What To Know About Temu: New Chinese-Owned Fast Fashion App

Recently, Chinese-owned discount online marketplace Temu made its Super Bowl debut, offering bargain prices on everything from Lenovo earbuds to 99 cent holiday outfits. This comes after Shein, an ultra-discounted fast fashion brand, made a US debut and quickly gained attention due to its heavily discounted pricing and social media hype.

The app's slogan, "team up, price down," is a nod to its philosophy of "team up, price down." By pooling demand for a specific item, it can reduce prices significantly. This approach has drawn comparisons with US discount retailer Wish and Chinese e-commerce platform Alibaba's AliExpress.

1. It’s Owned by Pinduoduo

Temu is owned by PDD Holdings, owner of the popular Chinese social commerce app Pinduoduo. Drawing upon PDD's expertise, experience, and deep pockets, Boston-based Temu has built a platform that is capable of scaling rapidly and efficiently.

The company is taking advantage of its parent's network of over 11 million suppliers and logistics fulfillment partners to source products at competitive prices and offer customers a smooth shopping experience. Furthermore, it has an effective customer care program with free shipping and returns policies.

Similar to Shein, an e-commerce app that has made significant inroads into the US market, Temu also attempts to capitalize on American shoppers' affinity for budget-friendly goods. Both apps provide a wide selection of items including apparel and electronics at prices which are surprisingly low by Western standards; they have been successful in drawing in young users through aggressive marketing efforts.

But Temu has received a large number of complaints to the Better Business Bureau (BBB), who are concerned with delivery delays, damaged items and unhelpful customer service. According to BBB records, there are 84 customer reviews on its website as well as 120 complaints - most focusing on delays in delivery, damaged products and unhelpful customer service.

Another issue with Temu is that many products sold there aren't manufactured in the U.S., but rather are produced overseas and shipped directly to customers - orders which could take up to 7-15 days to arrive, making them much slower than products on rival e-commerce platforms such as Amazon, Wired reports.

Temu still has a lot of demand for affordable clothing and electronics, despite these obstacles. If it can expand its user base and enhance its offerings, Temu could become one of the most successful e-commerce businesses in America.

Temu not only offers inexpensive goods, but it's also a great platform for sellers to promote their brands and reach new buyers. The app even has a chat window feature that enables sellers to engage with consumers directly and negotiate prices.

2. It’s Cheap

What To Know About Temu: Chinese-Owned Fast Fashion App

Are you in the market for a great bargain? Look no further than Temu, an app launched in September that has quickly taken over Apple's US app store. Backed by PDD Holdings and operated as sister companies of Chinese social commerce giant Pinduoduo, Temu utilizes economies of scale to offer products at incredible low prices.

The app's model is to bypass intermediaries and ship goods directly from China, helping it maintain low prices. Furthermore, it fosters competition among sellers who can undercut each other and lower prices for their customers.

Temu's model isn't without risks. Like other discount shopping apps, it relies heavily on word of mouth advertising for sales growth and may not survive long if this strategy doesn't pan out. As the business expands, companies will need to invest in more costly and ad-heavy marketing initiatives; however, this can become too expensive and make ads unprofitable for companies.

Some experts have questioned if Temu's model is sustainable. With products being sold at such low prices, it could potentially become vulnerable to price wars and it's uncertain if Temu can compete with larger online retailers who can invest in advertising campaigns.

Some users of the app have complained about receiving packages with products that do not match their descriptions. These complaints have led to numerous customer complaints on the Better Business Bureau website, including dozens of negative ratings and reviews.

Many of these issues can be attributed to China's supply chain, which isn't fully transparent. The company doesn't disclose how much it pays for products and there have been reports that some suppliers tacked on markups to cover their expenses.

But the company says it has rigorous anti-counterfeiting measures in place and is working closely with suppliers to monitor counterfeits. Furthermore, it strives to protect its customers by offering tools that enable people to report suspicious orders and verify if a product is genuine or counterfeit.

3. It’s Social

Temu, a Chinese-owned fast fashion app, has amassed millions of downloads in four months and is currently at the top of the iPhone app store. But its aggressive marketing approach has been met with criticism as well.

The app strives to be the go-to destination for those searching for budget friendly clothing and accessories. It boasts 29 major categories and over 250 subcategories, plus thousands of new items added daily.

In addition to its extensive product catalog, the company places emphasis on inclusivity and diversity. To meet the demands of its diverse customer base, it has developed a number of product categories such as big & tall and curve+plus items. With this in mind, the company strives to become an all-inclusive destination for shoppers regardless of identity or community.

As part of its social e-commerce strategy, the app rewards users for sharing their favorite items on social media and providing them with credit as a reward. This model is similar to Pinduoduo - widely considered one of China's most successful social e-commerce companies.

However, it remains uncertain how well Temu's model will perform in the US. Juozas Kaziukenas, founder of e-commerce intelligence firm Marketplace Pulse, predicted that many sellers would remain loyal to Amazon even if Temu were to attract a significant number of sellers. Even if Temu were successful in attracting a substantial number of sellers away from Amazon, it must convince them their products could be sold through its platform at significantly lower costs than on Amazon.

Conversely, having a large user base will enable the app to effectively promote its products among potential customers. Furthermore, it allows companies to easily track sales activity, ensuring their marketing dollars are put towards something valuable.

Last year, its Super Bowl commercial was the most costly advertising pitch made by any brand in the NFL - costing $7 million for a 30-second spot.

Temu's advertising campaign is only the beginning of their efforts to break into the US market, according to Ad Age. They plan to release a series of ads over the course of several months that target American audiences and have also joined forces with an extensive network of suppliers so as to offer competitive prices on various items.

4. It’s Not Amazon

Temu, owned by Chinese e-commerce giant Pinduoduo (formerly known as Pinduoduo), has been making headlines ever since it launched in the United States last September. Since then, the app has rapidly climbed the App Store rankings until becoming the highest-ranking free app on Apple's iOS platform.

With prices on household goods reaching record highs, many Americans are turning to discount retailers like Temu for deals. Temu doesn't just carry clothes - it also carries an extensive selection of home products like furniture, kitchen appliances and gardening tools.

Temu stands out due to its remarkably low prices, which are largely the result of Pinduoduo's supply chain capabilities. By connecting manufacturers directly with customers in China, this company can bypass intermediary costs and offer items at much lower costs than companies who rely on multiple layers of distributors.

Temu's prices are significantly cheaper than those of other e-commerce sites, such as Amazon. The website offers a wide variety of items from leading brands and manufacturers in clothing, electronics, home appliances and pet supplies - all at unbeatably low prices!

Temu offers unbeatably low prices, as well as a comprehensive purchase protection program that guarantees your money back if the order is damaged, does not match what was described online, or doesn't arrive at all. Plus, most items can be returned within 90 days for a full refund.

Temu is not yet a direct rival to Amazon, but it is becoming increasingly popular with those seeking discounts on everyday goods. According to analytics firm Sensor Tower, Temu now boasts more than 10.8 million daily installs in the U.S. alone and is now the fastest-growing discount app in that country.

Although the app has seen success in a highly competitive market, it remains too early to tell whether or not it will be successful. But some things have become abundantly clear so far:

Temu faces a major obstacle in getting users to download its application. The company says they are running ads on social media channels like TikTok, an app popular among young people to create short videos showcasing products, but it remains uncertain whether Temu can sustain such viral growth.