Exclusive: Temu Launches OBM Entry Channel Targeting Domestic Apparel Brands

[Original Content Translated] May 6th, Ebrun News: Recently, according to feedback from merchants, Temu, Pinduoduo's cross-border e-commerce platform, officially launched the OBM channel. As a new supply model for merchants, the OBM channel is targeted at domestic single store brand merchants with annual sales of over 1 million RMB. It has currently opened for investment in three major categories: men's clothing, sports and outdoor men's clothing, and maternity wear. It is reported that for top brand merchants who meet the store threshold, Temu will also provide benefits such as exemption from review, direct brand price comparison without price review, and exclusive traffic bonuses.

Specifically, compared to the regular full-service model, the newly launched OBM project has certain entry requirements. In addition to the single store sales requirement, it also requires the establishment of a new store by a new entity, and admission to the whitelist by buyer application. In addition, merchants must publish more than 50 product SKUs, and old store entities and their sub-stores are not eligible for OBM policy benefits.

At the same time, although the specific processes of selection, review, and stocking are similar to "full-service" in a mode of "selling domestically stocked goods globally", the OBM project is more flexible in terms of review and price, and enjoys various policy benefits.

Clothing products do not need to change size or tags. For back-end product selection, European and American sizes are used, and physical packaging bags are affixed with conversion codes and English washing tags. During the sample review process, the review is carried out directly according to European and American sizes. The back-end connects to the ERP port for more convenient inventory management.

For top brands, they will also enjoy the benefits of the "Brand Direct" section, receive targeted support for global advertising, as well as "one-on-one VIP guidance" from a gold medal operations team and industry director. Of note is that Temu has opened a green channel for brand pricing for top brand merchants, enabling direct brand price comparison without a price review, creating a completely new pricing mechanism.

Currently, the primary categories for investment in the OBM channel include tops, bottoms, suits, workwear, and maternity wear.

As of now, Temu has established 55 overseas markets worldwide, covering multiple countries and regions in Asia, Europe, North America, Latin America, Africa, and Oceania. According to the latest LatePost report, Temu has set a target transaction volume of $60 billion this year, which is 3.33 times its total sales in 2023. The launch of the OBM model may further help the platform cultivate brand awareness and promote diversified and rapid expansion of merchant product offerings.