In less than two years, Temu has opened 73 markets!

When it comes to Temu, there are many people who love and hate it, especially sellers, who have complicated feelings about this platform. There are countless positive and negative posts on social media platforms. On the other hand, Temu does not seem to respond much to these feedbacks, and is still busy exploring new areas.

In the "BrandZ Top 50 Chinese Global Brands 2024 " list released by Google and Kantar , Temu made it into the top 10 for the first time, ranking eighth and second among e-commerce platforms.

In less than two years since its launch, Temu has covered more than 70 countries and regions around the world, including Asia, Europe, North America, Latin America, Africa and Oceania.

Temu has opened 73 markets

Recently, at the 2024 China Internet Conference, Zhu Zheng, senior vice president and chief development officer of Pinduoduo Group, revealed that since Temu went online, it has penetrated into more than 100 manufacturing industrial belts in Guangdong, Zhejiang, Shandong, Anhui and other places, and promoted high-quality manufacturing products into more than 70 countries and regions including North America, Europe, and Asia.

Specifically, Ennet saw through temu.com that as of the date of publication, it has opened 73 sites around the world .

It was launched in September 2022, and it is still two months away from its second anniversary, but Temu has been unstoppable around the world. The heavy exposure at the "Super Bowl" made it a strong presence. Since then, Temu has been unstoppable. As soon as it landed in multiple markets, it was able to quickly top the application download list and set off a huge wave in the local area.

According to data from Similarweb, by the end of 2023 , Temu 's total monthly visits had reached 467 million . In the same year, the platform's web and mobile traffic increased by more than 700% year-on-year. Among websites with an average monthly visit volume of over 10 million, Temu is second only to Open   AI.

According to the latest data, the total number of visits to temu.com reached 519 million in June, and the average monthly number of visits in the past three months reached 522 million .

Google Trend shows that since its launch, Temu 's global search popularity has continued to rise. The first obvious rising node was in February 2023, when Temu spent 14 million US dollars to run two 30-second advertisements during the US " Super Bowl " .

The $14 million was well spent. Since then, Temu has continued to gain popularity. In 2023 alone , its global search volume increased by 788 % .

On TikTok, there were more than 427 million posts with the hashtag #temu , while the direct topic was viewed more than 11 billion times.

All kinds of data have proved that Temu is very popular around the world. Behind this popularity is the continuous supply and purchase. Earlier, in a report by LatePost , one year after its launch , Temu has been able to send out an average of 1.6 million packages per day. As of October 2023, Temu has recruited 90,000 suppliers in total.

At the consumer level, in an environment where low prices are caught up in the inflation crisis, Temu has taken over the market in one fell swoop. A survey in April this year showed that 34 % of American respondents shopped on Temu at least once a month, surpassing the old e-commerce giant eBay ( 29% ); another survey showed that 52% of Australians had shopped on Temu in the past year, and 56% of them expressed their willingness to shop there again .

Sensor Tower data shows that in the fourth quarter of last year, Temu users' average weekly stay time reached 23 minutes, and user stickiness exceeded Amazon and Walmart , ranking first .

Temu's steps are big, but they do not seem to be blind. At least the data feedback from the market is positive.

Temu is going to generate $48 billion in GMV this year ?

Zheshang Securities once predicted that Temu's global GMV (gross merchandise volume) will reach US$40 billion this year ; Goldman Sachs seems to be more optimistic, raising its forecast from the original US$35 billion to US$45 billion ; HSBC is even better , predicting that Temu 's GMV will grow to US$48 billion this year and increase to US$140 billion by 2027 .

In March this year , Temu's parent company Pinduoduo released its fourth-quarter 2023 performance report, pointing out that Pinduoduo's revenue in Q4 reached 88.9 billion yuan, a year-on-year increase of 123%; net profit was 23.3 billion yuan, a year-on-year increase of 146%.

It is worth noting that Pinduoduo's revenue mainly includes online marketing services and transaction service revenue, among which transaction service revenue soared by 357%. Transaction service revenue mainly includes Temu revenue, Duoduo Maicai commission income and part of the commission of 10 billion subsidies. The most important growth was brought by Temu .

HSBC also reported that Temu contributed 23% of Pinduoduo's revenue in 2023 , a figure that may rise to 43% this year and exceed 50% in 2025 .

Given Temu's current global expansion, the fact that it is no longer dependent on a single market and its traffic is becoming increasingly balanced, this goal does not seem to be too ambitious.

After Temu entered South Korea last year , it has been ranked first in South Korea's shopping APP installation rankings from October of that year to April this year. As of April this year , Temu's monthly active users in South Korea have reached 8.29 million, a month-on-month increase of 42% .

In addition, from January to May this year, the number of packages from Chinese e-commerce platforms such as Temu increased significantly , causing Korean airlines' international cargo volume to surge, setting a record high since 2009.

As early as February this year, Temu 's users in Japan exceeded 15 million .

Outside of Japan and South Korea, Temu's multiple sites have a certain market share in the local area.

The information also reported earlier that Temu hopes to reduce the proportion of GMV in the United States from 60% to 30% this year.

From the data of Similarweb , we can see that the traffic of temu.com is no longer dominated by the United States. In June , the top five traffic source markets of temu.com were Japan (26.15%) , the United States ( 17.56 % ) , Germany ( 6.62 % ) , France ( 4.79 % ) , and Poland ( 4.78 % ) .

Under the new semi-custodial model, it is more difficult for Temu full-custodial sellers

In September 2022 , Temu innovatively launched "full trusteeship", directly leading the cross-border industry to a new model; in March 2024, it innovated "semi-trusteeship" , and within two months , Temu launched this business in 9 markets including the United States, Canada, the United Kingdom, Germany, Italy, and France.

Each time, it has brought about earth-shaking changes in the industry and allowed many cross-border sellers to find new paths for growth.

But at the same time, Temu has also left many areas for criticism. In addition to consumers complaining about the poor quality of the platform's products, conflicts on the seller side are endless, and the old problems include price cutting and deductions.

Many media outlets have previously reported that Temu delayed fines and the fines were five times higher. Some platform sellers were even fined between 100,000 and 200,000 within a month and had no recourse.

The semi-hosting launched this year is seen by fully-hosted sellers as the platform "eliminating" sellers. One seller told Yien.com that " the platform now gives very high traffic to semi-hosted stores, and the homepage is basically green when it opens ."

*Note: Semi-hosted servers have a green “ Local Warehouse ” icon .

Click on the Best Sellers section, and you will see that the proportion of semi-managed products is very high, whether it is the entire time span, the past month, or the past 7 days . As shown in the figure above, only one listing among the top 10 best-selling products is fully managed .

Semi-hosting also has separate columns to provide precise guidance for consumers .

" On the keyword search results page, you will also find semi-managed product listings occupying the front row ," said another fully-managed seller helplessly.

Although most sellers believe that the full-hosting model will not be "killed off" by semi-hosting in the short term , they still feel that their living space is being squeezed again and again, "both traffic and order volume have clearly shown a downward trend."

At the moment, Temu is running at full speed, but it is still a little difficult for the sellers behind the platform to keep up with its pace...

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