Online shopping App has become the most popular in U. S.
2023.02.17 01:55
Online shopping App has become the most popular in U. S.
By Kristina Sobol
Budrigannews.com – Overtaking Amazon and Walmart as the most downloaded app in the United States, a brand-new online shopping platform linked to one of the largest retailers in China has quickly risen to the top spot. Now it wants to make money from its appearance on the biggest stage in America.
On Sunday, Temu, an online retailer based in Boston that is owned by the same company as the Chinese social commerce powerhouse Pinduoduo, made its Super Bowl debut.
During the game, Temu, which operates an online superstore for virtually everything, introduced a commercial that encouraged customers to “shop like a billionaire.”
The offer? You are not required to be one.
In a statement, a Temu spokesperson stated, “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.”
The 30-second advertisement provides users with the following offer: You might think you’re splurging by buying a lot of cheap things. On Temu, a woman’s swimsuit costs just $6.50, while wireless earphones cost $8.50. A 90 cent eyebrow trimmer is available.
The Chinese fast fashion upstart Shein, which also offers a wide selection of inexpensive clothing and home goods and has made significant inroads into markets including the United States, has been compared to these surprisingly low prices, at least by Western standards.
Coresight Research says that Shein is one of Temu’s rivals, along with Wish, a discount retailer based in the United States, and Alibaba’s AliExpress.
Temu, pronounced “tee-moo,” was launched by PDD, its parent company Pinduoduo, which is listed in the United States. This month marks the official change in the company’s name.
With approximately 900 million users, Pinduoduo, a subsidiary of PDD, is one of the most popular e-commerce platforms in China. It became famous thanks to its group-buying business model, which allowed friends to buy the same item together and save money.
Temu claims that it makes use of the “vast and deep network… built over the years to offer a wide range of affordable quality products” on its website.
Sensor Tower says that the application has been available since September and has been downloaded 24 million times, with over 11 million active users on a monthly basis.
Abe Yousef, a senior insights analyst at the analytics company Sensor Tower, says that Temu had more US app installs than Amazon (TGT) did in the fourth quarter of last year.
He stated, referring to the iOS and Android mobile app stores, “Temu soared to the top of both US app store charts in November, where the app still holds the top position now.”
According to Yousef, the company had been particularly successful in acquiring new customers by providing extremely low prices and in-app flash deals, such as a discount of 89 percent on certain items.
The company is already looking into new areas. Temu announced on Twitter this month that it intends to expand to Canada.
Temu stood out, according to associate partner Michael Felice of management consulting firm Kearney, simply by selling products without high markups.
He stated, “Temu might be exposing a white space in the market where brands have been producing at an extremely low cost and there has been so much bloated cost passed on for margin along the value chain.”
However, American consumers may not even be ready to accept some of these prices. There is always the question, “Is it too cheap to be good?”
Coresight Research CEO Deborah Weinswig has warned that it may not be possible to predict whether Temu will be able to keep its extremely low prices, free shipping, and other benefits.
She stated in a report, “Temu aims to continue experimenting in marketing and offerings, which is possible thanks to its resource-rich parent company.”
She stated, “Comes at an opportune moment, as consumers search for value amid still-elevated inflation and a degree of economic uncertainty, its launch comes at an opportune moment.”
