China's cross-border e-commerce firm Temu makes low-key entry into South Korean market, opens Seoul office

With the rapid development of globalization and Internet technology, the cross-border e-commerce industry has ushered in unprecedented development opportunities. In recent years, Chinese cross-border e-commerce companies have stepped out of the country and marched into overseas markets. Among them, Temu, a subsidiary of Pinduoduo, is one of the leaders. Recently, Temu has made significant progress in the Korean market, not only setting up an office in Seoul, but also rapidly expanding its market share through a series of strategies.

According to public records, Temu, the cross-border e-commerce platform of Pinduoduo, officially registered and established a subsidiary named "WhaleCo, Korea Limited" in South Korea on February 23 this year, focusing on e-commerce and related business activities. The move marks Temu's formal entry into the Korean market and its competition with local e-commerce companies. It is worth mentioning that WhaleCo Inc. is the name of Pinduoduo's subsidiary in the United States, a move that also shows Pinduoduo's continued progress in its globalization strategy.

It is reported that the total registered capital of Temu Korea is 100 million won, which translates to about 74,000 dollars. Although the office address has been confirmed as Jongro, Seoul, the exact office location has not yet been announced to the outside world, maintaining a certain sense of mystery. This strategy may be to better adapt to the local market while avoiding unnecessary media attention.

Since entering the Korean market in July last year, Temu has rapidly launched a series of market expansion activities. With its wide range of products, favorable prices and good shopping experience, Temu has quickly won the favor of Korean consumers. According to data provided by WiseApp, a retail data collection company, Temu has 5.81 million users in South Korea as of February this year, which is the fourth largest e-commerce shopping app in South Korea, a remarkable performance.

However, just as Temu has made significant progress in the Korean market, it has also faced a number of challenges and regulations.On March 26, a number of cross-border e-commerce companies, including Temu, received a notice from the Korea Fair Trade Commission (KFTC). The notice requires these foreign e-commerce companies operating in Korea to designate agents in Korea to handle consumer damages, dispute resolution and investigations. This requirement aims to protect the rights of Korean consumers and ensure the compliance of cross-border e-commerce companies in the Korean market.

Faced with this regulation, Temu responded quickly. The company actively communicated with its local partners in Korea to find a suitable agent to ensure the smooth operation of its business in Korea. At the same time, Temu has also strengthened its understanding and research of the Korean market in order to better adapt to market demand and consumer habits.

Industry analysts believe that Temu's strategy in the Korean market is relatively mild and low-key. Compared with some cross-border e-commerce companies that have made a lot of publicity and high-profile expansion in the Korean market, Temu focuses more on steady and gradual penetration. This is one of the reasons why Temu's Korean entity was only exposed to the media more than a month after it was registered. By doing so, Temu not only avoided excessive competition and market risk, but was also able to accumulate user reputation and market share while maintaining a low profile.

Temu's performance in the Korean market is worth looking forward to. As a cross-border e-commerce company with global vision and strength, Temu will continue to plough into the Korean market and bring more high-quality goods and services to consumers. At the same time, we also expect Temu to continue to innovate and improve its business model in the future development, injecting new vitality into the development of cross-border e-commerce industry.