The Chinese owned ecommerce app Temu is surpassing expectations and growing faster than imagined, while still straining its logistics, completing with Shein and Amazon.
Temu, a cut-price ecommerce app — owned by the big Chinese internet company PDD Holdings, which also runs the massive e-commerce platform Pinduoduo—launched in the US in September 2022 and has quickly risen to the top of app stores, mostly because of Texas-based customers, who like most customers worldwide prefer to shop at sites that offer heavy discounts, like Temu offering "up to 90 percent off" Black Friday sales. The app is significantly investing in Black Friday and Christmas promotions in an effort to take on rivals Shein and Amazon and dominate the American market.
As of the present, 47 countries use Temu. In July, the app was released in Japan; in August, it made its way to the Middle East through Israel and Southeast Asia through the Philippines. 250 million downloads had occurred by November, based on statistics from the consulting firm Business of Apps.
At least for the time being, the company's steep discounting tactics through coupons and subsidies, along with its large advertising expenditures, appear to be working. Temu established a goal for itself to reach $10 billion in global sales at the beginning of 2023. Investment management firm CICC's analysis projects that this year's revenues will top $18 billion if the holiday season is successful.
