Schlagwort-Archive: Influencer Marketing

The Catch of Temu in Europe – July 2024

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The Catch of Temu in Europe

Temu, the Chinese e-commerce platform, offers products at remarkably low prices, which raises concerns about its business practices. One significant issue is the undervaluation of parcels entering the EU. Estimates suggest that around 65% of parcels are deliberately undervalued in customs declarations to avoid tariffs, which undermines local businesses and creates an uneven playing field [1]. Additionally, Temu employs a direct-to-consumer model, sourcing products directly from manufacturers in China, allowing them to benefit from bulk discounts and reduced shipping costs [2].

Benefits for the Chinese State

The low pricing strategy of Temu serves multiple purposes for the Chinese state. Firstly, it helps expand China’s influence in global e-commerce by increasing the market share of Chinese companies abroad. This can lead to greater economic ties and dependency on Chinese goods. Secondly, by facilitating the export of low-cost products, Temu contributes to the Chinese economy by boosting manufacturing and logistics sectors. Lastly, the data collected from users can be leveraged for insights into consumer behavior, which may benefit Chinese businesses and potentially the state itself in terms of economic planning and strategy [1].

Overall, while Temu’s low prices attract consumers, they also raise significant regulatory and ethical concerns in Europe, prompting scrutiny from authorities regarding compliance with local laws and standards.

Deeper Analysis of Future Benefits for the Chinese State

Temu’s aggressive pricing strategy in Europe not only serves immediate commercial interests but also aligns with broader strategic goals of the Chinese state. Here are several potential future benefits for China:

  1. Economic Expansion and Market Penetration:
    By establishing a strong foothold in European markets through low prices, Temu can facilitate the expansion of Chinese goods into new territories. This not only increases sales volume but also enhances brand recognition and loyalty among European consumers. As more consumers become accustomed to purchasing Chinese products, it could lead to a long-term shift in buying habits, favoring Chinese brands over local alternatives.
  2. Strengthening Supply Chains:
    Temu’s model emphasizes direct sourcing from manufacturers, which can help streamline supply chains. This efficiency can be replicated across various sectors, allowing China to become a dominant player in global supply chains. By controlling more aspects of production and distribution, China can mitigate risks associated with international trade tensions and disruptions, ensuring a more resilient economic structure.
  3. Data Collection and Consumer Insights:
    The platform’s operations will generate vast amounts of consumer data, which can be analyzed to gain insights into European consumer behavior. This data can inform not only marketing strategies but also product development, allowing Chinese manufacturers to tailor their offerings to meet the specific preferences of European consumers. Such insights can enhance competitiveness and drive innovation within Chinese industries.
  4. Geopolitical Influence:
    By increasing its economic presence in Europe, China can leverage its commercial relationships to enhance its geopolitical influence. Economic ties often translate into political goodwill, which can be beneficial in negotiations on various fronts, including trade agreements and international policies. This strategy aligns with China’s broader goal of expanding its influence globally, as outlined in its recent political resolutions emphasizing the importance of state power and common prosperity.
  5. Promotion of Technological Advancements:
    As Temu grows, it may invest in technology to improve logistics, customer service, and user experience. This could lead to advancements in e-commerce technologies that can be exported back to China, enhancing domestic capabilities. Moreover, the emphasis on technology aligns with China’s ambitions to become a leader in areas such as artificial intelligence and data analytics, as highlighted in its national strategies.
  6. Cultural Exchange and Soft Power:
    By making Chinese products more accessible and appealing to European consumers, Temu can facilitate a form of cultural exchange. As consumers engage with Chinese brands, they may also become more receptive to Chinese culture and values, enhancing China’s soft power. This cultural integration can help counter negative perceptions and foster a more favorable view of China in the long term.

In conclusion, Temu’s low pricing strategy is not merely a tactic for market entry; it is a multifaceted approach that can yield significant long-term benefits for the Chinese state. By enhancing economic ties, gathering valuable consumer data, and promoting technological advancements, China positions itself to strengthen its global influence and economic resilience in an increasingly competitive landscape.

Approaches for Navigating Influencer Marketing

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For the first few years of its life, Instagram was an ad-free community. By 2017, however, it will produce nearly $3 billion in mobile ad revenue, and 34 percent of American agency professionals cite it as the social network of choice for client campaigns.

