Media reported that a new online shopping platform linked to one of China’s top retailers has quickly become the most downloaded app in the US, surpassing Amazon and Walmart.
Reaching To The Top
Yes, we are talking about Temu which is a Boston-based online retailer that shares the same owner as Chinese social commerce giant Pinduoduo, which made its Super Bowl debut on Sunday.
Temu basically runs an online superstore for virtually everything .
From home goods to apparel to electronics, it unveiled a commercial during the game that encouraged consumers to “shop like a billionaire”.
The platform is offering surprisingly low prices at least by Western standards, at least as it has drawn comparisons to Shein, the Chinese fast fashion upstart that also offers a wide selection of inexpensive clothing and home goods, and has made significant inroads into markets including the United States.
Notably, Shein is considered one of Temu’s competitors, along with US-based discount retailer Wish and Alibaba’s AliExpress, according to Coresight Research.
Here, Temu which is also pronounced as “tee-moo” was launched last year by PDD.
Its US-listed parent company formerly known as Pinduoduo and the company officially changed its name just this month.
Moving Ahead From Rivals
When it comes to PDD’s subsidiary Pinduoduo, it is one of China’s most popular e-commerce platforms with approximately 900 million users.
The online platform made its name with a group-buying business model, allowing people to save money by enlisting friends to buy the same item in bulk, media reported.
The application got a huge response as it has been downloaded 24 million times, racking up more than 11 million monthly active users, since its rollout in September.
It reached to the point where US app installations for Temu exceeded those for Amazon, Walmart and Target, in the fourth quarter of last year according to Abe Yousef, a senior insights analyst at the analytics firm Sensor Tower.
Referring to iOS and Android mobile app stores, he said, “Temu soared to the top of both US app store charts in November, where the app still holds the top position now,”.
Further added that the company had been particularly successful at acquiring new users by offering extremely low prices and in-app flash deals, such as 89 per cent off certain items.
The platform is already eyeing new territory and this month, Temu said on Twitter that it plans to expand to Canada.
