Low-cost online platform Temu started selling food in Germany. Until now, Temu is known in Europe for ultra-low prices, aggressive marketing, and wide variety of affordable goods from Asia across categories like clothing and electronics. The platform's rapid growth and high user engagement are fueled by frequent flash sales, social media campaigns, and a focus on fast delivery.
The rapid rise of the company has also attracted regulatory scrutiny in Europe regarding consumer protection. This summer, the EU Commission preliminarily found Temu in breach of the obligation under the Digital Services Act to properly assess the risks of illegal products being disseminated on its marketplace. Other suspected breaches like potential addictive design features, the transparency of its recommendation systems, and its access to data for researchers will continue to be investigated.
Now, the company wants to become a food provider, with goods from Europe for Europe. It is specifically targeting the European food retail trade – with snacks, confectionery, shelf stable meat products, and beverages. Since Food is one of the most frequently purchased consumer goods, it wants a piece of that pie. With higher purchase frequencies it hopes to create greater customer loyalty. Instead of storing goods itself, Temu brokers offers from European retailers and producers. The company labels suppliers based in Europe with the term "local." With European – local – partners, it wants to avoid import duties – also in view of the impending end of the €150 tariff threshold.