Temu paradokset: Billige produkter, dyre konsekvenser?

Abstract

This thesis focuses on the growing tension between low-cost digital consumption and the societal demand for ethical, transparent, and sustainable business practices in the global retail industry. A striking example is the Chinese e-commerce platform Temu, which has experienced rapid global growth and quickly gained popularity in Denmark due to its wide product range and extremely low prices. The thesis aims to assess how Temu’s market entry in Denmark affects consumer behavior, the competitive landscape, and the perception of legitimacy. This study is grounded in a social constructivist perspective, where the examination of Temu’s market entry is shaped by the understanding that concepts such as legitimacy, ethical consumption, and competitive strategy are socially constructed through ongoing interactions, norms, and institutional expectations. The empirical foundation of this thesis is based on a qualitative research design, consisting of 11 semi-structured interviews with a variety of key stakeholders in the retail industry. The methodological approach combines both inductive and deductive elements: theoretical frameworks guided the development of the research questions and interview guide while the analysis sought to identify patterns emerging from the data. The study concludes that Temu’s rapid success in the Danish market is the result of both effective marketing to support its digital platform and the company’s ability to leverage competitive advantages by exploiting regulatory loopholes and asymmetrical market conditions. This creates strategic and institutional pressure on established Danish retailers to reassess their business models and value propositions. Rather than building legitimacy through norms such as transparency, responsibility, or local engagement, Temu relies on a strategy centered on extreme affordability. This resonates with price-sensitive consumers, even when it conflicts with their ethical expectations, often resulting in cognitive dissonance. In response, Danish companies are under increasing pressure to differentiate beyond price and scale. Legitimacy thus emerges as a key strategic differentiator, prompting firms to build trust through ESG commitments, local presence, and responsible branding. From a broader perspective, the findings point to an urgent need for regulatory action, strategic innovation, and stronger consumer awareness in a global and digital market where traditional norms are being challenged and redefined.