🌀 Remarkable growth of TEMU in France😲

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Foxintelligence published an interesting read on Temu's surging popularity in France.

📈 Rapid Growth

- TEMU launched in April 2023.
- Surpassed Shein in market share within four months.
- Attracted French consumers with low prices and diverse products.
- Aggressive marketing and promotions boosted visibility.

📊 Market Competition

- TEMU has a 11.9% penetration rate, close to Shein's 12.8%.
- TEMU customers spend $122/year, higher than Shein's $94.
- Average of 3.3 purchases per year per customer, similar to Shein.
- Rapid adoption shows effective competition strategies.

👥 Customer Demographics

- Balanced gender representation: TEMU attracts both men and women.
- Strong presence of Generation X and B (index of 145).
- Shein attracts mostly young females (index of 160 for women).
- AliExpress has more male customers (index of 115 for men).

🛍️ Shopping Behavior

- TEMU customers spend $2,500 annually, above the market average of $1,800.
- Frequent shoppers with 45.8 purchases/year.
- Prefer cheaper items, average price per item $14.
- TEMU customers often shop at other low-cost retailers.
- Shein customers prefer fashion and beauty stores.

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Mirakl in 2024 Marketplace and Dropship Index analyzed 118 global retail marketplaces and dropship platforms. These retailers represent more than $6 billion sales, more than 66K third-party sellers, and nearly 200M unique products.

📈Marketplace Growth

- Marketplace merchandise sales grew by 46% on average in 2023.
- This growth rate is six times higher than the overall ecommerce growth rate.
- 70% of customers prefer to shop with specialized retailers, those in electronics and sporting goods grew by 63% and 74% respectively

💰 Commission Rates

- The average marketplace commission rate in 2023 was 14.7%, up from 14.1% in 2022.
- Highest commission in jewelry (20-25%) and apparel (15-25%).
- Consumer electronics have the lowest commissions, between 6-10%.

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That’s all. See you next week in the 🌀Maze!

Your guide through the maze

Artur Stańczuk Chief Strategy Officer at Packhelp, the leading European packaging marketplace. Previously worked ~8 yrs at Bain & Co. In the past, Digital Transformation Director at the leading Polish convenience chain Żabka and Entrepreneur that co-launched 3 startups