TEMU occupies 17% of the US retail industry

In just over a year since its launch, Temu has gone from obscurity to a hot topic in the Western market.

According to foreign media reports, as inflation intensifies, more and more American consumers choose Temu to shop to meet their needs. Now Temu has occupied 17% of the US retail market.

It is also believed that with the rapid development of Temu, it will inevitably affect traditional American retail companies such as Amazon, Dollar Tree, and Five Below.

It is reported that Temu provides consumers with a wide range of products including home decoration, pet products, beauty and health products, men's and women's clothing, etc., and these products are very competitive. Compared with the old e-commerce platform Amazon, Temu often offers large discounts, and with Temu's discount purchasing service, consumers can often enjoy greater discounts.

In terms of downloads, Temu has surpassed Amazon, Target, and Walmart to become the number one shopping app on the App Store, with the three companies ranking third, fourth, and eighth respectively. In addition, it is reported that since its launch, Temu has gained 250 million users worldwide, more than half of whom are from the United States. It also ranks second among the most popular shopping apps in the United States.

Therefore, American industry insiders believe that Temu's rapid development will have an impact on other retailers that make a living by offering "low prices". For example, 99 Cents Only Stores has closed 371 chain stores; Dollar Tree, the North American dollar store giant, also recently announced the closure of nearly 1,000 Family Dollar stores to rectify its declining performance.

However, I still believe that there is growth only when there is competition.

Take Amazon as an example. The platform has been working hard to shorten its delivery time to meet users' demand for speed. The industry believes that this move can also allow it to maintain its advantage in the competition with Temu. In addition, Amazon recently announced that it will expand the policy of low-priced clothing commission discounts to Europe, Japan, and Canada from the 15th of next month. In order to catch up with Amazon's delivery speed, Target and Walmart have also been working hard to upgrade warehouses and build new facilities.

Other platforms have also been upgrading or launching new services to better satisfy or attract users. For example, eBay will update its platform's review feedback system, allowing buyers to rate purchased items with stars; Newegg has also launched a new free membership plan Newegg+ after evaluating customer needs and expectations in order to attract new users to register.

Although the development momentum is good, Tmeu has also been improving its services. In order to improve the delivery process in the US market, the market was opened to US warehouses last month; semi-hosting recently opened two new sites in Australia and New Zealand. It is worth mentioning that the number of Temu Marketplace sellers has exceeded 5,000.

Temu

USA