China-linked online superstore becomes most downloaded app in US, surpassing Amazon and Walmart

[beijingwalker]

China-linked online superstore becomes most downloaded app in US, surpassing Amazon and Walmart​

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, CNN reported.

20 Feb, 2023, 5:14 pm

HONG KONG: 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, CNN reported.

Temu, a Boston-based online retailer that shares the same owner as Chinese social commerce giant Pinduoduo, made its Super Bowl debut on Sunday.

Temu, which runs an online superstore for virtually everything -- from home goods to apparel to electronics -- unveiled a commercial during the game that encouraged consumers to "shop like a billionaire".

The pitch? You don't have to be one, CNN reported. The surprisingly low prices -- by Western standards, at least -- have 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.

Shein is considered one of Temu's competitors, along with US-based discount retailer Wish and Alibaba's AliExpress, according to Coresight Research, CNN reported.

Temu, pronounced "tee-moo", was launched last year by PDD, its US-listed parent company formerly known as Pinduoduo. The company officially changed its name just this month.

PDD's subsidiary Pinduoduo is one of China's most popular e-commerce platforms with approximately 900 million users. It made its name with a group-buying business model, allowing people to save money by enlisting friends to buy the same item in bulk, CNN reported.

Since its rollout in September, the application has been downloaded 24 million times, racking up more than 11 million monthly active users, according to Sensor Tower.

In the fourth quarter of last year, US app installations for Temu exceeded those for Amazon, Walmart and Target, according to Abe Yousef, a senior insights analyst at the analytics firm Sensor Tower, CNN reported.

"Temu soared to the top of both US app store charts in November, where the app still holds the top position now, " he told CNN, referring to iOS and Android mobile app stores.

Yousef said 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 firm is already eyeing new territory. This month, Temu said on Twitter that it plans to expand to Canada, CNN reported.

China-linked online superstore becomes most downloaded app in US

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, CNN reported.

www.dtnext.in

 

[beijingwalker]

 

[Hamartia Antidote]

Temu Superbowl ad

 

[dbc]

free shipping from China with a 30% discount. looks like the CCP is subsidizing US shoppers now, I guess thank you TEMU.

 

[beijingwalker]

free shipping from China with a 30% discount. looks like the CCP is subsidizing US shoppers now, I guess thank you TEMU.

Seems you don't really know Pinduoduo and how it managed to beat Alibaba as a much latecomer, go and check out their sale's strategy first, very very unique.

 

[dbc]

Seems you don't really know Pinduoduo and how it managed to beat Alibaba as a much latecomer, go and check out their sale's strategy first, very very unique.

I don't know how they can make a profit. I got a 100$ voucher when I checked out the site, I didn't see anything above 14$s with free shipping and 30% off. When you consider purchase cost, overhead, shipping and import duty I'm pretty sure they aren't making a profit. May be they're planning to operate at a loss for a few years to gain market share but they don't sell any popular name brands so I don't see how they can compete with Amazon or walmart in the long run.

I know their business model, they buy direct from manufacturers typically squeezing them on cost. They ship direct to the customer from China, sure they cut the factory's margin but they still incur cost of storage, processing, shipping and import duty.

 

[beijingwalker]

I don't know how they can make a profit. I got a 100$ voucher when I checked out the site, I didn't see anything above 14$s with free shipping and 30% off. When you consider purchase cost, overhead, shipping and import duty I'm pretty sure they aren't making a profit. May be they're planning to operate at a loss for a few years to gain market share but they don't sell any popular name brands so I don't see how they can compete with Amazon or walmart in the long run.

I know their business model, they buy direct from manufacturers typically squeezing them on cost. They ship direct to the customer from China, sure they cut the factory's margin but they still incur cost of storage, processing, shipping and import duty.

Pinduoduo is a private company like Alibaba, if they don't make money, they go bankrupt, if they make money, they expand, we don't have to worry how they operate, Pinduoduo in China is based on group buying.

 

[K_Bin_W]

I am an online shopper I guess these days everyone is, I ordered a few items from Temu I say I am delighted, Whole experience end to end was a pleasure, with speedy delivery tracking and notifications. In the future Temu in my 1st choice unless they don't have the items I am looking for.

The only thing I cannot comment on is the return process not sure how good that is, Amazon is pretty good but that all depends on the merchant.

 

[Iñigo]

Question

What about JD dot com

PDD Market Cap 110 B
JD Market Cap 70 B

 

[大汉奸柳传志]

Question

What about JD dot com

PDD Market Cap 110 B
JD Market Cap 70 B

Jd to PDD is like Target to Walmart

 

[BHAN85]

free shipping from China with a 30% discount. looks like the CCP is subsidizing US shoppers now, I guess thank you TEMU.

all scams start giving something free or almost free to the victim, once it falls, then you can squeeze it out.

 

[BHAN85]

the headline creates confusion.

The most downloaded is in a recent quarter, it's not the most downloaded ever.

Obviously Amazon/Walmart apps can't be each quarter the most downloaded, because people download once and keep installed, they are not downloading every quarter again over and over .

PDD is a new app and it's more downloaded recently, but that doesnt mean more total active installations/users than amazon/walmart.

 

[大汉奸柳传志]

all scams start giving something free or almost free to the victim, once it falls, then you can squeeze it out.

only drug dealers operate like that coz their products are addictive, what Temu does is online tryvertising, sort of.

 

[Iñigo]

大汉奸柳传志

Thank you

 

[casual]

I don't know how they can make a profit. I got a 100$ voucher when I checked out the site, I didn't see anything above 14$s with free shipping and 30% off. When you consider purchase cost, overhead, shipping and import duty I'm pretty sure they aren't making a profit. May be they're planning to operate at a loss for a few years to gain market share but they don't sell any popular name brands so I don't see how they can compete with Amazon or walmart in the long run.

I know their business model, they buy direct from manufacturers typically squeezing them on cost. They ship direct to the customer from China, sure they cut the factory's margin but they still incur cost of storage, processing, shipping and import duty.

Walmart isn't a competitor since walmart doesn't really have any online presence. Amazon takes 50% commission on their sales from manufacturers. With margins that high, Temu sees an opening. Honestly, it's about time something give Amazon some competition.