In the last few months, Temu, a shopping app operated by the parent company of Pinduoduo, has risen from obscurity. In September, the marketplace became the No. 1 shopping app in the U.S. App Store. For the past two weeks, it has been the top free app in the U.S.
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The U.S. is the largest market for the app, with more than 5 million installs.
The rapid ascendence of Temu, which is pronounced "tee-moo", is not a big surprise given the generous subsidies it is giving users. There is a wide range of products at Wish's level. Thanks to a well-established supply chain built over the last seven years in China, Temu is able to be so affordable.
Temu works with its global network of suppliers and logistics partners to create quality products for consumers to enjoy the conveniences and comforts of life.
The cheap factory-to-consumer goods offered by Pinduoduo has made it a competitor toAlibaba, but it also has a hook: Gamification. Users are encouraged to play casual games in the app, such as its viral fruit-growing game, and are also encouraged to share deals with friends in exchange for free products. The progress bar on the app shows how many more social shares are required to redeem the gift.
Temu is an app that allows users to join group deals with strangers to get deep discounts on premium items. Temu can't make much money from its deeply subsidized products so it's not sure if it can continue to lock users in when the discounts start to scale back
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