Temu, a budget shopping app provider under the umbrella of Shanghai-based e-commerce conglomerate PDD Holdings, has launched its operations in the Philippines as part of its expansion strategy into the Southeast Asian market. This move places Temu in direct rivalry with strong contenders such as Lazada, a unit of Alibaba Group Holding, TikTok Shop from ByteDance, and Shopee, headquartered in Singapore.

Temu's logistics partner in the Philippines is J&T Express. The logistics delivery time ranges from 5 to 10 days. According to the official webpage, if the package is not delivered within 10 days, consumers can receive 250 pesos worth of points within 48 hours.

The move serves as a clear indication of its deliberate corporate expansion throughout Asia. This follows its recent entry into the markets of Japan and South Korea, highlighting its concerted efforts to tap into the economies of less affluent nations within the region.

Established in 2022, Temu specializes in offering cost-effective products manufactured in China to international customers. By capitalizing on the robust supply chain and marketing capabilities of its parent company, the platform has been growing rapidly since its inception. In March 2023, PDD announced that Temu had reached 10 million users.

Since its launch in September 2022, Temu has expanded to 37 countries and regions, spanning across Asia, Europe, North America, South America, and Oceania.

Consistent with its practices in other countries, Temu also collaborates with third-party logistics service providers in new locations to offer local consumers "last-mile" logistics services. In terms of promotional discounts at new sites, Temu continues its strategy of providing low prices, introducing significant coupon-based discounts and free shipping services. Currently, the prices of most products on the Philippine site range from 50 to 1500 pesos (approximately 6.4 to 192 Chinese Yuan), giving Temu a competitive pricing advantage among Southeast Asian e-commerce platforms.

The burgeoning growth potential of Southeast Asia has garnered heightened interest from Chinese e-commerce service providers. This shift is a response to mainland consumers adapting their spending patterns due to China's relatively less optimistic economic forecast.

As a result, Alibaba recently infused a substantial sum of US$845 million in new funds into Lazada. Notably, Lazada initially received investment from Alibaba in 2016, which marked the commencement of their involvement with the company. Subsequent investments by Alibaba followed, leading to its ownership stake in Lazada surpassing 80 percent.

In June, Chew Shou Zi, the CEO of TikTok, announced the company's intention to invest billions of dollars into Southeast Asia over the forthcoming years.