My father-in-law, a fine artist, buys his art supplies on Temu.
Not just for the prices.
For the selection.
That derailed my thinking about Temu. Because it signals something bigger than just another bargain site.
Temu was the most downloaded iPhone app in America in 2024. It hit $50 billion in sales, TRIPLING the previous year’s numbers.
Even Amazon launched a clone called Amazon Haul.
What’s happening with Temu is fascinating:
- They move at “1000 miles an hour” (per Marketplace Pulse)
- They shifted 50% of US inventory to local warehouses in months
- They’re redefining what “cheap” means
- They’re changing how we think about selection
You might remember how the dog brain gets excited by bargains while the tank brain worries about quality. Temu’s genius is in reducing that friction: prices so low that the risk feels negligible.
But here’s what should have product makers on edge: Temu is no longer winning only on price.
They’re winning on:
- Vast selection
- Fast shipping
- Easy returns
- Addictive shopping experience
The $5 purses and $2 wireless headphones aren’t the story.
To me, the story is how mind-blowingly fast consumers of every demographic adapted to this new normal.
We’ve never seen anything like it.
Your grandma probably knows what Temu is, and maybe she’s shopping on it right now. So are tweens and teens — regardless of whether or not that’s a great thing.
For innovators, this means:
- Speed is everything
- Selection matters more than ever
- Price resistance is evolving
- The old rules are changing fast
Action for today: Spy on your own product through the Temu lens. What happens when similar items become available for 70% less? How will you compete when price isn’t your moat?
What’s your strategy for the everything-changes-again economy?
Laurier
P.S. When Amazon copies your entire business model, you know you’re onto something! But remember: Amazon itself was once a nutty idea about selling books online.