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TEMU Arrives in Brazil to Innovate the E-Commerce Sector: Meet the Competitor of Shopee, Shein, and Amazon That Promises to Inaugurate a New Era.
The long-awaited arrival of Temu in Brazil is about to happen. Last Wednesday (22), the Official Gazette of the Union published an authorization from the Federal Revenue Service for Temu to operate within the Remessa Conforme program, just like its direct competitors, Shein and Shopee.
Meet TEMU: Competitor of Shopee, Shein, and Amazon
The Remessa Conforme was developed to regularize the exemption from import tax for purchases up to US$ 50 on foreign websites, provided the companies register with the Federal Revenue Service. The products included in the program pay only the ICMS, a state tax of 17% on the value.
Before discussing TEMU in Brazil, it is worth mentioning that the end of the exemption promised by Remessa Conforme is under discussion in Congress. This week, the President of the Republic, Lula (PT), stated that his tendency is to veto the return of taxation if it is approved. The exemption is criticized by Brazilian entrepreneurs for allegedly giving imported goods a more advantageous condition in competition.
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Even before fully operating in Brazil, the Temu app, a competitor of Shopee, Shein, and Amazon, is among the top 100 most downloaded apps on the App Store as of Friday (24). The app ranks 98th among free apps, eight spots ahead of a potential national competitor, Havan stores (106th place).
Temu is a Chinese online store that is part of the PDD Holdings conglomerate, which also controls Pinduoduo. With a public listing on Nasdaq, PDD surpassed rival Alibaba in market value this week, becoming the most valuable Chinese company listed in New York.
Understand the Differentiator of Temu in Brazil
Temu has the slogan “Shop Like a Billionaire”. For the Shopee, Shein, and Amazon competitor, the goal is to offer a very extensive range of products, all at an accessible cost. According to Temu on its official website, customers can find a wide range of items across a variety of categories, including women’s and men’s clothing, beauty and health, home and kitchen, sports and outdoor activities, appliances, tools and home renovations, pet supplies, and toys and games, among others.
Temu arrives in Brazil with a significant innovation known as “Next-Gen Manufacturing model”. The innovation is a system where what is being sold only goes into production based on consumer demand, using the intelligence information gathered by the app.
According to the company, unlike the traditional model, where brands produce goods and then sell them to consumers, the Next-Gen Manufacturing model allows merchandise partners to adjust the development of their products and manufacturing processes according to market insights channeled through Temu in Brazil.
TEMU Arrives in Brazil: How Will the Service Work?
Regarding the arrival of Temu in Brazil, there is currently little information about the company’s strategy in the country. The entry of the Remessa Conforme is an essential step needed for the company to compete here on equal footing with its competitors.
What is known is that, to date, the countries where TEMU, a competitor of Shopee, Shein, and Amazon, has established itself have received an intensive promotional campaign. In the USA, for example, the platform ran ads during the Superbowl, the big television day in the country.
A study by Apptopia released at the end of last year shows that Americans spent about 18 minutes a day on Temu by the end of 2023, 90% more than the 10 daily minutes spent on Amazon. So far, the arrival of TEMU in Brazil has not been confirmed, as the country is not listed among the countries available on the platform.
In the request sent to the Federal Revenue Service, the company informed the Post Office and Anjus Courier as the carriers for its products. Brazil will not be the first country in South America to have TEMU, a competitor of Shopee, Shein, and Amazon. Chile, Colombia, Peru, and Uruguay are already on the list of available countries for purchase.
Não tem envio para o Brasil !