Truth of Temu: How It Became America’s Favorite App

Source : sacbee

In less than six months since its launch in September 2022, Temu has become America’s favorite shopping app, topping app store download charts and revolutionizing the way American consumers shop. Temu offers a wide selection of quality products at wholesale prices, sourced from its global network of suppliers and manufacturers.

The Boston-based startup’s rapid expansion has been nothing short of meteoric. Temu’s app has been downloaded 24 million times with more than 11 million monthly active users, CNN reported, citing Sensor Tower. US app installations for Temu exceeded those for Amazon, Walmart, and Target during the fourth quarter of last year. Temu has taken the e-commerce industry by storm with a simple value proposition: affordability. Temu offers a range of product categories such as beauty, fashion, tools, and pet supplies at unbeatable prices. At the same time, it is introducing a more fun and interactive way of online shopping that is engaging consumers, according to industry observers.


Michael Felice, an associate partner at management consulting firm Kearney, said Temu stood out simply by selling products without high markups. “Temu might be exposing a white space in the market wherein brands have been producing at extreme low cost, and along the value chain there’s been so much bloated cost passed on for margin,” Felice told CNN. Temu has parent company PDD Holdings to thank for the speed at scaling up its operations and attracting customers. PDD is a Nasdaq-listed multinational commerce group with a stock market value of $120 billion and extensive experience working with global suppliers and shipping partners. PDD has given Temu the operational and financial resources to quickly roll out a wide range of quality products at affordable prices. Temu’s marketing campaign has been equally impressive. The company climbed onto advertising’s biggest stage with a pair of Big Game advertising slots and a colorful and thought-provoking ad titled “Shop Like A Billionaire.” The ad was widely seen as a major success, with nearly 20% of respondents in an iSpot.tv survey saying they were “much more likely” to purchase the brand’s products and services after watching the commercial.


According to iSpot.tv, a cross-platform TV measurement firm, Temu’s spot was the second-most “colorful” ad during the Super Bowl. A separate study by EDO, Inc. found that the Temu commercial was the fourth-most effective at driving engagement, and that spot’s level of engagement with viewers was 10 times the median for spots run during the game. Industry experts have praised Temu for its ability to generate buzz and drive sales. In addition to the commercial, Temu gave away $10 million in cash, prizes, and coupons as part of an integrated marketing campaign to attract users. “Temu is already a popular app in the U.S. The Super Bowl commercial has stimulated even more interest and will no doubt boost downloads and ultimately sales,” said Neil Saunders, managing director of GlobalData. “Not least because the low prices and value for money message Temu pushed during the Super Bowl will resonate with many Americans.” Temu’s “Shop Like A Billionaire” ad accomplished “exactly what it set out to do,” said Melissa Minkow, director of retail strategy at CI&T, a digital consultancy. “It was a very memorable spot, and it inspired an impressive amount of curiosity among viewers who didn’t already recognize the brand. There’s a lot going on during the Super Bowl – people are gathered, there are many commercials competing for attention, etc. Temu’s ad disrupted the noise,” Minkow said.


Temu entered the US e-commerce industry at a time when Americans were looking to do more with their money. Temu’s gamification of its shopping experience has injected a new sense of fun and excitement, according to industry experts. Temu’s discovery-based shopping recommends products based on shopper preferences and interests, which could be successful in the US, according to Connie Chan, a partner at venture capital firm Andreessen Horowitz. “There’s just something really interesting and compelling about the discovery-based shopping that is not just about search and browse,” said Chan. “Temu and Shein are disrupting the boring U.S. e-commerce market more than anyone else,” said Juozas Kaziukenas, founder of the e-commerce research firm Marketplace Pulse. “Look at the rest of the top 100 apps — they’ve been around for 10-plus years, and what fun have they done?” Will Temu be a flash in the pan or will its model of affordable e-commerce take root and flourish? The jury is still out, but the scorecard for Temu at the six-month mark looks promising. As the Washington Post wrote about Temu, “Never underestimate America’s love of bargains.”




Back to top button