I've chosen TEMU, an online marketplace that offers a wide range of goods at affordable costs, including furniture, electronics, clothing, and more. The marketing approach used by this brand caught my attention. I kept seeing advertisements for this app that promised to give me free merchandise if I recommended six people to it. I was shocked to find that it worked, but it was too good to be true. When TEMU was originally announced in 2022, sales exploded. It was difficult for many individuals to accept that a business could distribute goods for free. Many people, like myself, claimed it was a scam, while others believed it to be authentic.
TEMU's value proposition is to provide a large range of affordable products to consumers on a tight budget. They do this by offering up to 90% less than other retailers. TEMU also provides free shipping and a large selection of goods, such as electronics and imitations of high-end brands.
Even though TEMU was huge two years ago, they have been receiving a lot of negative feedback lately because they have increased the pricing of their products. Causing people to become upset because, for instance, they misrepresent their prices by claiming to be 90% off. Also, some individuals believe their products are super cheap and not worth spending money on. Additionally, some claim to have discovered bugs within their order, one of which was a scorpion. Other customers have stated that they have not experienced any issues with TEMU and would keep doing business with them.
I believe TEMU is marketing its brand by utilizing a remarkable quality. Especially since they run large promotions that attract a lot of attention. As opposed to Amazon, Ebay, etc. Among their specials are buy one, get six free, 90% discount products, and free items if you refer a friend. TEMU'S promotions are the only ones available in the internet marketplace. With the help of alliances and influencers, TEMU also employs consumer-centered marketing to take over the world. Furthermore, TEMU promotes their business throughout a variety of channels, including social media. They even spent a huge sum of money on an advertisement during the Super Bowl. TEMU has over 2.4 million Tik Tok followers, 4.9 million Facebook followers, and 5.7 million Instagram followers. All of this advertising contributed to TEMU's quick expansion and rise to prominence as a leading online marketplace. All because of their excellent marketing and advertising abilities, which enabled them to interact with consumers. Additionally, they will increase their sales and provide their clients with even more promotions. All of this was made possible by TEMU's efforts to increase brand recognition and expand their business across numerous channels.
However, according to court filings, TEMU's holding company Whaleco Inc. is currently being sued in a class action lawsuit alleging that it sent text messages to phone numbers that are on the national do-not-call registry in the United States. TEMU has responded claiming "they take consumer protection seriously" and that "[they] believe the lawsuit is without merit and intend to defend [their] interests vigorously." This is the third class action case that TEMU has been sued in. Their failure to secure consumers' financial and personal information was the subject of the first lawsuit, which was brought in September 2023. Additionally, TEMU was accused in a November lawsuit of purposefully installing harmful malware and spyware on users' devices and of misleading them about the extent and reach of its data collecting. Both cases are still pending. TEMU stated that it strongly disagreed with the accusations made in the complaint filed in November. In one of the comments I included as an example, "this is why I love TEMU take my info I'm broke," they essentially say that even though TEMU appears to be stealing their information, they don't care because their products are so affordable and low-cost! That's why I chose to discuss their class lawsuits.
In general, TEMU tries to maintain a professional image for their business and responds to its customers. For example, several consumers say that TEMU is not helping them and that their products are not being received. I was able to access an example of TEMU's professional handling of a disgruntled customer in a recent comment on their Facebook page.
Even though TEMU addresses dissatisfied consumers, they have yet to address dissatisfied customers regarding their pricing increases. They have fair reason to raise prices, in my opinion, since the economy and inflation continue to grow. However, they make tons of money due to the daily purchases made by customers, which may be one of the reasons they don't care to address unhappy consumers. Overall, I believe that in order to keep their customers loyal, TEMU should address those who are dissatisfied about their price increase.
If I were in charge of TEMU's brand, I would use social media to interact with consumers, communicate with them, and handle crises—particularly when they are angry about price increases. Additionally, I would publish more educational content, promoting bargains, discounts, and other opportunities for clients to save money. Also, simply providing clients with reassurance and being transparent about the reasons for cost rises. Overall, this assignment taught me a lot, but primarily how crucial it is to be open and honest with clients. Additionally, even if a website is a large platform with a large number of users, it is crucial to utilize caution when shopping and sharing personal information online.
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