From a few weeks to now, the announcements of Temu seem ubiquitous on the internet, displaying incredible offers up to 96% in a wide variety of products, mainly fashion clothing qualified as fast fashion. But what is this online store that started as an agricultural company and now seduces users with just four words: “shop like a billionaire” (Shop like a billionaire)?
This firm of Chinese origin has positioned itself (in record time, by the way) as a competitor to e-commerce giants such as Amazon and Walmart. In the first quarter of 2023, Temu’s revenue soared 58.17%, topping $5.4 billion. Even has surpassed Shein in some areas, for which many They call it ‘the new AliExpress’.
A meteoric and unexpected rise
Temu was launched in the United States only in September 2022 and in just nine months it registered more than 50 million global downloads.. By comparison, it took Shein three years to get those numbers.
His popularity exploded last February, after paying millions of dollars for an advertisement during the Super Bowl LVII. Perhaps that is why they calculate that 60% of users (about 30 million) are residents of the American nation. That gave it the impetus to overtake Shein as the most downloaded app on the Apple Store so far in 2023, it reported. Bloomberg. He also won the title of the favorite shopping app in the United States, above Walmart, Amazon and of course, by Shein.
Since April, Temu has been among the most downloaded applications in the six countries in Europe where it operates, says the digital intelligence firm Sensor Tower.
Now, the very popular (but still mysterious) e-commerce platform arrived in Mexicotempting Internet users with their inconceivably low prices and his infinite catalog. But there are many doubts about Temu.
Where did this new shopping app come from? Is it a legitimate company? Why are its products so cheap? Is it better, the same or worse than Shein? Can it really compete with Amazon, Mercado Libre and the greats of online commerce?
Lots of questions, few answers…
What is Temu, how was it born and who is the owner?
Temu is a e-commerce platform and appa marketplace with more than 100 categories of articles at very low prices. In addition, it constantly offers juicy discounts, offers, promotions, coupons and free shipping.
Its range of products includes from clothes and toys, even makeup, accessories, appliances, tools, furniture and more. Like other similar apps, such as city or Shein itself, its target audience is the Generation Zalthough it adds many followers millennial And till GenX.
Temu was founded in 2015 by Colin Huangis of Chinese origin and currently belongs to the company Pinduoduo Inc. This, in turn, is owned by PDD Holdings, a Shanghai-based conglomerate. After its success in Asia, they decided to launch it in United States, Europe and other countries, including Mexico.
Pinduoduo was born as an e-commerce platform for the agricultural industry, whose objective was to connect farmers and customers. Now he sells all kinds of items and in 2022 it was valued at about 87,000 million dollars. At the end of 2020, for a brief period, managed to surpass Alibaba Group’s AliExpress by number of registered customers in China.
In just over 5 years, Pinduoduo has become the Second largest e-commerce company in Chinasecond only to Alibaba. Listed on the Nasdaq index since 2018 and its market capitalization exceeds 96,000 million dollars.
Why are Shein’s competing products so cheap?
Temu’s extremely low prices arouse both curiosity and disbelief. Many doubt its authenticity or legality, even wondering if they are not merchandise of the worst quality or a scam.
The company claims that can offer such low prices because the products come directly from Chinese manufacturers, suppliers and warehouses, reducing the costs of intermediaries. This means that Temu does not own the items in her catalog, but only a link between buyers and sellers.
Suppliers, in fact, have very little physical inventory and their production depends on various variables. Based on an analysis of trends and customer feedback, thousands of new designs and products are constantly generated. Then, they produce small runs and replenish them (or not) according to sales, adapting to consumer tastes. All with a minimum margin of profit, such as Shein, Aliexpress, Shopee and similar platforms.
In addition, the company is responsible for shipping the items. One advantage that Temu is taking advantage of to conquer the US market is the so-called ‘lagoon of the minimis’ This allows imported packages worth less than $800 (about 13,350 MXN at current exchange rates) to evade import duties and taxes and receive less supervision from US customs.
This is how Temu works in Mexico, is it safe to buy in the new app?
Temu can be accessed from its website or in its app, which is available for download at Google play and app store. Like any online shopping platform, they ask you to register as a user with a email and password; or, with your Google, Facebook or Twitter account.
The platform accepts credit and debit card paymentsvia PayPal, Google Pay either Apple Pay, among others. For now they do not accept cash payments on delivery. Each article specifies the delivery time and shipments are made by sea. Depending on the product, the order it may take 6-20 days to arrive.
On TikTok, hundreds of users have shared their Temu shopping experiences, so we can get an idea of what to expect. Opinions are divided, but tend to be positive. many users have rated their experience as goodensure that what they ordered arrived in time and formand point out that the products are of good quality.
@shoptemu Temu Haul #temu #haul #temuhaul ♬ original sound – Temu
However, several Internet users have reported a bad experience, despite their low prices. Some have complained that does not deliver what it promises and accuse errors in the merchandise they received. That is They asked for one thing and got another. Some others claim that they waited longer than the one that the app marked as the delivery deadline.
Is it safe to buy in Temu from Mexico?
Temu is just as safe as any other shopping app, but certainly at the moment it generates a lot of mistrust.
Users of social networks have indicated that the terms and conditions of the app do not guarantee the quality control, safety, legality or existence of your products. However, Temu has a protection program If you do not receive the item, receive it defective or that is different from what is described on the page.
Despite the misgivings of Mexican consumers, the truth is that it is beginning to sound like competition for the national market.
Enrique Güijosa, director of administration and finance at The Port of Liverpooldenounced in mid-July that both Liverpool as suburbia they are losing ground to Shein and Temu due to unfair competition.
The manager indicated that both ecommerce platforms import items into Mexico duty free, creating an “uneven” terrain“.
“We see a large amount of merchandise, arriving at customers’ homes, without even paying import duties or taxes on the value. And we don’t see this changing.”explained Güijosa in statements quoted by The financial.
“That obviously puts pressure on the Suburbia case, along with the illegal merchandise that has to do with these low border control measures,” he added. “It is unfair, it is not a level playing field, that there is a lot of merchandise entering the country without paying taxes.”
Mairem Del Rio Addicted to watching series and movies, doing (a little) exercise and changing my hair color. I am also a journalist, with more than 16 years of experience and dedicated 100% to digital media since 2011. I have been from a reporter and community manager, to an editor in various media and agencies. My areas of expertise are as diverse as they are contrasting: entertainment, travel, lifestyle, health, business, and finance. Now I am focused on the entrepreneurial ecosystem, cryptocurrencies, NFTs, metaverses and the promising cannabis industry in Mexico.