nCa Report
The world of e-commerce has transformed the way we shop, connect, and do business. Two companies that have captured global attention in this space are China’s Temu and Russia’s Wildberries. Their meteoric rise offers valuable insights not just for large corporations but also for individual entrepreneurs and small and medium enterprises (SMEs) in regions like Central Asia. By examining their strategies, similarities, and differences, we can uncover lessons that could reshape how businesses operate in emerging markets.
Temu and Wildberries succeeded by leveraging technology, understanding consumer behavior, and addressing logistical challenges in innovative ways. Both platforms recognized early on that affordability is key to attracting customers. They achieved this through direct relationships with manufacturers, cutting out intermediaries, and offering products at competitive prices. Additionally, both focused heavily on user experience—streamlining navigation, ensuring secure transactions, and providing reliable delivery services. These shared approaches helped them build trust among consumers who were either new to online shopping or skeptical about its reliability.
However, their paths diverged significantly when it came to marketing and expansion strategies. Temu adopted an aggressive international growth model, targeting Western markets with enticing discounts and social media campaigns designed to go viral. Its “gamified” shopping experience, where users earn rewards for engaging with the app, further fueled its popularity. In contrast, Wildberries concentrated on consolidating its dominance within Russia while gradually expanding into neighboring countries. It prioritized building robust logistics networks, including warehouses and last-mile delivery systems, which gave it greater control over operations and allowed it to offer faster shipping times.
Now let’s shift our focus to Central Asia—a region ripe with potential for e-commerce but facing unique challenges. Entrepreneurs and SMEs here can learn much from the successes of Temu and Wildberries. For instance, they can adopt cost-effective sourcing methods and invest in creating seamless digital experiences for their customers. However, they must also navigate hurdles such as foreign exchange convertibility issues and fluctuating currency rates. To overcome these barriers, governments and financial institutions could collaborate to establish stable mechanisms for cross-border payments. Introducing regional payment gateways that support multiple currencies would simplify transactions and reduce dependency on volatile exchange rates.
Customs regulations present another critical area for improvement. While stringent checks are necessary to prevent illegal trade, overly bureaucratic processes stifle legitimate e-commerce activities. Simplifying customs procedures for low-value shipments, implementing electronic tracking systems, and harmonizing rules across Central Asian nations could strike a balance between security and efficiency. This would encourage more businesses to participate in cross-border trade without fear of delays or excessive paperwork.
One promising solution lies in harnessing the existing infrastructure of postal services. Across Central Asia, national postal systems boast extensive reach, extending even to remote villages and towns. They already possess warehousing facilities and expertise in handling payments, making them ideal partners for e-commerce ventures. By modernizing these services—integrating them with digital platforms, improving delivery speeds, and training staff in customer service—postal operators could serve as the backbone of a thriving e-commerce ecosystem. Such collaboration would benefit not only businesses but also consumers, who would enjoy wider access to goods and services.
The stories of Temu and Wildberries demonstrate that success in e-commerce requires a mix of innovation, adaptability, and strategic planning. For Central Asia, the lessons are clear: prioritize affordability, enhance user experience, and invest in logistics. At the same time, policymakers and stakeholders must address systemic issues like currency volatility and cumbersome customs regulations. Leveraging the strengths of postal services could provide a practical and scalable foundation for growth. With the right combination of private initiative and public support, Central Asia’s entrepreneurs and SMEs can unlock the full potential of e-commerce, driving economic development and improving lives across the region. /// nCa, 27 March 2025