Temu

Temu is a rapidly-growing Chinese e-commerce platform launched in September 2022 by PDD Holdings, the parent company of Pinduoduo, China's discount e-commerce giant. Operating under the tagline "Shop Like a Billionaire," Temu has disrupted global e-commerce through ultra-low prices, aggressive marketing, and direct-from-China shipping. In just three years, Temu expanded from its U.S. launch to over 90 markets worldwide, achieving $70.8 billion in GMV and becoming the second most-used cross-border e-retailer globally after Amazon.

The platform's explosive growth trajectory is unprecedented in e-commerce history. Within two months of launching in the U.S. in 2022, Temu became the top shopping app on both App Store and Google Play, surpassing established players like Amazon, Shein, and Walmart. By Q2 2025, Temu reached 416.5 million monthly active users globally, with 1.0 billion cumulative app downloads and users spending an average of 21 minutes per day browsing the platform—more than competitors like AliExpress, eBay, or Amazon.

Temu's business model centers on connecting consumers directly with Chinese manufacturers, eliminating middlemen to offer products at wholesale prices often under $10 across 600+ categories including fashion, electronics, home goods, beauty, and toys. The platform employs innovative engagement strategies including gamification features, influencer partnerships, and massive marketing investments estimated at $4.3 billion in 2024. However, this rapid expansion has come with significant challenges including regulatory scrutiny in Europe and the U.S., workplace culture controversies, and forced adaptation from the direct-to-China model to local fulfillment following tariff changes.

Despite controversies around labor practices, product safety, and data privacy, Temu's market impact is undeniable. The platform captured approximately 17% of the U.S. e-commerce market by April 2024 and overtook AliExpress as the second most-used cross-border retailer globally in 2025. However, facing heavy tariffs and regulatory challenges, Temu dramatically scaled back U.S. operations in 2025, halting direct shipments from China and transitioning to local seller fulfillment. This strategic pivot represents a major turning point for the company as it adapts to changing geopolitical and regulatory environments while maintaining its value proposition of extreme affordability.