This time last year, hardly anyone in the U.S. knew what Temu was. Now, the bargain shopping app backed by Chinese tech company PDD Holdings Inc. is on a tear, with sales exceeding rival Shein in the U.S. in May, according to Bloomberg Second Measure. Temu is an ecommerce marketplace that has been Apple Inc’s top iOS app in America during most days in 2023, according to mobile app researcher Apptopia.

‍
Temu’s initial North American sales target was to report at least a single day of gross merchandise value topping Shein by September 2023, to mark the anniversary of entering the U.S. market. However, Temu has already surpassed this goal, with spending on the app 20% higher than Shein in May.

‍
Temu is the latest in a slew of Chinese-backed brands seeking to woo price-conscious American shoppers. Despite tension between Beijing and Washington on everything from spying allegations to human rights, along with the U.S.’s desire to shift global supply chains away from what it sees as over-reliance on China, Temu is winning customers with flash sales and bargain-basement prices on everything from kitchenware to shoes.

‍
However, cracking the U.S. won’t be easy. Amazon.com Inc. still dwarfs Chinese brands in the U.S. Consumer spending on the platforms are only a fraction of the western giant, according to Bloomberg Second Measure. Amazon is No. 1 in the Top 1000, which ranks North American web merchants by sales, and No. 3 in the Online Marketplaces database, which ranks the 100 largest global marketplaces.

‍
Analysis by Bloomberg News has revealed that Temu sells products in the U.S. linked to forced labor in China. Long work days — often stretching to more than 12 hours a day and already a source of widespread complaints back in the mainland — are also common to maintain the pace of expansion, according to people familiar with the matter.

Sources: https://www.digitalcommerce360.com/2023/06/14/temu-vs-shein-us-sales/