The opening of the advertising floodgates definitely has Instagram users on edge. They fear that the feed they tap into for inspiration and escape will be tainted by the presence of advertisers, who are simply in the business of paying for eyeballs. But for savvy marketers and advertisers, there’s a key tactic to turn to when approaching the platform: influencer activation.

Influencers may have fewer followers than mainstream celebrities, but they powerfully impact their fans, who take their advice seriously. Companies such as Burberry, American Apparel, Land Rover, TOMS and Johnnie Walker partner with Instagram celebrities to reach consumers and create positive buzz around their brands.

But massive multinational companies aren’t the only ones that can leverage the power of this growing trend. Brands of all sizes are already enjoying success from influencer-driven Instagram campaigns. It’s a different conversation than the one centered on traditional paid media, and it’s growing in importance as brands try to forge meaningful connections with their audiences.

Here are a few tips and trends marketers should consider when looking to add an influencer strategy to their plans:

1. Marketers are diving into their own data

Tech tools are enabling companies to analyze opportunities and target highly segmented user groups with relevant content. If Neiman Marcus wants to launch a last-call promotion in some of its markets, it can approach fashion personalities who have influence in those areas, narrowing the options based on their number of followers and potential reach. Neiman Marcus can sign a deal with an influencer—paying for the exposure he or she can deliver—and drive sales through his or her followers.

Marketers should be tracking customers’ data so they can identify the influencers among them. Pay attention to social media trends, and use metrics to effectively market through them. This tracking will require layering on a few data points, from first-party data to social monitoring tools. Brands can see real-time numbers on their followers, how followers interact with their accounts, and how active followers are with other accounts. They may be surprised by the amount of exposure a core base of fans can bring to a brand via social channels.

2. Scalable technology is breaking down barriers to activation

Until recently, only top influencers and brands had been involved in this space. However, new platforms not only take the legwork out of influencer activation, but they also let marketers activate more influencers for less money. It’s the rise of the mid-tier influencer—and “there’s an app for that.”

Apps like Popular Pays allow brands to not only identify a pool of potential influencers, but also submit creative briefs with pricing and restrictions to that pool. Influencers can choose whether to opt in. This is an excellent way for a brand to generate social-ready creative that aligns with its brand in an efficient and cost-effective manner. Platforms like these are eliminating the barriers to entry and decentralizing the market—much like what Uber and Airbnb have done for transportation and lodging.

3. A shift from aspirational to transactional posts is underway

Consumers often follow people for their inspirational or aspirational content—think Kirsten Alana’s luxury travel-themed Instagram. But 2016 will be the year of transactional posts, with influencers guiding followers toward specific purchases or providing product information.

Marketers must identify content creators who are popular among their target audience members and strategize which products or services they can promote through them. But don’t lose sight of why customers followed these people. Make sure promotions advance their goals and meet a specific need.

4. Influencer content will be run directly

Many companies are chomping on the influencer activation bit, but others—including brands like McDonald’s and Ben & Jerry’s— are starting to integrate this technique into their more traditional media buys. Despite consumer pushback, there’s something to be said for running ads directly through the platform.

Influencers can gain brands valuable word-of-mouth marketing, but when it comes to targeting, reach and frequency, buying platform direct is the better option. Going site direct guarantees marketers get their brands’ content in front of someone in their market—something that’s not possible with influencers because brands simply don’t have access to the full scope of their followers’ data. Activate the influencer, take the content and run it directly to amplify it beyond his or her individual stream.

It makes sense why marketers are waking up to the power of these savvy personalities on Instagram and other social channels. Word of mouth has always been the most powerful form of marketing, and we’re seeing that on a much larger scale with the ease of content creation. Essentially, anyone with access to a smartphone has the ability to become his or her own publishing company. As marketers continue to refine their messages for a specific audience, they need to work with influencers who can educate their followers about their brand and help them sell to the right people.

Aubry Parks-Fried is a senior manager of digital innovations, social, and native at Centro. Centro develops digital advertising and media management software to help advertisers streamline and scale digital campaigns.

http://www.adweek.com/socialtimes/4-approaches-for-navigating-influencer-marketing-in-2016/636380