Temu’s Explosive Growth Secures Foothold in International Markets
In an astonishing display of rapid growth, Temu, the international arm of Chinese e-commerce giant Pinduoduo, has surpassed veteran e-commerce platform eBay in attracting returning customers abroad, just under two years after its U.S. debut.
A survey conducted in April involving 1,000 consumers revealed that 34% of respondents shop on Temu at least once a month, edging out eBay’s 29%. However, Amazon remains the dominant player, with more than 75% of those surveyed indicating they shop on the platform monthly, according to data from London-based online marketing firm Omnisend.
Launched in September 2022, Pinduoduo’s overseas venture Temu swiftly gained market share in the U.S., leveraging Pinduoduo’s proven business model. Following its official UK launch on April 21, 2023, Temu rapidly expanded into Germany, France, Italy, the Netherlands, New Zealand, Spain, and 27 other EU countries. It boasts an average of 75 million active users per month, with its operations spanning 50 countries and regions globally.
This rapid expansion, however, has not been without challenges. The European Consumer Organization BEUC, representing 45 regional consumer protection groups across EU countries, has filed complaints from consumer organizations in 17 EU member states. These complaints allege that Temu has failed to protect consumers and employed “illegal manipulation tactics” in violation of recent EU legislation, compelling consumers to spend more.
Temu has aggressively pursued customer acquisition through significant promotions and discounts. Products are directly shipped from China, with delivery times often exceeding a week. To mitigate this, Temu has invested heavily in marketing, including high-profile advertisements during two Super Bowl events, promoting the slogan “Shop Like a Billionaire.”
By the end of last year, Temu had become the most downloaded app in the U.S., consistently topping the charts on both the Apple App Store and Google Play. In January, Temu’s monthly active users in the U.S. surged past 51 million, marking a nearly 300% year-on-year increase.
