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While on the surface, the price war appears to benefit consumers, in reality, it harms the entire socio-economic system. The most immediate impact is that merchants who insist on selling at regular prices are forced out of the market. Unless they too join the price war, leading to an ongoing decrease in prices, their profits are gradually eroded until they're left with no choice but to exit the market. As more people exit the market, the variety of products supplied will also diminish. This not only reduces the diversity of product supply but also severely undermines the entire socio-economic system. On April 21 this year, Temu entered the UK market and received a torrent of consumer complaints in a short span of time. From the poor quality of goods to subpar service and delivery delays, Temu received a dismal rating of just stars on the UK's Better Business Bureau. This not only reflected the widespread dissatisfaction with Temu but also served as compelling evidence of their inability to deliver on promises. The same tragedy played out in other countries. Chinese communities in Canada and Australia held equally negative views of Temu. Posts on Xiaohongshu (the Chinese social media platform) complaining about the company mostly revolved around Temu's focus on low-cost promotions while ignoring product quality when entering new markets, completely unveiling Temu's facade. #temu #madeinchina #chinaobserver All rights reserved.
