I mean, 1 and 5 are basically fancy ways of saying “we can’t stop slavery so why bother trying” which, erm, isn’t exactly great…
Slavery and wage slavery is happening across the globe, but companies with thin margins don’t resort to it any more than companies with huge margins (e.g. Nike). If anything, monopolistic corporations have much more power to use and enforce slave labor than the small and medium-sized factories selling at razor thin margins on Temu.
That’s most likely not the case. Larger corporations require more workforce stability and require better trained labour to maintain quality control. These needs are better fulfilled by factories who actually hire their labourers instead of hiring temps and auxiliary workers who make considerably less.
Factories that are supplying corporations like temu can only maintain a profit margin if they rely on the cheaper auxiliary labour. Often times hiring and firing them for specific manufacturing quotas. This is one of the reasons temu doesn’t have any consistency in quality.
Things sold in the US are way overpriced. Temu is actually pretty normally priced if you consider the average cost of living in the countries it ships to.
If anything they are extremely underpriced, especially when you equate the cost of shipping. The cost of a lot of items on temu are significantly lower than the production cost. As you said it’s rare to have a markup that exceeds 50% and a lot of stuff on temu is significantly cheaper than that.
I believe temu operates as a way to minimize the excess of surplus production. Basically in economics it’s always hard to balance the size of your labour force to meet the exact level of consumer demand.
Demand could be growing, so we built a new factory. Great, we are now employing more workers and have the ability to supply the increased demand. And then something like COVID happens, exports stop, demand halts, and now you have a factory with no work.
In the west, it’s tough shit, pack it up, go home. However, in China local governments can supply local businesses with loans, hoping that demand returns and they can eventually turn a profit. So they pay the factories to produce anyways, well what do they produce if there is no actual demand for export. Well anything, it doesn’t matter, it’s just about maintaining productivity levels. Just throw the shit in the warehouse and we’ll figure out what to do with it later…enter temu.
If you buy it from somewhere else, it’s still coming from a factory in China. May as well cut out the middleman.
But you aren’t buying from the factory, you’re buying from temu, the middle man.
Temu, but economically their prices make sense.
Only if you equate the use of cheap auxiliary labour, the sky rocketing debt of local Chinese governments, and the subsidization of global shipping offered by the Chinese fed.
The problem with this version of robbing Peter to pay Paul is that there isn’t actually any profit imported into the country. The loans and subsidies offered by their government were implemented to intice an actual return, where the Fed supports the local government, who support the company, who use the profit to support the workers. When there is no profit, the system is just aquiring debt.
Finally, many of the items on Temu are factory rejects that would have gone to the landfill otherwise.
Are they really? You got a source? This is pretty cool if true.
A relative was talking about ordering stuff from Temu. My response was that the products sold through them (they’re just a marketplace) are so cheap that there’s got to be slavery involved.
From what I hear, it’s also Chinese manufacturers trying to “break in” to the western market by initially operating at a loss. But I doubt how effective of a business strategy that would be, given that there is basically zero brand loyalty on marketplaces like temu. Am I getting my USB dongles from CKXLKY or TOPK? Fuck if I care! Idk tho, maybe the experience is different for people who buy stuff other than cheap electronics.
But yeah, there is 100% slavery involved. It’s like the cacao/coffee/chocolate industries, down to the “don’t blame us, we’re just buying these goods at market prices, like everyone else” excuse. Brother, you are the one setting the market price.
Ironically I have had good enough experiences with one or two Chinese brands to probably look at their stuff first whenever I ultimately replace/upgrade what I’ve got from them, but they certainly aren’t the “spam random letters to game Amazon’s systems” sort of brands and are really only slightly cheaper than the equivalents from elsewhere.
My country made it illegal to sell at a loss (for that exact reason) and IIRC wish and/or temu got in some kind of legal trouble for it. So did IKEA when they tried to use their restaurant as a loss leader - illegal here!
Then there’s the matter of shipping subsidies from the PRC, ain’t no way cross-continent shipping is 0.02 € on a 5 € item for which the last mile is handled by the national postal service which I know for a fact charges anyone more than one euro for delivering a damn envelope.
Those reasons sound retarded. Having a loss leader product or line just means you are recouping it elsewhere. It’s a draw-in, like $1.25 hotdogs at Costco. It’s different than if your whole business operates at a loss for a certain time in order to squeeze out competition. The only way this would make even marginally sense is if say both IKEA and JYSK had a cafeteria and IKEA decided to sell food at a loss while JYSK would not be able to afford in that segment.
From what I know, it’s not actually China subsidizing shipping, but the individual target countries instead, mostly on taxpayer money. This wouldn’t be bad in practice, except that goods not originating from China do not have subsidized shipping, thus the unfair advantage.
Guys. You are missing the obvious answer here. More than half of the world’s industrial robots are installed in China. Furthermore, they have been developing their internal supply chain for decades on end. Their economies of scale are very strong.
I swear, the orientalism is very strong on this post. It cannot be that a country is yielding the fruits of decades of hard work building up their industry. It has to be slave labor …
It’s not like this is coming out of nowhere, there’s some pretty compelling reasons to be concerned about forced labor in the Temu supply chain.
Humans are cheaper to replace than machines
G203 is my budget go to, prob still uses slave labour but they’re Swiss so you’ll never know
