Tech

How Retail App Temu Lures US Shoppers With Mind-Bending Prices


Price seems almost too good to be true: Lenovo wireless headphones for $3.70, one eyebrow pencil for 59 cents, two outdoors solar lights for $6.39 — all with free shipping. Welcome to Temu, which brings bottomless prices and the frenetic energy of Chinese e-commerce to US shoppers.

Temu Website and Mobile App Launched on September 1, the first US store from Chinese e-commerce giant Pinduoduo. Amazon, eBay and other Western online stores have a lot of goods from Chinese suppliers. Temu’s bargain is an experiment in eliminating the middle man, by allowing Chinese suppliers to sell their products directly to US consumers and ship directly from China instead of building network of warehouses in the United States.

Temu seems to marry Amazon’s “everything store” selection of low prices and social elements created Shein fast fashion successful. Like Shein, Temu features user reviews and photos on its product pages, and it fosters collaboration with influencers. So far, the strategy seems to be working. On October 24, less than eight weeks after its debut, Temu was ranked at number 39 on the list. most downloaded free iPhone apps in the US and ranks 5th among free shopping apps, behind only Amazon, Shein, Walmart and Nike.

Courtesy of Temu

Temu looked ruined when it first came out, but now it’s added thousands of new products every day, the company claims. Rui Ma, an investor and analyst who founded Tech Buzz Chinaa podcast and investor community, says the store has grown in “Chinese speed“—the kind of repetition and rapid growth that Chinese companies are famous for and that American companies may struggle to keep up with. “I think it gives a pretty good customer experience,” she said. “I’ve ordered from there three times already.” Her luggage includes household items and beautiful cheap Lenovo headphones, among Temu’s Top Sellers.

Temu may be artificially tempted right now. It offers free shipping with no minimum purchase and an extensive 30 percent discount, but Pinduoduo may be subsidizing early customers in an effort to attract word of mouth. “The question for investors is, how profitable is this?” Ma said.

Pinduoduo, one of the largest online shopping sites in China, can afford the investment to attract US customers. The company did not respond to requests for interviews, listed on Nasdaq stock exchange in 2018 and report nearly 15 billion dollars in terms of revenue in 2021. In China, Pinduoduo allows companies — including farmers—To sell directly to consumers through a popular mobile application other than those offered by U.S. retailers. It includes games and social components, such as shopping through live streaming. The popular group buying feature allows friends to band together to get products at extremely low prices. But the company’s success in China is built on logistics network of warehouses and delivery partners.

Winning the loyalty of US shoppers, who have more familiar, alternative options will be one of Temu’s biggest challenges, the retail marketing consultant said. Cathy Hotka. Its low prices seem to benefit conversions, but they also come with the risk of loss of revenue due to poor quality and incorrect sizing, she said.

newsofmax

News of max: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button
Immediate Matrix Immediate Maximum