A
package
from
Temu
is
seen
in
front
of
a
screen
with
the
Temu
logo.
(Photo
by
Nikos
Pekiaridis/NurPhoto
via
Getty
Images)
Nurphoto
|
Nurphoto
|
Getty
Images
Chinese
low-cost
retailer
Temu
is
dominating
app
stores
in
Japan
and
South
Korea
in
its
category,
dethroning
rival
Shein
after
its
successful
expansion
in
Western
markets.
“Temu
has
rapidly
expanded
its
footprint
beyond
the
U.S.
and
into
a
number
of
international
geographies
and
we
believe
is
now
available
in
40+
countries
…
where
we
continue
to
see
opportunities
for
growth
in
the
quarters
ahead,”
said
Goldman
Sachs
in
an
Oct.
4
report.
The
investment
firm
estimated
that
Temu,
which
is
owned
by
PDD
Holdings,
“now
generates
more
than
$1
billion
of
[monthly
transaction
value]”
and
expects
“continued
growth
into
second
half
2023.”
Its
rival
Shein
was
estimated
to
be
on
track
to
hit
$30
billion
in
transaction
value
in
2022,
according
to
media
reports.
Temu
has
overtaken
Shein
in
Japan
and
South
Korea
by
staying
at
the
top
of
shopping
app
rankings
in
those
locations
for
a
longer
period
of
time,
according
to
data.ai
analysis
shared
with
CNBC.
Since
its
July
launch
in
Japan
to
Nov.
2,
“Temu
has
ranked
#1
by
daily
iOS
&
Google
Play
shopping
app
downloads
in
Japan
for
101
days
out
of
124
days,”
said
the
app
analytics
and
data
company.
By
comparison,
Shein
spent
just
17
days
topping
the
two
app
stores
in
the
same
period
in
Japan.
Temu
was
the
fastest
to
reach
four
million
downloads
in
Japan,
taking
around
121
days,
compared
to
Shein
which
took
155
days,
according
to
data.ai.
Japanese
marketplace
Mercari
took
427
days
and
Amazon
660
days,
the
data
showed.
Similarly,
in
South
Korea,
Temu
ranked
No.
1
by
daily
iOS
&
Google
Play
shopping
app
downloads
for
65
days
out
of
93
days
from
Aug.
1
to
Nov.
2,
overtaking
Alibaba‘s
AliExpress
(25
days)
while
Shein
ranks
among
the
top
5.
Among
the
top
shopping
apps
in
South
Korea, Temu
was
the
fastest
to
reach
2
million
downloads
at
around
88
days.
Shein
took
382
days
while
AliExpress
took
366
days
to
hit
the
same
milestone.
Temu
and
Shein’s
rivalry
extend
outside
the
e-commerce
space
to
the
courtroom.
Shein
sued
Temu in
December
over
intellectual-property
infringement
while
Temu
accused
Shein
in
July
of
threatening
and
forcing
manufacturers
into
exclusivity
agreements.
But
recent
documents
showed
that
both
parties
have
applied
to
end
their
lawsuits
against
each
other.
Temu’s
rise
Temu
is
backed
by
Nasdaq-listed
Chinese
tech
giant PDD
Holdings,
which
also
owns
China-based
e-commerce
app
Pinduoduo.
Launched
in
the
U.S.
in
September
2022,
Temu
was
PDD’s
first
major
push
overseas
and
quickly
found
success
among
budget-conscious
consumers.
In
just
a
few
weeks,
the
Chinese
ecommerce
app
rose
to
the
top
of
app
stores
and
subsequently
expanded
rapidly
across
countries
such
as
Australia,
New
Zealand,
France,
Italy,
Germany,
the
Netherlands,
Spain,
and
the
U.K.
Headquartered
in
Boston,
Massachusetts,
the
Chinese
online
retailer
focuses
on
selling
made-in-China
goods,
from
fashion
to
household
products,
at
low
prices
to
overseas
consumers.
Similarly,
Shein
relies
on
contracted
manufacturers,
mostly
in
China,
to
design,
produce
and
ship
its
low-priced
products.
Temu
made
its foray
into
Asia
through
Japan
and
South
Korea
in
July.
It
then
entered
the
Philippines
on
Aug.
26
before
launching
in
Malaysia
on
Sept.
8.
watch
now
“We
believe
the
main
reason
for
[PDD’s]
131%
year-on-year
growth
in
transaction
service
revenues
and
135%
year-on-year
growth
in
cost
of
goods
sold
in
second
quarter
2023
was
related
to
fast
ramp
of
Temu
performance,”
Citi
analysts
said
in
a
Aug.
29
report.
The
platform
has
been
expanding
rapidly
since
its
launch
by
leveraging
its
parent
company’s
strength
in
supply
chain
and
marketing.
“Much
of
PDD’s
incremental
investment
dollars
have
been
deployed
to
make
Temu
happen,”
said
Bernstein
analysts
in
a
Sept.
15
report,
adding
that
Temu’s
multi-million
Super
Bowl
advertisement
“solidified
Temu’s
mind
share
for
a
number
of
its
target
customers.”
“We
believe
that
Temu’s
rapid
rise
in
popularity
was
supported
by
the
company’s
elevated
marketing
investments,
its
low
prices
and
focus
on
promotions,
and
to
the
success
of
its
referral
campaigns,”
said
Berstein’s
analysts.
The
analysts
said
they
expect
to
see
“an
increase
in
the
number
of
active
users
and
order
volume”
in
Temu
contributing
to
non-U.S.
transaction
value
and
“increasingly
contributing
to
growth
from
here.”
In
June,
the
U.S.
House
Select
Committee
alleged
that
Shein
and
Temu
violated
import
tariff
law
by
importing
goods
into
the
U.S.
without
paying
import
duties
or
making
shipments
subject
to
human
rights
reviews.
watch
now
