This app, which allows consumers to buy products at unbeatable prices, is very successful in Europe and the United States. But its model and its practices give rise to numerous criticisms.
Jewelry for 1 euro, cameras for less than 15 euros… Consumers wanting to save money in these times of inflation have surely ventured onto the Temu application, launched by the Chinese group Pinduoduo. Released in April in France, it occupied first place in downloads on the AppStore on Monday October 9. But Temu has a bad reputation: accusations of espionage, forced labor and violent ecological impact. Franceinfo presents this application which worries the authorities as much as it appeals to consumers.
1What is this app?
Temu is an e-commerce site, which offers clothing, electronics and decoration at very low prices. It belongs to the Chinese group Pinduoduo, an online platform launched in 2015, as recalled The world. Temu has existed since 2022, the year it was launched across the Atlantic and in Australia. It has only been available since April on the French market, but these few months were enough to push it to the top of the ranking of the most downloaded free applications in the country. His slogan, “shop like a billionaire” (“buy like a billionaire”), sounds like a promise to be able to spend without counting.
“There are various products such as tampons that erase thescratches on cars, hi-fi and fashion accessories, a lot of small objects sent very simply with low shipping costs”observe Ilfynn Lagarde, co-founder of Youzd.fr, an e-commerce site for second-hand household appliances, who analyzed the Chinese application when it arrived on the market.
2Why is she so successful?
Two months after its launch, Temu already had 9.5 million users in June, according to Médiamétrie (PDF link). It is based on marketing strategies “ultra-effective”, REMARK Ilfynn Lagarde. Like her, you have undoubtedly already seen advertising for this app appear in your social media feed. “When you browse the application, the strategy of fear of missing out on something is triggered, explains Ilfynn Lagarde. Temu uses psychological triggers to create desirability and urgency by telling you, for example, that a flash sale is underway, that other people are looking at the same product as you and that it soon there won’t be any left.”
In this period of inflation, the low prices charged by the platform are attractive, defying all competition. The company is even nicknamed “the price butcher”according to the American news site The China Project, due to the huge discounts offered, particularly during “Black Friday”. These very low prices are combined with online games to obtain reductions, which encourage consumption. Temu also offers “free articles to users who promote the application on their social networks. Thus encouraging their loved ones to become customers, too”notes a report from the market research company Foxintelligence, cited by the specialist magazine LSA. Like Shein, the Chinese clothing e-commerce giant, Temu relies on artificial intelligence and the study of data, as explained Shaun Rein, director of China Marketing Research Group, a market strategy firm.
“Temu is capable of having optimal logistics and using artificial intelligence to guide French consumers towards the products best suited to their needs.”
Shaun Rein, director of China Marketing Research Groupat France 2
Temu finally has a gigantic marketing budget, as evidenced by the $7 million spent on a 30-second advertising spot during the Superbowl, the biggest sporting event in the United States. A profitable strategy since downloads exploded after the broadcast, according to Sensor Tower, a data analysis firm. And for the moment, the company is only pursuing one objective, that of reaching as many people as possible before being profitable. Thus, according to the American magazine Wired, Temu would lose the equivalent of 30 dollars on each order.
3Why is it controversial?
At a time when seven out of ten French people are aware of the link between their consumption choices and the state of the planet, according to the Ecological Transition Agency (Ademe), Temu’s success shows that intentions are not always followed through. Because the application floods the Western market with products coming directly from China to limit intermediaries and lower prices, leading to shipments, by plane or boat, with heavy CO2 emissions. This method also causes delivery times to explode. And when the product arrives, you shouldn’t be too careful about its quality. “The application does not necessarily provide the cleanest products – we will clearly say counterfeiting – or having standards authorized for example in Europe”ensures BFMTV Damien Bancal, specialist in cyber-intelligence.
Another black point is the working conditions of the workers. In June, a report from the U.S. House Select Committee on the Chinese Communist Party accused Temu of circumventing sanctions under the U.S. Uyghur Forced Labor Prevention Act. “Temu does virtually nothing to keep its supply chain free of forced labor”declared Republican Senator Mike Gallagher, quoted by the Guardian.
Finally, in France, questions concern the compatibility of Temu with the requirements of the Directorate General for Competition, Consumer Affairs and Fraud Control (DGCCRF). “Given Temu’s business model, we are also monitoring it closely. It is the subject of checks as part of an ongoing investigation into fast fashion, which also affects Shein. We are also monitoring reports on the Signal Conso site, but to date, there are few”said the office of Olivia Grégoire, Minister Delegate in charge of Commerce, in Figaro.
4Can it really spy on its users?
Suspicion of espionage has become common with the development of e-commerce applications and social networks. Thus, the French government banned “recreational applications”, including TikTok, Instagram and Twitter, on the phones of state officials. Serious doubts also weigh on Temu. Last April, CNN published an investigation which revealed that Pinduoduo, the parent company of the app, had been able to interfere in Android smartphones to “access users’ contacts, calendars, notifications and photo albums without their consent”or “change system settings and access users’ social media accounts and chats”writes the American channel.
According to a survey published on September 6 by the American analysis company Grizzly Research, Temu could host spyware. According to Grizzly Research, the application “includes hidden functions that allow massive exfiltration of data without users’ knowledge”. “Great efforts were made to conceal the malicious intentions and intrusive nature of the software”adds the investigation.
Accusations which, for the moment, have not resulted in a ban on the application. It should be remembered that the collection and sale of user data is widespread. “Temu makes money by selling its user data. The user almost never reads the general conditions before agreeing to them, but Temu must be within the law”assures Monica Grosso, director of the marketing department at EM Lyon Business School.
“Like Amazon before or Alibaba, what interests Temu is to have a customer base. With their figures on the number of downloads, they want to show their potential sellers that they can allow them to reach a lot of buyers.”
Monica Grosso, professor of marketingat franceinfo
Selling data to companies “is legal”she recalls, but Temu’s economic model, currently unprofitable, forces it to sell its database more aggressively. Finally, French and European GDPR legislation, stricter than that in force in the United States, guarantees that Temu’s general conditions are compatible with local law, assures Monica Grosso. “If the control bodies have done their job and verified that Temu’s procedures are compliant in Europeshe concludes, There’s no reason for us to be spied on.”