Hong Kong
CNN
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A new online shopping platform linked to one of China’s top retailers has overtaken Amazon and Walmart to become the most downloaded app in the US. Now trying to profit from appearances on America’s biggest stage.
Boston-based online retailer Temu, which shares ownership with Chinese social commerce giant Pinduoduo, made its Super Bowl debut on Sunday.
Temu, which operates an online superstore that sells virtually everything from homewares to apparel to electronics, has released a commercial during the game that encourages consumers to “shop like a millionaire.”
pitch? you don’t have to be alone.
A Temu spokesperson told CNN, “Through the biggest stage possible, we want to share with consumers that the prices we offer give them the freedom to shop.”
The 30-second spot shows the company’s suggestions to users. women’s swimwear Temu costs just $6.50, pair of wireless earbuds The price is $8.50. eyebrow trimmer It costs 90 cents.
These staggeringly low prices have been compared, at least by Western standards, to Shein, a Chinese fast-fashion startup that offers a wide selection of inexpensive clothing and household items and has made significant inroads into markets, including the United States. increase.
According to Coresight Research, Shein is considered one of Temu’s competitors, along with US-based discount store Wish and Alibaba’s AliExpress.
Temu, pronounced “Temu,” was launched last year by its US-listed parent company, PDD.The company officially changed its name Only this month.
Pinduoduo, a subsidiary of PDD, is one of China’s most popular e-commerce platforms with about 900 million users.that made a name for itself People can save money by adopting a group-buying business model and having friends buy the same item in bulk.
Moreover websiteTem says it leverages its parent company’s “extensive and deep network … offering a wide range of affordable, high-quality products built over the years.”
Since its launch in September, the application has been downloaded 24 million times and has over 11 million monthly active users, according to Sensor Tower.
Temu’s US app installs surpassed Amazon’s in the fourth quarter of last year
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(target)said Abe Yousef, senior insight analyst at analytics firm Sensor Tower.
“Temu climbed to the top of both US app store charts in November and still holds the top spot today,” he told CNN, referring to the iOS and Android mobile app stores. bottom.
According to Yousef, the company has been particularly successful at attracting new users by offering very low prices and in-app flash sales such as 89% off certain items.
The company is already looking into new territory. Earlier this month, Temu said on his Twitter: Plan to expand to Canada.
Michael Ferris, an associate partner at management-consulting firm Kearney, said Tem stood out just by selling its products without raising prices too high.
“Temu may be exposing a market vacuum where brands are producing at extremely low costs, and along the value chain, too many bloated costs have been passed on to margins. I will,” he told CNN.
“Having said that, the American consumer may not be ready for some of these price points…there is always the question, ‘Isn’t it too cheap to be good?’”
Coresight Research CEO Deborah Weinswig warns that it may be too early to tell if Temu can keep up with these extremely low prices, free shipping and other perks.
“Temu aims to continue the marketing and product experiments possible thanks to its well-resourced parent company,” she wrote in the report.
Its launch is “perfectly timed as consumers are still looking for value amid rising inflation and some degree of economic uncertainty,” she said.
