A virtual shopping platform named Temu surpassed e-commerce majors Amazon and Walmart in new App downloads in America.
The Boston-based online store is owned by China’s Pinduoduo. Temu’s Super Bowl commercial “shop like a billionaire” brought the company’s strong performance to the headlines.
CNN reported that Temu (pronounced “tee-moo”) is just a year-old app and has already taken on the e-commerce market by storm.
The secret behind Temu’s success is its super low pricing in comparison with other e-commerce retailers in the Western markets.
Temu has the advantage of being the subsidiary of Pinduoduo, renamed PDD last month. A CNN report estimates that PDD is one the largest online retailers with approximately 900 million users. The foundation of the parent company’s networks is helping Temu offer its customers affordable prices.
Sensor Tower has reported that Temu has had 24 million downloads and 11 million active users since its launch in September last year.
The competitors for Temu are Chinese e-commerce platforms like e-commerce giant Shien, AliExpress and a US-based discount e-tailer Wish.
Bloomberg Second Measure has reported that Shein holds the largest share in the US fast fashion market outgrowing legacy brands like Zara and H&M.
Chinese online retailers are rapidly growing in American markets due to their wide range of products at extremely competitive prices.
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