Act Daily News
A brand new on-line purchasing platform linked to considered one of China’s prime retailers has shortly develop into essentially the most downloaded app within the United States, surpassing Amazon and Walmart. Now it’s seeking to capitalize from an look on America’s largest stage.
Temu, a Boston-based on-line retailer that shares the identical proprietor as Chinese social commerce big Pinduoduo, made its Super Bowl debut on Sunday.
Temu, which runs an internet superstore for nearly the whole lot — from residence items to attire to electronics — unveiled a business throughout the recreation that inspired customers to “shop like a billionaire.”
The pitch? You don’t should be one.
“Through the largest stage possible, we want to share with our consumers that they can shop with a sense of freedom because of the price we offer,” a Temu spokesperson instructed Act Daily News in a press release.
The 30-second spot reveals the corporate’s proposition to customers: Feel such as you’re splurging by shopping for plenty of stuff cheaply. A girl’s swimsuit on Temu prices simply $6.50, whereas a pair of wi-fi earphones is priced at $8.50. An eyebrow trimmer prices 90 cents.
These surprisingly low costs — by Western requirements, not less than — have drawn comparisons to Shein, the Chinese quick style upstart that additionally presents a big selection of cheap clothes and residential items, and has made vital inroads into markets together with the United States.
Shein is taken into account considered one of Temu’s opponents, together with US-based low cost retailer Wish and Alibaba’s AliExpress, in response to Coresight Research.
Temu, pronounced “tee-moo,” was launched final 12 months by PDD, its US-listed father or mother firm previously often known as Pinduoduo. The firm formally modified its title simply this month.
PDD’s subsidiary Pinduoduo is considered one of China’s hottest e-commerce platforms with roughly 900 million customers. It made its title with a group-buying business mannequin, permitting individuals to save cash by enlisting associates to purchase the identical merchandise in bulk.
On its web site, Temu says it makes use of its father or mother firm’s “vast and deep network … built over the years to offer a wide range of affordable quality products.”
Since its rollout in September, the applying has been downloaded 24 million occasions, racking up greater than 11 million month-to-month energetic customers, in response to Sensor Tower.
In the fourth quarter of final 12 months, US app installations for Temu exceeded these for Amazon
(WMT) and Target
(TGT), in response to Abe Yousef, a senior insights analyst on the analytics agency Sensor Tower.
“Temu soared to the top of both US app store charts in November, where the app still holds the top position now,” he instructed Act Daily News, referring to iOS and Android cellular app shops.
Yousef mentioned the corporate had been significantly profitable at buying new customers by providing extraordinarily low costs and in-app flash offers, akin to 89% off sure objects.
The agency is already eyeing new territory. This month, Temu mentioned on Twitter that it plans to increase to Canada.
Michael Felice, an affiliate companion at administration consulting agency Kearney, mentioned Temu stood out just by promoting merchandise with out excessive 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,” he instructed Act Daily News.
“That said, American consumers might not even be ready to accept some of these price points … There’s always the question, ‘is it too cheap to be good?’”
Deborah Weinswig, CEO of Coresight Research, has cautioned that it might be too early to inform whether or not Temu will be capable to keep these extraordinarily low costs, free delivery and different perks.
“Temu aims to continue to experiment in marketing and offerings, which is possible thanks to its resource-rich parent company,” she wrote in a report.
Its launch, she mentioned, “comes at an opportune moment, as consumers search for value amid still-elevated inflation and a degree of economic uncertainty.”