Startup e-commerce platform Temu expands to Europe
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Ultra low-cost e-commerce platform Temu, owned by PDD Holdings has started selling to European markets including France, Germany, Italy, The Netherlands, Spain and the United Kingdom.
The Temu.com website now shows all of these markets on its location drop down menu in addition to the United States, Canada, Australia and New Zealand, where it had previously already been available.
PDD Holdings did not immediately respond to Reuters request for comment on the expansion.
Temu, the sister site of Chinese discount e-commerce platform Pinduoduo, has made a big splash since launching in the United States last September, selling shoes, jewelry, beauty accessories and home goods directly from Chinese merchants for very low prices.
It’s a similar cross-border model to the one that has propelled Shein, which ships to more than 150 countries, to become the world’s biggest fast-fashion brand with annual sales of more than $58.5 billion.
Temu, which is headquarted in Boston, saw 19 million US downloads in the first quarter of this year, according to mobile intelligence firm Sensor Tower, which also ranks Temu as the most downloaded app on Apple and Google Play stores in the United States.
The platform’s gross merchandise value – total sales before expenses – grew from $3 million in September to $192 million in January, according to data firm YipitData.
Questions & Answers
Q.Which European countries can now access the Temu e-commerce platform?
Which European countries can now access the Temu e-commerce platform?
Temu has launched its services in several European markets. These include France, Germany, Italy, The Netherlands, Spain, and the United Kingdom. These countries now appear on the Temu.com location drop-down menu.
Q.Where was Temu previously available before its expansion into Europe?
Where was Temu previously available before its expansion into Europe?
Before expanding into Europe, Temu was already available in other international markets. The platform had been selling to customers in the United States, Canada, Australia, and New Zealand. These markets were previously listed on its website.
Q.What is the business model Temu uses to sell products?
What is the business model Temu uses to sell products?
Temu employs a cross-border e-commerce model, similar to Shein. It sells a range of goods, including shoes and home items, directly from Chinese merchants. This allows for very low prices on its offerings.
Q.How quickly did Temu's gross merchandise value increase after its launch?
How quickly did Temu's gross merchandise value increase after its launch?
Temu's gross merchandise value, representing total sales before expenses, saw rapid growth. It increased significantly from $3 million in September to $192 million by January, according to data from YipitData.
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