8 months ago
62 Bargain e-commerce institution Temu has had a whirlwind 2023.
Quietly launching its app successful September 2022, it lone took the institution a fewer weeks to apical app store charts, edging retired Amazon, Walmart and adjacent fast-fashion marque Shein. By February 2023, the 5-month-old institution made its TV debut during Super Bowl LVII, airing 2 commercialized spots totaling an estimated $14 million.
Temu's popularity is mostly owed to its ultra-cheap knockoffs. Users tin get an Apple Watch dupe for $10, Yeezy knockoffs for $4.99 and gaming consoles for $20. On apical of the steep discounts, users are bombarded by coupons, escaped shipping countdowns, flash income and discount wheels.
While connected its look the institution looks to beryllium a Boston-based startup, it is really backed by a well-known sanction successful the Chinese retail space, Pinduoduo.
"China is truly the linchpin successful Temu's strategy," said Neil Saunders, managing manager of GlobalData Retail. "A batch of the products that are sold connected Temu are manufactured successful China. They're shipped straight from China to the U.S. So those labour costs compared to manufacturing successful the U.S. and elsewhere are truly low."
Temu's emergence successful popularity has besides courted scrutiny from the U.S. government, accusing the website of exploiting de minimis shipping rules to undercut U.S. retailers. Under de minimis rules, shipments valued nether $800 are not taxable to work taxes and acquisition minimal customs checks.
Beyond that, a U.S. House committee accused the retailer of violating U.S. import instrumentality by utilizing forced labour to proviso its products.
Temu and Pinduoduo did not respond to CNBC's requests for comment
Watch the video supra to larn what's down Temu's occurrence and what could disrupt the retailer's monolithic maturation successful the U.S.
