The top downloaded app in Nigeria’s Google Play Store and Apple software Store right now is Temu, a Chinese e-commerce firm.
With more than 500 million downloads on the Android store, the app has become the most popular just a few days after entering the Nigerian market. OPay is currently the second most popular app in Nigeria, followed by Crypto Mayors and WhatsApp, according to Similar Web.
Techpression earlier reported that Temu, the Chinese e-commerce giant, officially launched its operations in Nigeria on Wednesday, November 27, 2024, aiming to disrupt the local market with its direct-from-manufacturer model.
Read also: Temu debuts in Nigeria, challenging Jumia, Konga with aggressive lower pricing
Temu’s aggressive marketing strategy contributed to its popularity
Temu continues to hold the top spot in the Apple App Store, followed by the social networking app Bammby and OPay in third. Given how many Nigerians have been exposed to advertisements from the Chinese eCommerce platform, Temu’s quick ascent in popularity at these stores is not surprising.
According to reports, the business spent $1.3 billion on Meta advertisements. From January to November 2023, their ad spend increased 1,000 percent year over year. Social media accounted for 76 percent of Temu’s advertising expenditures during this time, with the remaining 13 percent going towards other types of advertising.
Additionally, the business has received multiple Super Bowl commercial slots, each costing $7 million for a 30-second program. In the process, it distributed $15 million worth of vouchers for the second consecutive year.
Temu’s low-cost products also contribute to its competitive advantage
PDD Holdings, the parent firm of the massive Chinese eCommerce platform Pinduoduo, is the owner of Temu, which was introduced in 2022. Colin Huang, a former employee of Google, started PDD Holdings, which gained notoriety for providing inexpensive goods that were supplied straight from vendors.
Temu’s low prices gave the e-commerce company a competitive advantage in most markets, particularly in Nigeria, where people’s purchasing power has been diminished by inflation and a generally deteriorating economy.
It is anticipated that Nigeria’s eCommerce sector, which was valued at $12 billion in 2019, will grow to $75 billion by 2025. Furthermore, by improving the security and accessibility of online transactions, digital payment systems—which have become more widely used—are supporting this expansion.
Read also: Jumia exits South Africa, Tunisia to concentrate on Nigeria, other African nations
Jumia to face fierce competition from Temu
Temu’s rapid expansion into 80 markets has been made possible by its aggressive pricing.
Players like Jumia, which is already reducing its marketing expenditures to boost profit margin, would face stiff competition as a result of its entry into the Nigerian market.
Although a Temu triumph in Nigeria would appear certain, there have been several concerns raised about the quality of its products rumoured to be mostly inferior.