The Rise of Temu: Disrupting E-Commerce with M2C Model

by Jeremy Tang

The disruptive power of Low Fat Pigs

One of my daughters is obsessed with pigs. So my wife went and bought 43 random pig-related items. We’re talking plush toys, lamps, stickers, pens, rugs, figurines, and enough pig-themed stationery to make a herd jealous.

Here’s the kicker: the total cost, including delivery, was only $102. I couldn’t believe the insanely low prices.

The culprit? Temu, a new e-commerce force that’s shaking things up with an M2C (Manufacturer to Consumer) model. It’s a marketplace where manufacturers can sell directly to consumers, cutting out the middlemen and trimming all the fat.

The results are staggering. When Temu launched in September 2022, its Gross Merchandise Volume (GMV) was a measly $3 million. By January 2023, it had skyrocketed to $192 million. In the second half of 2023 alone, it raked in a whopping $12.26 billion. And for 2024, they’re aiming for a mind-blowing $60 billion.

This M2C model could be a massive disruption for established e-commerce players including Amazon. Think about it: where do most Amazon sellers get their products? From the same manufacturers now selling directly on Temu.

And it’s not just e-commerce. Look at Tesla – they’ve disrupted the auto industry with their direct-to-consumer model, becoming 2.5 times bigger than the incumbent king, Toyota.

AI is also a dis-intermediating force. It’s breaking down the barriers between knowledge and the public. It feels like every week we hear of stories of redundant layers of professions becoming obsolete because of it.

Every industry is in a constant threat of disruption.

Complacency? That’s your biggest enemy.

As Clayton Christensen famously said “Disruptive innovation can hurt, if you are not the one doing the disrupting”

Are you doing what everyone else is but expecting a better result?

Ready To See Your Growth Potential?

Book a FREE VIDEO CONSULTATION below to see how your SEO & Paid Media campaigns are performing against global benchmarks in your industry.

Claim your FREE SEO Audit now