In a digital age marked by the growing ubiquity of the internet and smartphones, South Korea’s e-commerce market has surged. Global Data forecasts that the market’s transaction value will reach $242.2 billion by 2025. Capitalizing on this, platforms like Temu have aggressively expanded their presence.
Two months ago, Temu boasted a significant milestone—its monthly active users in South Korea hit 8.29 million, reflecting a 42% month-over-month increase. This achievement stirred excitement within the cross-border e-commerce community and alarmed local competitors.
However, recent data from big data analysis firm IGAworks Mobile Index signals a shift. Since April, Temu’s installations have seen a steady decline, dropping from 2.28 million in April to 1.71 million in May—a 25% decrease.
Temu, consistently ranked first in shopping app installations in South Korea from October to April, saw its lowest installation figures in May since October last year. Meanwhile, TikTok outpaced Temu in installations previous month. Shein, another central platform, showed positive momentum, with installations rising from 170,621 in April to 187,763 in May.
Temu’s monthly active users also reflect this downward trend, falling from 8.238 million in April to 7.970 million in May, marking two consecutive months of decline.
Experts attribute Temu’s dwindling popularity to concerns over product quality. Recent inspections by South Korean customs revealed that some of Temu’s products contained excessive carcinogenic substances. Additionally, the platform has faced significant controversy regarding user data privacy breaches.
A logistics industry insider noted that while Temu’s low-priced goods initially attracted South Korean consumers, recurring quality and delivery issues have driven them back to local e-commerce platforms.
Nevertheless, some industry insiders suggest that the dip in popularity of Chinese e-commerce platforms may be temporary, given the strong appeal of their diverse and affordable product offerings to South Korean consumers.
South Korean media recently reported that the surge in packages from platforms like Temu has significantly boosted local airlines’ business. From January to May this year, South Korea’s 11 airlines transported a record 1,154,524 tons of cargo on international routes, the highest since 2009.
Despite this, the “declining popularity” serves as a wake-up call for platforms like Temu, emphasizing the need for continuous improvement in product quality. Failure to address these issues could hamper their overseas appeal and development.
