Its advertising seems to be everywhere (as of May 2023), but what do you know about Temu, the Chinese bargain-shopping app likened to AliExpress and Wish platforms? They're definitely winning.
What Is Temu App and Is It Really Good?
Have you heard about Temu App? If not, how? We haven't caught a break from Temu advertisements (served by Google) showcasing the discount e-commerce site's offers said to be making waves in the US. Temu has caught the attention of eager bargain shoppers who are wondering if it's too good to be true, and as a result, has quickly rised to the top of the free app charts in the Apple store after speculation of deals (on top of fearmongering concerning its Chinese origins).
What is Temu? Temu is an ultra-low-cost shopping app that originated in China and made its debut in the United States last September, before reaching the UK. It has been likened to other discount e-commerce platforms like Wish and AliExpress, which offer a wide range of products at incredibly low prices. Temu connects consumers directly with Chinese sellers, offering items such as clothing, jewelry, and beauty products; in addition to homeware at rock-bottom prices.
To gain its popularity, Temu has invested heavily in marketing, particularly on social media platforms. You may have come across Temu during your scrolling sessions. The company is said to have placed over 8,000 ads across Meta platforms in 2023 alone, and it even spent a whopping $14 million (£11.2 m) on two Super Bowl advertisements. In addition to traditional marketing methods, Temu relies on influencer marketing, rewarding its affiliates with shopping perks and encouraging users to share the app with friends in exchange for deals.
Who Owns Temu?
Temu is owned by multinational commerce group PDD Holdings, founded by Chinese billionaire Colin Huang, 43. It is the sister site of the Chinese e-commerce platform Pinduoduo, which was valued at $200 billion (£160 bn) in 2021, according to the Financial Times. Huang, briefly ranked the second-richest person in China in 2020, stepped down from his executive roles at Pinduoduo in March 2021.
Despite its popularity, the US government has raised concerns about Temu, along with another Chinese e-commerce platform, Shein. The US-China Economic and Security Review Commission (USCC) published a report last month (April 2023) highlighting "data risks, sourcing violations, and trade loopholes" associated with Temu. The report also mentioned concerns about product quality and copyright infringement due to Temu's lack of affiliation with established brands.
Temu's reputation among customers is mixed. It has received a rating of 2.9 stars on Trustpilot, with 43 percent of reviews giving the platform just one star. Negative reviews often mention issues with product quality and excessive app notifications. On the Better Business Bureau, Temu has a rating of 2.37, and some reviewers have complained about not receiving ordered items or receiving faulty products. The app has accumulated 235 complaints with the Better Business Bureau as of April 2023.
Furthermore, PDD Holdings, the parent company of Temu, has faced allegations from China's Labour Watch of forcing employees to work long hours. Additionally, CNN reported that a Pinduoduo sister-app had sophisticated malware, though Temu itself was not implicated in either accusation.
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