February 26, 2023
The Boston Globe recently published an article featuring Greg Stoller, Senior Lecturer of Strategy and Innovation, discussing China’s online store Temu, which sells a selection of consumer goods such as clothing, electronic gadgets, and tools for exceptionally low prices.
The company recently opened an office in Boston’s Back Bay, leaving many wondering if the company will continue to expand. Boston was chosen as Temu’s first U.S. location because of its high-tech talent and prime location. As a result of the company opening in Boston, concerns have also been raised about how it will be able to profit from selling products at such low prices.
Stoller emphasizes this point by stating that, “It isn’t a long-term play…I think they are dipping their toe into the water.”
With Temu’s continued growth, they may introduce more expensive products to their site and compete with Amazon. Despite the slower delivery speed, Temu offers free shipping and connects manufacturers directly with sellers.
