At first glance, it might seem that the site is not serious, as it surprises with products such as “Lenovo original portable speakers” for only 244 pesos or even a “quartz watch for men” for 15 pesos.
However, the history of this app goes back to PDD Holdings, a Chinese conglomerate based in Shanghai. From its beginnings in 2015, it focused on trading in China’s most rural areas before later owning the Pinduoduo and Temu marketplace applications. PDD Holdings is currently listed on Nasdaq.
While Pinduoduo became popular in China for allowing farmers to connect with customers, Temu was founded in Boston, Massachusetts, in 2022, and its name means “Team Up, Price Down” (together we bring prices down), according to the company.
The company ships its products through a global network of suppliers and manufacturers, although origins may vary by product. On the other hand, it works with couriers like UPS, FedEx, and USPS for the delivery of your orders.
According to the company site, the company has a base of 11 million companies, employs 10,000 people worldwide, and processes 61,000 million orders annually, making the market capitalization of this company exceed $100,000 million.
And besides these low prices, part of the platform’s success is also due to its strategy of offering users free products that promote the app on their social networks and manage to attract new users.
The not-so-glamorous side of Temu
The site conveys the feeling of shopping like a “millionaire”, because here you can find expensive products at extremely low prices. However, a Time article said the user experience isn’t necessarily what a luxury brand would offer.
“They don’t deliver when they promise,” Melanie McGovernor told the American media. On the other hand, they shared the experience of Julie Roper Malloy, who said that she ordered her Christmas gifts on this platform and that despite the company’s promise that they would be delivered no later than December 19, this was not the case.
