Temu, an online shopping app that made its debut four months ago, has come strongly out of the blocks and won over consumers with a wide selection of quality products that met their needs and are affordable.
Here’s a quick intro for those who haven’t yet heard of Temu:
- How do you pronounce Temu? Temu is pronounced as tee-moo.
- What does Temu mean? Temu’s name comes from an abbreviation of their motto “Team Up, Price Down.”
- Who owns Temu? Temu is owned by Cayman-based PDD Holdings, a Nasdaq-listed multinational commerce group that is best known for operating Pinduoduo, the sister company of Temu and a successful social commerce platform in one of the most competitive e-commerce industries in the world.
Now that we have the basics covered, let’s dive into the details of how Temu is able to achieve the balancing act of quality and cost, selection, and speed that has won over their early consumers like Rhiannon Thayer, a stay-at-home mother of four.
“I’ve placed $800 in orders and am happy with every one of them. Everything from everyday items at a quarter of the cost to clothes, toys, and decorations,” Thayer said in a review. “Shipping takes about two weeks and the items are of great quality.”
Thayer and Temu’s early consumers have collectively made Temu one of the most downloaded apps in the U.S. in recent months. This initial momentum can be credited to the headstart Temu received from the support of their parent company.
Temu is part of a large, well-run global company
Meeting the criteria of affordability, quality and utility is easier said than done. Anyone who has started a business or worked at a startup knows that getting a business off the ground is devilishly hard. The difficulty is compounded when the industry in question is competitive with established players. It is an uphill task to convince consumers to give the newcomer a try, especially when the incumbents have a proven track record and the financial and operational resources to outmuscle the competition.
First, it helps to be “born” into the right family.
Who Owns Temu?
As mentioned earlier, Temu is owned by Cayman-based PDD Holdings. As a member of the PDD Holdings group, Temu has access to a network of over 11 million established global brands, merchants, manufacturers, and logistics providers that the company has developed over the years. These partners are willing to work with Temu, despite being a newcomer, because of the trust and reliability of the PDD Holdings group. In addition, these partners see Temu as an opportunity to tap into a new market and reach more customers.
As a startup, Temu’s association with PDD Holdings gives it a significant advantage in terms of access to resources and partnerships. This has allowed Temu to quickly expand its product offerings from just a few categories at its launch in September to 29 major categories, and more than 250 subcategories with thousands of new listings added daily.
Temu has also benefited from the operational expertise of its parent company, PDD Holdings. With a track record of serving over 900 million users globally and handling over 200 million parcels per day, PDD Holdings has a proven track record of success. In fact, its impressive growth led Goldman Sachs to label it “the fastest growing internet company in the world.” This expertise has been invaluable to Temu as it works to establish itself in the market and rapidly expand its product offerings.
PDD Holdings also provides Temu with financial resources to support its growth. Temu is strongly backed financially by PDD Holdings. With over $17 billion in revenue and $5.2 billion in profit reported for the 12 months ending September 30, 2022, as well as $17.2 billion in net cash, PDD Holdings has the financial backing to help Temu market itself and expand its reach. This financial support is a valuable asset for a startup like Temu as it works to establish itself in the market and grow its customer base.
How Temu Is An Ethical Company
Temu’s four core values lie behind its success and reflect its aim to be an ethical and socially responsible platform.
Their four core values are:
- Diversity and inclusion
- Social responsibility
Being part of a global e-commerce ecosystem, Temu believes in the value of working with different stakeholders and partners across different markets.
Temu operates as a pure marketplace, meaning that it does not have its own brands and does not compete with sellers for customers on its platform. Instead, the company is focused on helping sellers succeed and encouraging more businesses to participate in the digital economy. By not having its own brands, Temu can provide an unbiased platform for sellers to showcase and sell their products to customers.
Temu has said it is dedicated to meeting the diverse needs and aspirations of all its customers, regardless of their identity or community. Temu also empowers individuals to start their own businesses through its referral program. Students can also get involved and earn money through the campus ambassador program, by sharing their interests and hobbies.
Temu is a safe and reputable site to buy from
Headquartered in Boston, Temu is committed to being honest, ethical, and trustworthy in all of its interactions with its community of small and medium-sized business owners, partners, and customers. The company aims to create a welcoming and supportive environment where everyone can thrive and share their experiences. By fostering a sense of community, Temu aims to build trust and create a platform where all parties can succeed.
Temu has implemented a number of business practices and policies as part of its commitment to social responsibility. These measures include offsetting carbon emissions for every order, safeguarding intellectual property rights, and ensuring the privacy and security of personal information for shoppers on the platform.
Temu believes in diversity
As a core value, diversity is reflected in Temu’s product design and curation. For example, individualized product recommendations are carefully tailored to the needs and preferences of the customer.
In addition to its growing big & tall and curve+plus product categories, Temu’s website and mobile app also feature a range of products to meet the needs of a diverse customer base. As an online shopping platform, Temu not only provides a wide range of products, but also serves as a community where products are recognized, ideas are realized, and needs are met.
With a growing inventory of products from merchants and partners and a focus on inclusivity and diversity, Temu is a welcoming and safe place to shop online. The startup believes that every person is uniquely and wonderfully made, with the potential to become who they want to be.