PDD’s budget shopping app Temu sees rapid growth in first quarter as Chinese apps battle for US consumers’ wallets
- Temu downloads rose 57 per cent in the first quarter to 19 million, keeping its spot at the top of the download charts
- Temu and Shein have been battling for US consumers with cutthroat pricing that has helped them maintain momentum amid high inflation
Temu saw 19 million downloads in the first three months of the year, bringing its total to 33 million downloads since it launched in the US in September, according to mobile intelligence firm Sensor Tower.
Temu is currently the top-ranked free app in the US on both Apple’s App Store and Google Play, a spot it has largely guarded since November
Temu, like its rival Shein, has grown rapidly by targeting price-sensitive consumers in overseas markets with inexpensive, made-in-China goods across a variety of product categories, which has become a winning strategy since a spike in global inflation last year and growing macroeconomic pressure, according to Seema Shah, senior director of investor research at Sensor Tower.
On Temu – pronounced “tee-moo” – US consumers can find dirt-cheap deals with free shipping and free returns for unsatisfied customers. The platform is full of jewellery for under US$1 and clothing for less than US$5.