Chinese discount ecommerce app Temu has taken the United States and United Kingdom by storm, as the newest Chinese-based challenger aiming to saturate the market with products at under half the price of similar items on Amazon and other ecommerce stores.
Temu, which is owned by Chinese ecommerce giant Pinduoduo, launched in the US in 2022 and in select European countries in 2023, offering a megastore of almost every conceivable item at a fraction of the cost. Like Wish and other discount stores, Temu offers lots of discount codes and freebies to entice users to spend.
It was the most downloaded app in the US for the last few months of 2022 and has remained there for almost every day in 2023. At first, Temu’s hold of the top spot on Apple’s App Store was considered smart ASO engineering, but it looks like millions of people have tried out the app and bought items from it.
Most discussions online question the legitimacy of the app, with the very low prices and rather long delivery times reminiscent of Wish in its early days. Temu is as close to a direct link with Chinese manufacturers as is possible, cutting out several of the middlemen involved in shipping these items from China and importing them to Amazon warehouses.
Without all that baggage, a knife sharpener or bathroom mat that would cost $10-15 on Amazon can be bought for under $2 on Temu.
Similar to Wish, there are issues with quality control and customer support. Once an item has been purchased, it’s almost impossible to get a refund outside of the item not arriving. There are also no major brands on Temu, although there are quite a few rip-offs of top fashion and makeup brands.
According to Bloomberg, Temu surpassed Shein in users in the United States in May 2023, with over 70 million people accessing the app. It has started heavily promoting the app in the UK, Germany, and France, and there has been a similar increase in downloads following the start of the promotion.
We have collected data and statistics on Temu. Read on below to find out more.
Temu Key Statistics
- Temu’s monthly gross merchandise volume hit $1 billion in June 2023
- Temu had over 70 million active users in the United States in May 2023
- Over 40% of Temu downloads have come from the US, the UK is Temu’s second largest market
Retail App Report 2024
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Temu Overview
| Title 1 | Title 2 |
|---|---|
| Launch date | September 2022 |
| HQ | Cayman Islands |
| People | Chen Lei (Pinduoduo CEO, co-founder) |
| Business type | Subsidiary |
| Industry | Ecommerce |
| Owner | Pinduoduo |
Temu Gross Merchandise Volume
Temu’s gross merchandise volume, which is total sales before expenses, surged from $3 million in September 2022 to $1 billion in June 2023.
Temu Monthly Gross Merchandise Volume 2022 to 2023 ($mm)
Temu Gross Merchandise Volume 2022 to 2023 ($mm)
| Date | Gross merchandize volume ($mm) |
|---|---|
| 2022 | 290 |
| H1 2023 | 2896 |
Source: YipitData
Pinduoduo Revenue
Temu’s parent company, Pinduoduo, generated $19 billion in 2022. Temu is still a very small part of the company’s portfolio.
Pinduoduo annual revenue 2017 to 2022 ($bn)
| Year | Revenue ($bn) |
|---|---|
| 2017 | 0.26 |
| 2018 | 1.94 |
| 2019 | 4.33 |
| 2020 | 8.79 |
| 2021 | 14.53 |
| 2022 | 19.19 |
Source: Company data
Temu Users
Temu surpassed 100 million active users in the United States in May 2023. It has been a rapid climb for the app, which had less than 10 million in October 2022.
Temu users in the United States 2022 to 2023 (mm)
| Date | Users (mm) |
|---|---|
| October 2022 | 5.8 |
| January 2023 | 36.7 |
| April 2023 | 73.3 |
Source: Bloomberg Second Measure
Temu Downloads
Temu surpassed 100 million downloads in 2023, with the majority of these coming from the United States.
Temu cumulative downloads 2022 to 2023 (mm)
| Date | Downloads (mm) |
|---|---|
| 2022 | 15 |
| July 2023 | 130 |
| November 2023 | 250 |
Source: AppMagic
Temu Downloads by Country
The United States was still the largest market for Temu in May 2023, accounting for over 40% of total downloads.
Temu downloads by country May 2023 (%)
Temu Shoppers by Age
Temu’s most frequent shoppers are in the 59 and older age bracket, with 18 to 26 year olds the least likely to shop on the app.
Temu US shopper average transaction size and frequency 2024 (%)
| Age | Average transaction | Transactions in 2023 |
|---|---|---|
| 18 to 26 | $26 | 2.6 |
| 27 to 42 | $28 | 3.3 |
| 43 to 58 | $28 | 4.5 |
| 59 and older | $27 | 5.6 |
Source: Attain, via Bloomberg
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