A new China-linked shopping app has surpassed retail giants Amazon and Walmart to be the most downloaded app in the US.
The e-commerce app, known as Temu and based in Boston, is linked to the same Chinese owner behind the social commerce outfit Pinduoduo. This is marketplace app that allows buyers to share products on third-party social networks such as WeChat and invite followers to form shopping ‘teams’ that can then buy products in build to earn discounts.
Temu made its debut on Super Bowl Sunday with a crafty video ad. Users will be able to buy virtually everything in the superstore, from home goods to electronics and apparel.
One heck of a video ad
Temu’s Super Bowl commercial invited consumers to ‘shop like a billionaire’. The 30-second spot focused on super-low prices that would allow customers to feel like they are splurging without using a lot of money.
“Through the largest stage possible, we want to share with our consumers that they can shop with a sense of freedom because of the price we offer,” a spokesperson of the company told CNN.
Very low prices
Products on the app indeed have eyebrow-raising prices, with a woman’s swimsuit going for just $6.5 and wireless earphones going for $8.50. Eyebrow trimmers are available for only 90 cents. These low prices have drawn comparisons to Shein, another Chinese fast-fashion company that offers a wide variety of inexpensive goods in the United States. Other companies that are competing on price include discount retailer Wish and Alibaba’s AliExpress.
With such an enthusiastic entry, Temu will likely pose a new challenge to existing retail giants. It’ll be interesting to see how users will adopt the platform.
