Thriving in Ecommerce in the Era of Temu & White Label Competitors

    March 26, 2024

    A New Ecommerce Landscape

    The ecommerce world has evolved rapidly, with platforms like AliExpress and paving the way for newcomers like Temu. 

    These platforms have mastered the art of balancing lower prices with the perceived and actual risk of lower quality, leveraging bulk shipments directly from China to offer unbeatable deals. 

    As these platforms build trust with social media reviews and local payment options, consumer adoption has grown and traditional brands face a new challenge – staying relevant in the face of cheaper, direct-from-manufacturer options. 

    The rise of Temu and the efficiency of the ePacket delivery system underscore the urgency for established brands to innovate and protect their market share.


    The Crucial Fight for the Digital Shelf

    In this new digital age, where consumers are bombarded with options, how can established brands stand out and remain competitive? 

    Drawing lessons from past strategies used to combat private labels and channel shifts, we find actionable steps that you can take today to safeguard your brand presence on the digital shelf.

    1. Be the Branded Standout

    The digital marketplace is crowded, and without the physical presence of a product, brands need to find ways to differentiate themselves. 

    It’s especially challenging in categories dominated by unbranded search terms. Here’s how you can make your brand the standout choice:


    3 Cs – Complete Content Converts

    Your content should be flawless, offering clear communication of trust and functionality. 

    When there is consistency across all of your brand’s touchpoints, consumers see a unified, high-quality presence. Invest in quality content creation to avoid the common pitfalls of white label products, such as errors and awkward language.

    Highlight Your Advantages

    Make it clear why your brand is the better choice. Emphasize low return rates, easy warranty claims, and responsive customer service. These trust signals can make consumers think twice about opting for a generic alternative.


    2. Drive Retail Media Smartly

    Leveraging retail media to highlight your most relevant and differentiated products can help you cut through the noise.  As you update content to distinguish your portfolio from white label brands, focus your spend on driving to those products.

    It’s not just about visibility; it’s about capturing curious browsers’ interest among the competition to convert them into customers. 


    3. Reinforce Your Value Proposition

    In a market flooded with lower-priced alternatives, your brand’s value proposition is more critical than ever. 

    Ask yourself: what makes your brand unique? Whether it’s through product innovation, superior service, or a commitment to certain values, ensure that your differentiators are front and center. And be honest with your internal partners about the trade-offs, or more importantly, a lack of trade-offs, for white label competitors.

    This approach will help prioritize sales and innovation action while dissuading consumers from experimenting with less familiar brands. 


    Conclusion: Embracing the Digital Future

    The rise of platforms like Temu represents both a challenge and an opportunity for established brands.

    By focusing on quality, visually distinct content, strategic retail media placement, and a strong, clear value proposition, you can be well-equipped to navigate this new digital landscape successfully. 

    It’s about more than just competing on price; it’s about asserting your brand’s unique value for consumers. In doing so, you can not only survive but thrive in the era of direct-from-manufacturer shopping.


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