This time last year, hardly anyone in the U.S. knew what Temu was. Now, as American consumers grapple with runaway inflation, the bargain shopping app backed by a Chinese tech company is on a tear, with sales exceeding rival Shein.
Spending on Temu — an e-commerce marketplace backed by China heavyweight PDD Holdings Inc. — was 20% higher than more established fast-fashion retailer Shein in the U.S. in May, according to Bloomberg Second Measure, which analyzes billions of credit and debit card transactions.
This online marketplace with Chinese origins has been Apple Inc’s top iOS app in America during most days in 2023 — based on metrics including downloads, engagement and retention, according to mobile app researcher Apptopia — as flash sales and bargain-basement prices on everything from kitchenware to shoes draw in new customers.
