Expansion Plans in Europe

Chinese e-commerce giant Temu is ramping up its efforts to gain a foothold in the German and broader European fast-moving consumer goods (FMCG) sector. Backed by its parent company PDD Holdings, Temu has launched a dedicated team focused on sourcing local suppliers of groceries, cosmetics, and gardening products.

According to industry reports from Lebensmittel Zeitung, Temu’s outreach to potential partners has been described as “aggressive,” with the company actively courting manufacturers across multiple consumer categories.

Concerns from Local Producers

While Temu’s entry into the market promises lower prices for consumers, it has also sparked unease among European producers. Marlena Hien, founder of the health brand Bears with Benefits, has publicly voiced her disapproval of Temu’s tactics. On social media, she warned against the flood of cheap goods from Asian platforms, accusing them of sidestepping European regulations and threatening innovation by rapidly copying existing products.

Although Temu has not disclosed detailed terms of cooperation, industry insiders believe that the company’s conditions are similar to those offered by Amazon, including fees and logistics handling.

Adapting to Local Tastes and Laws

Despite logistical hurdles and tightening customs regulations across the EU, Temu has already seen success stories. For instance, German sausage producer Wurstbaron has reportedly experienced strong sales via the platform.

Temu’s new European strategy involves reducing reliance on shipments from China. Instead, the company is actively engaging with local suppliers to speed up delivery times and offer goods that better match the preferences of European consumers. This shift is also seen as a response to the EU’s intention to end the tax exemption for low-value imports under €150—a regulation from which Temu and similar platforms have long benefited.

The Tagesschau reported that nearly 4.6 billion low-value parcels entered the EU in the previous year, with around 90% originating from China. Since 2023, the volume of such small shipments has more than doubled.

A Platform Built on Ultra-Low Prices

Temu, which launched globally in 2022, has quickly gained massive popularity due to its extremely low pricing. Shoppers can find Bluetooth earbuds for as little as €5, garlic presses for €1, or ten-packs of T-shirts for under €20. This wide variety of ultra-affordable items, ranging from clothing and electronics to homeware and cosmetics, has drawn millions of budget-conscious users.

However, the platform has faced ongoing criticism. Customers frequently report receiving products that don’t match descriptions or photos. Quality issues with materials and craftsmanship are common complaints. Additionally, Temu’s production practices and lack of data transparency have raised concerns among consumer advocates.

Pushing Into the Food Sector

In May 2023, Temu reportedly launched a new “food team” to explore opportunities in the European grocery sector. The team has already reached out to regional food manufacturers and increased its marketing efforts to support this new business direction.

In a statement to Lebensmittel Zeitung, Temu described this group as focused on daily consumer goods, with the goal of “expanding local offerings and improving service for European customers.” For Temu, “local” refers to sourcing from within Europe, rather than importing from Asia.

By localizing its supply chain and aligning with regional preferences, Temu aims to strengthen its presence in Europe and potentially disrupt the dominance of supermarket giants like Aldi, Lidl, and Rewe.

Cybersecurity Warnings Amid Shopping Frenzy

As Temu intensifies its marketing around major shopping events such as Amazon Prime Day, cybersecurity experts caution users to remain vigilant. Fake websites mimicking legitimate retailers have been reported, with scammers targeting shoppers eager for deals by stealing personal and payment information.

A Serious Player in a Crowded Market

Despite being a newcomer, Temu’s rapid growth signals its intent to become a major player in Europe’s retail landscape. With a blend of ultra-competitive pricing, aggressive market strategies, and a growing local network, the Chinese platform could significantly reshape consumer behavior—and challenge long-established retail chains in the process.