Market site Temu sees major growth
E-commerce company airs Super Bowl ads
Confused about all of the Temu ads that played during this year’s Super Bowl? You’re not alone.
Searches for e-commerce company Temu – including the phrase “what is Temu” – spiked after the company aired five commercials during and shortly after the game, each showing colorful animated characters purchasing goods for as little as 99 cents. A perky song played in the background as characters danced across the screen, promising viewers the chance to “shop like a billionaire.”
“The commercial marks the highlight of a Super Bowl campaign that featured more than $15 million in coupons and giveaways,” Temu said in a statement cited by CNN.
A quick search on the platform’s website reveals jaw-dropping deals: $8 sneakers; $18 Airpod look-alikes.
But are the site’s low prices worth it? Here’s what to know about Temu.
What is Temu?
Temu is an online discount marketplace that offers everything from Tshirts to garden hoses. The one thing all its products have in common? Low prices. The company says items are shipped directly from suppliers and manufacturers, which helps cut costs.
Temu launched in the U.S. in September 2022 and had more than 50 million monthly U.S. active users as of January, according to market intelligence firm Sensor Tower. That’s up nearly 300% year over year.
The company works similarly to other e-commerce companies like Amazon, but shoppers can expect longer shipping times because goods are often shipped from China and other parts of the world.
Despite the shipping time and reportedly questionable quality of some of the products (Temu’s Better Business Bureau rating sits at 2 1⁄2 out of 5 stars), Temu’s app is among the most downloaded globally and in the U.S.
Driven by a “flashy” user interface and in-app games that promote discounts, the firm said Temu has “dominated consumer attention” compared with its rivals.
Sensor Tower found Temu users spent an average of 23 minutes a week on the app in the fourth quarter, compared with 18 minutes on Amazon and 22 minutes on eBay.
“Temu’s value positioning, the gamification of its app, the increase in ad spend, its vast assortment and its close supplier relationships are what we believe is driving the company’s growth,” according to a note from Sensor Tower.
What is Temu’s parent company?
Its parent company is PDD Holdings Inc., formerly Pinduoduo Inc., which is headquartered in Shanghai.
Is Temu safe to buy from?
PDD Holdings also owns Pinduoduo, a Chinese e-commerce company that has been accused of using code to bypass cellphone security settings to spy on other apps, read private messages and change settings.
PDD has rejected claims that its app contains malicious code.