- The DHL Group has signed a Memorandum of Understanding (MoU) with Temu.
- Initial expansion will focus on Europe, before heading to the Middle East and Africa.
- Temu expects the collaboration to yield more sales moving forward.
Temu has proved a wildly popular ecommerce platform in South Africa ever since launching last year. To keep that momentum going, it has turned to one of the largest logistics companies in the world in the form of the DHL Group.
To that end, the DHL Group has signed a Memorandum of Understanding (MoU) with Temu, with the pair aiming to deepen their cooperation and to further expand their partnership across Europe, the Middle East, and Africa (EMEA).
“DHL Group will support Temu through its logistics expertise, including multimodal transportation solutions, to provide more efficient and sustainable supply chain services. With its dense network and global presence, DHL Group is the ideal partner to support Temu’s growth in both established and new markets,” the company explained in a release shared with Hypertext.
“By combining our logistics capabilities with Temu’s innovative platform, we can create more efficient, compliant and convenient solutions that benefit both consumers and local businesses in the markets we serve,” added Katja Busch, CCO and head of DHL Customer Solutions and Innovation.
Unpacking the MoU, DHL Group said it will utilise its logistics expertise to support Temu’s operations in Europe initially, including its local-to-local model, which enables local merchandise partners to sell on its platform and supports local fulfillment.
Here Temu expects up to an 80 percent increase in its total sales in Europe as a result of the local-to-local model.
“Additionally, the e-commerce platform will enable European-based sellers to reach global markets in the future. This allows, in particular, SMEs to scale and expand their businesses. DHL will also assist Temu in growing its presence in e-commerce markets, including the Europe, Middle East, and Africa (EMEA) regions,” the logistics specialists continued.
Outside of Europe, the pair will also be offering support to local small-to-medium-sized enterprises (SMEs) in established markets, as well as in growth markets, which we’re assuming South Africa is classed in, given how recently the ecommerce platform launched locally.
“Both parties are committed to fostering compliant trade and sustainable practices,” they noted.
“This letter of intent marks a significant step in our partnership with DHL Group. Its extensive network and logistics capabilities will help support our mission to increase consumer access to affordable products and help increase growth opportunities for sellers,” enthused Qin Sun, co-founder of Temu.
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