Dimensionality reduction strike! Temu monthly active users are catching up with Korean local platforms

Having just arrived in South Korea a few months ago , discount e-commerce platform Temu has clearly disrupted the dominance of local players in the online retail sector .

According to data from data.ai, a global app market analysis service provider, Temu topped the list in South Korea with 399,000 downloads between September 25 and October 9 .

The Disney + app ranked second with 377,000 downloads. In recent months, the streaming app has captured the hearts of many users with its original series " Moving . "

It is reported that Korean industry observers have noticed the rapid growth of Chinese e-commerce applications in the Korean online shopping market.

Data from app analytics firm IGAWorks showed that based on data from Android smartphones alone , AliExpress 's monthly active users in South Korea reached 2.78 million in September.

In comparison, South Korea’s two largest e-commerce platforms, TMON and WeMakePrice, have 2.3 million and 2.11 million monthly active users .

Temu was officially launched in South Korea in July this year , and in just a few months it has attracted nearly 1 million users.

Industry insiders believe that the rapid growth of the Temu platform in South Korea is related to the heavily discounted products they offer.

It is understood that Temu mainly purchases and sells a range of products such as clothing, jewelry, beauty products and household items directly from domestic sellers at super low prices.

Temu , operated by e-commerce giant Pinduoduo, allows suppliers to sell and ship directly to customers without having to rely on middle distributors in the destination country, thereby reducing intermediary costs and allowing consumers to buy truly cheap things.

In addition to South Korea, Temu has become one of the most frequently downloaded shopping apps in the United States since its launch in September 2022, according to data.ai.

US business news outlet CNBC recently reported that the Temu app has become one of the country’s largest e-commerce platforms, with downloads surging 50 times from 600,000 to 30 million in just one quarter.

In contrast, Amazon's downloads fell off a cliff, dropping 40% in a year.

Additionally, Temu is increasing advertising spending to further attract U.S. consumers, with marketing spending estimated at $2 billion this year.

Temu

South Korea

E-commerce