The most popular application in the USA is a new digital shopping platform connected to a significant Chinese retailer, outpacing even Amazon and Walmart in downloads. The platform, called Temu, is based in Boston and is owned by the same company as Chinese social commerce leader Pinduoduo.
Temu offers an online store with various products, including home goods, clothing, and electronics. During the Super Bowl, he debuted with an encouraging commercial for people to “shop like a magnate,” even if they are not one.
According to a statement from a spokesperson for Temu to CNN, they want to convey to their customers that they can binge with a feeling of liberation due to the prices they offer. Their ad campaign shows their value proposition: to give customers the sense of indulging in a shopping spree while purchasing products at a low cost.
Temu’s prices for items like a woman’s swimsuit for $6.50, wireless earphones for $8.50, and an eyebrow trimmer for 90 cents have been compared to Shein. This Chinese fast fashion company also offers a broad range of affordable clothing and home items and has significantly impacted markets, including the US. Coresight Research considers Shein, US-based discount retailer Alibaba’s AliExpress and Wish, as Temu’s competitors.
Scaling the Rankings
Temu uttered “tee-moo,” was introduced by PDD, a US-listed parent company previously Pinduoduo, and launched last year. PDD’s subordinate, Pinduoduo, is a well-known e-commerce platform in China with around 900 million users.
Its success came from its group-buying business model, which allowed users to purchase items in bulk and save money by inviting friends to do the same. Temu claims to utilize PDD’s extensive network, developed with time, to provide various high-quality products at affordable prices, as stated on its website. The company changed its name officially just this month.