters the phase of economic expansion

The divergence of economic moods in Poland...

Two Years On: War in Ukraine and Its Global Impact

On February 24, 2022, a full-scale Russian...

Temu Challenges Polish E-Commerce Dominance

COMMERCETemu Challenges Polish E-Commerce Dominance

In the light of the December report by Mediapanel, which shed light on the dynamics of the e-commerce market in Poland, the success of the Temu platform is notable. Although Allegro maintained its leading position in December of last year, with 19.36 million active users, the Chinese e-commerce player recorded a dynamic growth and won 13.63 million consumers, placing it right behind the Polish company.

While Allegro reported a slight decline of 1.75%, Temu recorded an increase in the number of active users by 3.63%. Currently, the Chinese platform is fighting for a leading position, while also defending against competition in the form of Media Expert exceeding their number of registered customers by around 0.5 million.

It’s impossible not to recognize the growing influence of the Temu platform on the Polish e-commerce market. Its impressive user growth compared to the competition deserves attention and provides an interesting starting point for analysis of the dynamic changes in the electronic commerce landscape in Poland.

In my opinion, the main reason for TEMU’s success is the effective implementation of a marketing strategy that stands out against what we see from our local players. Empik and Allego mainly focus on branding strategy, sometimes supported by co-branded campaigns with the biggest Polish brands. Meanwhile, TEMU heavily invests in product marketing based on short video forms broadcast on TikTok or Instagram. This resonates with younger generations and involves the time they spend daily on their smartphones. In addition, TEMU selects products for these campaigns that, in many cases, are hard to find in Polish marketplaces.

Could a strategic adjustment allow local companies to compete more intensely with TEMU? In my opinion, this will be quite difficult. Remember that both Empik and Allegro sell brands on their marketplaces that are more recognizable and carry out regular branding activities. On the other hand, TEMU focuses on product marketing, which puts the sold product, its functionality, uniqueness, or ingenuity, at the center.

TEMU attracts customer attention on Instagram and TikTok, using clips that present the most interesting and functional products, even those hard to find in networks like Flying Tiger. This seems to be the key to recent success and impressive growth.

The products which one can buy on TEMU are simply not visible on Allegro – but on the other hand, customers probably are not looking for them there. It’s hard to avoid a comparison to Wish | Shop and Save, which, in its time, especially between 2016-2020, was growing astronomically year by year in the USA. The company founded by a Polish entrepreneur was developing so fast, that at one point it started sponsoring the LA Lakers.

Later it turned out that customers, after their initial enthusiasm for cheap, mediocre quality gadgets, started to put the platform aside. I think the same thing can happen to TEMU, especially since it has happened to other platforms before. People will turn away from low-quality products, and over time, education and the growing importance of ethical and ecological aspects in the purchasing decisions of Polish consumers will matter.

Comment by Tomasz Woźniak, CEO & Partner at Future Mind, on the position of the Chinese platform Temu in the Polish e-commerce market.

Check out our other content
Related Articles
The Latest Articles