Temu, a Chinese online retailer, has taken Nigeria by storm, becoming the most downloaded app on both Android and Apple app stores just weeks after launching an aggressive advertising campaign in the country. The company, a subsidiary of PDD Holdings, first gained popularity in the U.S. market after its launch in 2022. Temu is known for offering affordable consumer goods with fast delivery, often drawing comparisons to the Chinese fast fashion brand Shein.
Nigeria marks Temu’s second market in Africa, following its entry into South Africa earlier this year. The company’s marketing blitz has allowed transactions in the local currency, naira, and delivery to Nigerian addresses. Temu was the top advertiser on Meta last year, reportedly spending nearly $2 billion on ads, which has intensified competition by impacting ad costs and drawing focus away from established players like Etsy.
Nigeria’s e-commerce landscape features smaller niche retailers and larger companies like Jumia, which has recently shifted toward a leaner, profit-focused model. Analysts and consumers have expressed mixed feelings about Temu’s entry, recognizing its successful launch strategy but also fearing potential disruption to local markets.
Temu enters Nigeria’s e-commerce market
One significant advantage for Temu is its direct shipping model from manufacturers in China. This operational efficiency allows the company to offer a wide range of products at competitive prices, making it appealing in price-sensitive markets with low brand loyalty. Marie Lora-Mungai, an analyst covering African creative industries, noted that beyond its effective advertising, Temu’s potential to disrupt local e-commerce lies in its ability to provide consumers with lower-priced goods.
However, this could also threaten Nigeria’s homegrown e-commerce platforms and its developing fashion and design sectors. Some suggest Nigeria could mitigate local market anxieties by demanding concessions from global offshore online retailers like Temu, such as building factories and training workers locally. Others believe that only extreme measures, such as a ban, could preserve local capacity.
Nigerian film journalist and online publisher Oris Aigbokhaevbolo compared the situation to the dominance of platforms like Netflix and YouTube over local film distribution channels, warning against relying heavily on foreign competitors. As Temu continues to gain popularity in Nigeria with its gamified shopping experience and competitive prices, analysts warn that its presence could pose considerable challenges to the country’s e-commerce industry and its developing fashion and design sectors.
