Chinese e-commerce apps Temu, Shein, TikTok Shop emerge as online retail force in US, other overseas markets on back of low-cost pricing strategy

Pinduoduo-owned Temu became the most downloaded app in any category during the last week of 2022

This international expansion reflects how these apps’ operators are finding more opportunities beyond mainland China

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Temu, a budget shopping service run by e-commerce firm Pinduoduo, was the most downloaded app in the US in November and December, according to Sensor Tower. Photo: Shutterstock

Published: 9:00pm, 4 Jan 2023Updated: 10:15pm, 4 Jan 2023

Next-generation Chinese e-commerce apps, led by Temu, Shein and TikTok Shop, emerged last year as an online retail force in large consumer markets around the world, including the United States, on the back of their highly competitive pricing strategy, which has challenged more established global shopping platforms such as Amazon.com.

These apps, which were created for overseas markets, entice international consumers with prices that are cut to the bone and efficient delivery services, while bypassing traditional intermediaries like exporters, wholesalers and bricks-and-mortar retailers, according to Zhang Yi, chief executive at market research firm iiMedia in southern Guangdong province.

Temu, for example, became the most downloaded app in any category during the last week of 2022, according to the latest data from mobile market intelligence service AppMagic.

The Shein-style budget shopping app, which was launched by Shanghai-based e-commerce firm Pinduoduo in September last year, was also the most downloaded app in the US in November and December, according to mobile app market intelligence provider Sensor Tower. Temu had 13.6 million installations in the US, or 96 per cent of its global total, at the end of last year.

A smartphone displays a huge discount programme offered by Chinese fast-fashion online retailer Shein. Photo: Shutterstock

The popularity of Temu, which has attracted US consumers to buy made-in-China goods like US$4.09 winter gloves, came on the heels of the success of Shein. The Chinese fast-fashion retailer surpassed Amazon as the most downloaded shopping app in North America in 2021, thanks to merchandise like US$5.50 leggings and US$9.90 puffer vests.

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