Home ›› 11 Apr 2023 ›› Asia Biz
Shopping online at Temu, Laurie Silva paid just $1.25 for earrings and $15 for a cardigan -- she is among millions of US consumers the Chinese platform is wooing with low-cost bargains and a dizzying array of products.
Temu topped US app download rankings in early April, a spot it held since January, but its rapid rise comes as platforms with links to China face growing scrutiny and when a ban on youth favorite TikTok appears increasingly inevitable.
According to Sensor Tower data, some of the most popular platforms downloaded in the US currently have Chinese roots, including TikTok, video-editor CapCut and fashion upstart Shein.
Temu is positioned as an Amazon-like superstore, selling everything from make-up to homeware and electronics, and its quiet launch last September marked Chinese e-commerce giant Pinduoduo’s first foray into the US market.
Based out of a Boston office block, Temu’s out-of-the-blue success makes it the second Chinese-made shopping app -- after Gen Z darling Shein -- to make a splash in America in recent years.
“I’ve seen so many things in their catalog... offered on Amazon and other online retailers for much more,” Silva, a 65-year-old in California, told AFP.
She has placed around 20 orders on Temu, buying craft supplies, jewelry and gifts.
Another customer, 38-year-old Stephanie Wolfe, said she first bought items like eyeliner and jewelry to test the service in January.
“It got here so quick, I couldn’t believe it,” she said. “Once I realized it was legit, I just started ordering more.”
Fueling the frenzy were Temu’s commercial spots during the Super Bowl in February that asked more than 100 million US viewers to “shop like a billionaire.”
“I was like: ‘Oh that’s what I use!’ Since then I’ve noticed it’s gaining more traction,” said Wolfe.
According to Sensor Tower, Temu has had 33 million US downloads since its launch, with user numbers surging on the month of the Super Bowl, the most-watched TV event in the US.
China connections
The rise of Shein and Temu comes as leading US fashion companies seek to reduce their exposure to China with worries intensifying over growing US-China tensions, said Sheng Lu, a professor of fashion and apparel studies at the University of Delaware.
Both brands primarily source their products from China and Temu mostly ships its goods directly from there as well, he added, contrasting this against Amazon’s US-based distribution centers.
This allows Temu to tap China’s strengths in producing apparel in greater varieties with greater flexibility -- all while qualifying for US waivers on import duties for lower value shipments, Lu said.
