Temu has decided to open an online marketplace in the country that connects sellers and buyers.
On the 18th, Temu noted that in addition to its existing business model that sells Chinese products directly to overseas consumers, it will launch a 'local to local' (L2L) business to distribute Korean products directly.
The program operates for companies among registered sellers in Korea that have inventory and can process and deliver orders independently. Sellers wishing to join can search for 'Temu Seller Center' on Google to visit the Korean Temu Seller Center page and register.
According to Temu, L2L is currently operating in countries including the United States, Mexico, the United Kingdom, Germany, France, Italy, the Netherlands, Spain, Belgium, Austria, Poland, the Czech Republic, Hungary, Romania, Sweden, and Japan.
A Temu official said, 'Temu plans to provide domestic sellers with the opportunity to connect directly with millions of new customers,' adding that 'with the entry of domestic sellers onto the platform, consumers will be able to easily purchase their preferred local brand products on Temu.'
Temu is a subsidiary of PDD Holdings, which was listed on the Nasdaq market in the United States in 2018. PDD Holdings owns Pinduoduo, the largest e-commerce platform in China. Since starting in the United States in 2022, it has been providing services in 90 countries worldwide, including North America, Europe, the Middle East, Africa, Asia, and Oceania.
After entering Korea in July 2023, it gained attention with 'ultra-low-priced direct-purchase products' alongside the Chinese platform AliExpress.
The monthly active user (MAU) count of Koreans on Temu was about 8,234,000 last month, according to Wise App and Retail’s data. Last year, the payment amount made by Koreans was estimated at 600.2 billion won.
As Temu decides to directly enter the market, competition within the domestic e-commerce sector is expected to intensify. The domestic e-commerce market is seeing fierce competition among Coupang and Naver, which have formed a duopoly, along with 11th Street, Gmarket, AliExpress, and Temu.