The Temu application has caused a "sensation" in the market with its prices but also a strong concern for the security of users' personal data. What can really be true?
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A year ago people had never heard of this app anywhere in the world, but now everyone is talking about it. The -now-known company Temu has also come to Greece in the last few months and is constantly gaining audiences thanks to its unbeatable prices and the smart strategies it uses.
What is Temu?
Temu was incorporated in July 2022, based in Boston, USA. having as its project the offering of e-commerce services as it is considered one of the largest Marketplaces. Its hallmarks are the site's extreme prices, attractive offers, and a focus on coupons and gamefication (i.e. in-app games of chance that typically offer personalized deals on products). The company itself, when asked why it has such low prices, explains that it is due to the fact that there are no intermediaries. More specifically, Temu allows suppliers from the Chinese market to promote and sell their products to consumers without the burden of middlemen.
The presence on social media platforms and the platform's incessant advertising on them were instrumental in Temu's power. Thousands of internet personalities with large followings have received either discount codes or free packages with the goal of promoting it. Especially on Instagram and TikTok you can find reviews about the products offered but also about the humiliatingly low amounts paid by users. Also, the platform has invested in advertising giving $2 billion across all social media annually. So because of this much "aggressive marketing" it follows and in general the nature of its business model it has managed to overtake similar applications such as AliExpress and the fast fashion application Shein.
Some examples of product-prices:
By extracting information from the platform itself we learn how it guarantees the high quality of products and excellent customer service. It emphasizes that consumer data is secure as are payment methods. He then states that the practices followed are sustainable but also provide guaranteed deals, which do not charge an extra amount of money for delivery to the customer's door.
All of this certainly sounds enticing to potential customers. But what is the real profit for the platform? Maybe as they say... all that glitters is not gold?
Who is behind the platform?
Carrying out a brief analysis, we learn that Temu's platform is owned by the company PDD Holdings, which also has as its main product the Chinese e-commerce company Pinduoduo. This particular one was founded in 2015 by Chinese businessman Colin Huang, with the aim of selling traditional agricultural products online, which has inexperienced prospective consumers. As a platform it made a lot of money, but not to the level of Temu.
The problems for the Pinduoduo company started in 2018, when articles accusing its products of being counterfeits, took on huge proportions. The following year, according to Reuters reports, he was included for the first time in the "list of notorious markets for counterfeit and piracy from the office of the US Trade Representative." At the time, the South China Morning Post newspaper published the following: "Pinduoduo removes suspected fake listings after its shares plunge."
Arriving in 2023 after seemingly chronic concerns about security and strange practices, Google is deleting the platform from the Play Store, as it was found to have malicious software, according to the Wall Street Journal. With the outbreak of this news, Pinduoduo, in a panic move, proceeds to lay off its engineering team, despite all of this, the twin company, which is none other than Temu, hires them.
The accusations
Temu has now also been targeted, due to its connection and past with its twin company. Many of her clients have complained about suspicious charges since the very beginning. Another fear is that low prices may exist because sellers are sending expired or even dangerous goods. The report of the Committee of the United States Representatives. provided a critical assessment of Temu, suggesting that there is an "extremely high risk of contamination from forced labor in Temu's supply chains" (The New York Times). The company also applies the 996-hour work model, that is, work from 9:00-21:00, 6 days a week.
The biggest issue facing the giant platform is the accusations of breach of personal data of millions of users. Addresses, bank account codes, biometric data and general phishing are said to have been leaked. The potential collection of such data not only violates rights but puts millions of citizens who resorted to the app for financial shopping at immediate risk.
So the main question is: Is it worth trying and buying from Temu at the risk of leaking our private identity or not?
*Cover photo: picture alliance / CHROMORANGE | CHROMORANGE
