ANALYSIS | The online shopping app that quietly became the most downloaded in the US.

Hong Kong () — A new online shopping platform linked to a major Chinese retailer has quickly become the most downloaded app in the United States, surpassing Amazon and Walmart. Now he’s looking to cash in on his appearance on America’s biggest stage.

Temu, a Boston-based online retailer co-owned with Chinese social commerce giant Pinduoduo, made its Super Bowl debut in 2023.

Temu, an online superstore for just about everything from home goods to clothing and electronics, featured an ad during the game encouraging consumers to “shop like a billionaire.”

The argument? It doesn’t have to be.

“Through the biggest stage possible, we want to share with our consumers that they can shop with a sense of freedom thanks to the price we offer,” a Temu spokesperson told in a statement.

The 30-second ad shows the company’s proposition to users: feel like splurging by buying lots of cheap stuff. A swimsuit for women in Temu costs just US$6.50, while a pair of wireless headphones It is priced at $8.50. A eyebrow trimmer it costs just US$0.90.

These surprisingly low prices — at least by Western standards — have drawn comparisons with Shein, the Chinese fast-fashion company that also offers a wide selection of cheap clothing and housewares, and has made major inroads in markets like USA.

According to Coresight Research, Shein is one of Temu’s competitors, along with US discount retailer Wish and Alibaba’s AliExpress.

climbing positions

Pronounced “ti-mu,” Temu was launched last year by PDD, its US-listed parent company, formerly known as Pinduoduo. The company officially changed name this same month.

Pinduoduo, a subsidiary of PDD, is one of the most popular e-commerce platforms in China, with some 900 million users. He rose to prominence with a group-buying business model, which allows people to save money by bringing friends together to buy the same item in bulk.

In its website, Temu claims that it uses its parent company’s “vast and deep network…built over the years to offer a wide range of quality, affordable products.”

Since its launch in September, the app has been downloaded 24 million times, amassing more than 11 million monthly active users, according to Sensor Tower.

In the fourth quarter of last year, Temu app installs in the US surpassed those of Amazon, Walmart and Target, according to Abe Yousef, a senior analyst at Sensor Tower.

“Temu shot to the top of both US app store charts in November, where the app still holds the top position now,” he told , referring to the iOS and Android mobile app stores. .

Yousef said that the company had been particularly successful in attracting new users by offering extremely low prices and in-app flash deals, such as 89% discounts on certain items.

The company is already exploring new territories. This month, Temu announced on Twitter that plans to expand to Canada.

Too cheap?

Michael Felice, a partner at management consultancy Kearney, says Temu stands out simply for selling products without high profit margins.

“Temu could open up an opportunity in the market where brands have been producing at extremely low cost, and a lot of inflated costs have been passed along the value chain to get a margin,” he told .

“That said, American consumers may not even be ready to accept some of these prices… There’s always the question, ‘Is it too cheap to be good?’

Deborah Weinswig, CEO of Coresight Research, cautioned that it may be too soon to tell if Temu will be able to keep those extremely low prices, free shipping and other perks.

“Temu intends to continue experimenting in marketing and offerings, made possible by its resource-rich parent company,” he wrote in a report.

Its launch, he said, “comes at an opportune time, as consumers seek value amid still high inflation and a certain degree of economic uncertainty.”