Know How Temu Is Engaging Millions Of People Worldwide
Take a look at how Temu, an E-commerce business, is expanding worldwide with 167 million active monthly users.
Owner Of Temu
Temu (pronounced as ‘Teh-Moo’) is an online marketplace operated by its Chinese parent company, Pinduoduo Inc., the largest agriculture platform in China.
Temu is owned by Colin Huang Zheng, a Chinese businessman and investor. Colin worked as an engineer at Google for three years before starting his e-commerce site, Oku, which was sold in 2010 for about $2.2 million.
Huang left his position as CEO of Pinduoduo in 2020, quitting the executive role but remaining influential in the company's strategic growth.
Temu was launched in September 2022 as a part of PDD Holdings (which also owns Pinduoduo).
What Has Temu Become Today
Temu is currently available in 49 countries, primarily targeting Northern America, and has 165 million downloads worldwide.
It has almost 167 million monthly active users, with 500 million visits to Temu.com every month.
According to the statistics, the average time a user spends on Temu daily is 22 minutes.
In just a year, Temu became what Amazon had become in many long years. However, it still falls behind Amazon in many ways, such as shipping speed, product quality, customer service, etc.
Secrets Behind Temu’s Rapid Growth
Temu spends a lot of money on marketing. According to a report, $4 billion has been spent on marketing so far. Three back-to-back ads were played in Super Bowl 2024, and the company spent $21 million on them. Temu has a strategy of flooding social media platforms with its ads, making users buy something or download the application.
Temu’s shipping model allows vendors, factories, and wholesalers in China to ship their products directly to consumers, eliminating the middleman or intermediaries.
The website offers heavy discounts and offers on the products, as there is no role of the middleman in shipping. Also, the vendors are told to sell their products at very low prices, even at a loss sometimes. You can buy a smartwatch for $10, headphones for $19, and kitchen appliances starting from $2. Yes, Temu is that cheap! They even sold products at one cent price in their promotional events.
The company has integrated many provoking elements into the app, leading users to shop more, like spinning wheels for discounts and offers, limited edition tags, countdown clocks, $100 coupons, ‘under 99 cents’ tags, 50–70% discount sections, and many more.
Temu offers users a feature called ‘Team buying’, where they can team up and order products in bulk at more discounted rates. It also has Free shipping and a 90-day return policy, making the customer buy more items.
Instead of expanding domestically, Temu strategically aimed to enter internationally first. This helped it gain insights into global consumer trends and provided it with diverse revenue sources.
And that’s how Temu has consistently ranked at the top of the Apple Store and Google Play Store in the United States, surpassing Amazon and Walmart. It aims to triple its sales to $60 billion globally in 2024.
Thanks for reading!