Someone ask me this question “Will Temu ‘milk’ Nigeria dry the way it’s allegedly done in South Africa?”—i.e., extract maximum profits or resources while leaving long-term detriments.
Let’s break this down with a clear, evidence-based view of what’s happening in Nigeria compared to what might be perceived in South Africa:
What Temu has done in Nigeria so far
1. Aggressive market entry and pricing
- Launched in Nigeria in November 2024, Temu hit the market with ultra-low prices, flashy promos, and aggressive advertising—including a reported $1.3 billion ad spend on Meta platform.
- Its model—selling direct from manufacturers and passing the savings to consumers—offers wholesale-like prices, often starting under $1.
2. Rapid adoption and market penetration
- Temu quickly became the most downloaded app in Nigeria across both Google Play and Apple App Store by late 2024.
- Reports suggest it now accounts for roughly 45% of daily e-commerce orders, outpacing local players like Jumia (21%) and Konga (16.5%).
3. Initial appeal + rising skepticism
- Many Nigerians appreciate Temu for its free shipping, prompt refunds, and attractive pricing.
- But there are growing complaints: deceptive “free gift” promotions, mismatched product expectations, poor quality, and frustrating return challenges (like being asked to ship items to China at personal expense).
4. Structural and economic challenges
- Temu’s strengths—low prices and flashy marketing—come at the cost of limited local infrastructure. Nigeria’s inefficient customs systems, high logistics costs, and cybercrime threats could soon erode its reliability.
- Economically, foreign platforms like Temu don’t invest locally, potentially excluding Nigeria from job creation, infrastructure growth, and tax revenues.
5. Local competitors aren’t panicking—yet
- Jumia, Jiji, and similar platforms appear confident. Jumia is cutting costs, refocusing core operations, and targeting untapped cities and rural areas.
- Analysts note there’s ample room for growth for both foreign entrants and domestic platforms.
South Africa vs Nigeria: Is Temu milking Nigeria the same?
In South Africa, Temu entered earlier (January 2024) and likely faced similar initial hype—but concerns in EU/US markets (e.g., data privacy, forced labor) may have shaped narratives differently.
In Nigeria, though Temu’s launch was aggressive, it hasn’t yet “milked the market dry.” The platform is still gaining traction, not extracting maximum value and exiting. While Nigeria shows vulnerabilities—import inefficiencies, trust issues, and economic leakage—Temu currently seems focused on growth, testing the waters, and building presence.
Bottom line
- Yes, Temu is leveraging cheap pricing, marketing blitzes, and global supply chains to capture Nigeria’s e-commerce market aggressively.
- But “milking dry” suggests exploitation without sustainability. For now, Temu is still relatively new in Nigeria, and despite growing criticisms, hasn’t plateaued or drained the market yet.
- The big risk: Without stronger local regulations, Temu may eventually overshadow local players and extract value primarily for its global parent company—resulting in long-term harm to Nigerian commerce, employment, and tax revenue.