Low-cost e-commerce company Temu is expanding its delivery network in Europe’s lucrative fashion market. Temu will use Poste Italiane in Italy, Portuguese group CTT in the Iberian Peninsula, and Germany’s private postal service Mail Alliance. These business partnerships can improve logistics and delivery to customers in European countries.
According to Statista, the European apparel market’s revenue is estimated to be worth nearly $500 billion. It’s also projected to grow annually at 2.26% until 2027.
Packaging Strategies says initiatives with Poste Italiane set it apart. It includeds PIN-code-enabled lockers, pick-up and drop-off points at local stores. It is expected to expand the pace of logistics in the area, with more people preferring online shopping.
E-commerce in Italy has been booming since the COVID-19 pandemic. Statista states, “Since then, a higher number of Italian enterprises have benefitted from online channels for their business sales. In the country, approximately 38 million unique users purchase physical goods online. This number is expected to rise in the upcoming years.”
Temu’s sustainability responsibility
Determined to help save customers money, Temu has a dark cloud over its head. Many environmentalists claim the brand is a fast-fashion business, which raises ethical and sustainability concerns.
Like its name, Temu’s primary focus is price, not the environment. Temu stands for ‘Team Up, Price Down’. But with its latest partnership with European postal companies, there seems to be good progress. The strategy is to reduce carbon emissions and employ eco-friendly packaging.
But will it be enough to push it to execute these strategies? According to sustainability experts, Temu’s goal from the start was to flood the market with cheap-priced products. “With changing trends, it keeps adding tons of items, encouraging consumers to keep shopping. This approach ultimately promotes the disposable culture. No wonder Temu is making its mark as a fast fashion giant” notices Your Sustainability Guide.
Temu, however, believes it is turning the page on sustainability and has recently switched to “recyclable and biodegradable packaging.”
Postal services beef up Temu’s presence
Portuguese group CTT, in the mountainous region of the Iberian Peninsula, has a significant presence in Spain through CTT Express. It has over 500 years of experience and started operating in Spain in 2005.
CTT is investing in mechanizing warehouses and new facilities. It’s also focusing on computer systems to enhance new work processes like last-mile delivery.
Packaging Strategies is reporting that Mail Alliance will lend its network of 55,000 delivery personnel to help Temu’s operations. “[Mail Alliance] is recognized for its capacity to handle large volumes and its swift delivery times. Temu anticipates [this] will help it meet the expected service level for its customers, especially during high-demand periods.”
Temu believes the growth of its business model allows for competitive pricing.
Share this article
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
