Temu is a Chinese e-commerce marketplace that has taken the world by storm.
BIG ACHIEVEMENT: Even in the face of intense competition – like Shein, Amazon, AliExpress, Walmart.com – Temu has become a top player.
And they went from ‘zero to hero’ in less than two years!!!
How did they achieve this?
It wasn’t cheap prices. Shein and AliExpress already were offering rock bottom pricing.
Temu didn’t fool itself into thinking that they could win using social media.
Instead they went for a strategy with a proven track record – that has a history of success.
They invested in paid advertising.
CONSIDER THIS: In less than 2 years, Temu has gone “from completely unknown to a household name,” according to research from YouGov. Its data shows that nearly nine in 10 Americans know about Temu.
It wasn’t only Temu’s much talked about $7 million adverts during the Superbowl.
STRATEGY: Temu has been spending big in traditional media channels. That means advertising.
RATIONAL: Why? Because traditional advertising is the only way a company can stand out in a very crowded market.
While most companies look at the cost of advertising as sort of a ‘penalty’ – smart companies like Temu see it as an advantage.
It’s a competitive advantage because most of your competitors will never spend money on advertising.
(They’d rather chase ‘likes’ on social media. Or socialize at a trade fair.)
KEY BENEFIT: So when you invest in advertising, you basically ‘own the stage’.
You stand out. You’re heard. Your brand is seen … (without relying on the whims of an algorithm).
Like Temu, you’re paying for exclusivity. For high visibility.
TAKEAWAY: Temu didn’t buy those multi million dollar SuperBowl ads because they are big company. They are a big company because they have invested in taking the right actions to grow the business.
While other companies are looking to ‘save their way to success’ – Temu is driving its success by doing the kind of marketing actions that have proven to work.
Just something to consider when looking at how to grow your business.
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