A portable mini humidifier was $3.48, 12 silicone bowl covers were $2.09, and a digital camera for kids was $12.99.
Temu, an online shopping platform that sells Chinese-made goods, has sold 10.8 million units in the US since its launch in September, making it the most downloaded free app on both the App Store and Google Play for the past two months. It is an app. According to data from analytics firm Sensor Tower,
Based in Boston, Temu is a subsidiary of PDD Holdings, the parent company of Chinese e-commerce giant Pinduoduo. The company has been successful in selling heavily discounted products in China for the past few years, and now has a market capitalization of his $102 billion. With Temu’s success, the company’s stock, which is listed on the Nasdaq exchange as his PDD, has seen him rise more than 32% in three months.
Temu’s business model is an experiment to remove the middleman from the equation, allowing Chinese suppliers to sell directly to US consumers and ship directly from China instead of building a network of US warehouses. .
For Chinese suppliers, Temu offers an alternative to Amazon as a gateway to US consumers and avoids the fees US companies charge their suppliers, including up to 15% referral fees.
According to the company’s website, the company offers access to PDD Holdings’ “deep network of merchants and logistics partners, as well as an established ecosystem built over many years” to offer unbeatable low prices. I can do it.
Temu’s hefty discounts have resonated with US consumers, especially in the recent holiday shopping season, which faced the highest inflation in a generation and saw US e-commerce leader Amazon and other Western posed a new challenge for its online store.
Bene Neumann purchased children’s toys, shoes and bathroom rugs from Temu during the holiday shopping season. “I don’t think Amazon has a lot of good toys. I searched Amazon for toys like this,” he told China Daily.
At Temu, women’s slippers are $7.19. On Amazon, prices for similar pairs range from $18 to $24.
“WOW! WOW! I bought two pairs of these slippers in gray and green. They are by far the most comfortable slippers I have ever owned,” customer Marsha Stocker said in a product review last week. . “The price was also right. Thank you, Tem!”
According to research firm YipitData, Temu’s sales in November were nearly four times higher than those in October, peaking at $7 million in seven days during Black Friday shopping.
Lui Ma, an investor and analyst who founded Tech Buzz China, a podcast and investor community, told WIRED that Temu is growing at “Chinese speed.” keep up with
“I think we are providing a pretty good customer experience,” said Ma, who has ordered items from the shopping platform three times. Her order includes household items and her $9 pair of Lenovo headphones, with more than 11,000 pairs of her sold on Temu.
Previous attempts by some Chinese companies to enter the US e-commerce market have met with limited success. Although Shane has found success in fast fashion, it has also been criticized for the environmental impact of selling clothes that are too cheap and mostly disposable.
Temu’s website says it “offsets carbon emissions from all deliveries” and prominently displays its intellectual property policy.
Its shipping process is slower than Amazon’s shipping process. The company says it takes 7-15 business days to receive the order, and Amazon’s delivery time averages 3-5 business days. Amazon also offers same-day or next-day shipping through its Prime subscription service.
“But Temu has better prices. It’s cheaper and worth the wait,” says Neumann.
