Thai consumers, entrepreneurs up in arms against e-commerce platform Temu
A majority of Thai consumers and entrepreneurs are aligning with the global movement to ban Chinese e-commerce platform Temu, amid fears that an influx of cheap products could devastate the country's supply chain and competitiveness.
The platform, which has disrupted the e-commerce landscape globally, offering ultra-low prices on a vast range of products, is facing stiff opposition from both businesses and consumers.
Temu, known for its "Shop Like a Billionaire" tagline, has rapidly expanded its reach across the globe, capturing a significant market share in the US and Europe. Its business model, which eliminates intermediaries and leverages group buying, has proven highly effective. However, its arrival in Thailand has sparked fears of unfair competition, supply chain disruptions, and job losses.
Thailand became the third country in the region to host Temu, with the platform launching a Thai language app in late July last year. The app offers baht pricing, free shipping, and a refund system, with products typically taking no more than five days to ship from Guangzhou to Bangkok.
However, Temu's entry into the Thai market has not been smooth sailing.
Local businesses are raising alarm bells over the potential impact on their operations. With Chinese manufacturers offering products at significantly lower prices, Thai producers may struggle to compete, leading to factory closures and unemployment. Additionally, concerns have been raised about the quality and safety of products sold on the platform, as they may not adhere to Thai standards.
This situation has sparked a growing opposition movement on social media, with hashtags like #แบนTemu (Ban Temu) gaining traction. Comments on Temu Thailand's page express concerns about supporting an app that doesn't pay local taxes and potentially takes jobs away from Thai workers.
Critics are calling for Temu to meet Thai standards, such as TIS certification, and to pay full taxes before being allowed to operate in the country.
In response to these concerns, the Thai government has tasked relevant agencies, including the Revenue Department, Ministry of Commerce, and the Ministry of Digital Economy and Society, with developing strategies to address Temu's entry into Thailand.
The Revenue Department has said that Temu currently does not fall under Thailand's VAT registration law, making it impossible to compel the platform to register for VAT.
As Temu faces robust resistance from Thai entrepreneurs and social media users, coupled with close scrutiny from government agencies, its entry into the Thai market may prove far more challenging than its global expansion efforts to date.
