Temu Statistics – An Analysis of Their Reach, Performance & Controversies

Kate Sukhanova

from Techreport on 2023-11-24 18:22 (#6GMSP)

The latest Temu statistics are certainly eye-opening - in 2022, the world saw a new player emerging in the fashion ecommerce world in the shape of Chinese provider Temu, which seemingly took the market by storm. Naturally, many people are very curious to learn more about it.

The online marketplace Temu is operated by PDD Holdings, a Chinese company based in Ireland. Its USP is that it offers heavily discounted goods, often shipped from China. The convenience and low prices on offer made Temu the most popular app in 2023 in many countries.

However, the app has already seen its fair share of controversies associated with its practices, from fast fashion to lawsuits and dissatisfied customers.

So, what should marketers be paying attention to when it comes to the Chinese disruptor? Clearly, it has a huge audience, comparable to other large retailers - but who are these consumers? And will the controversies cause Temu to lose its strong market position?

In this guide to Temu statistics, we look to answer these questions and more. Let's dive in.

Key Temu Statistics

In September 2023, the Temu app was downloaded 40.54 million times.
As of October 2023, the total number of Temu app downloads reached almost 235 million, surpassing Amazon Shopping and making it the world's most downloaded marketplace mobile app.
As of September 2023, Temu had 82.4 million US-based users.
As the UK's top shopping app for almost 6 months, Temu has been downloaded over 7.6 million times in Britain.
Generation Z is Temu's biggest audience, making up 35% of Temu's entire user base.
The total revenue of Temu's parent company, PDD Holdings Inc., in 2022 was $18.93 billion, with gross profits reaching almost $14.4 billion.
In May 2023, Temu got 20% more sales than Shein.

Temu Downloads & User Statistics

Launched in September 2022 in the US, Temu took the world by storm, rapidly expanding into Canada, Europe, and Australia. By the end of 2022, it had been downloaded 14.73 million times in the US, surpassing Nike, Fetch, and Etsy.A big factor in Temu's skyrocketing popularity was its 2023 Superbowl advert.

This popularity is what put Temu above its biggest competitor Shein, and seemingly not far behind other major retailers like Amazon. In this section, we'll take a look at Temu's visitors, downloads, and user statistics.

Visitors & Downloads

temu-2.jpg?_t=1700245123

Source: Insider Intelligence

In a little over a year, Temu has become one of the most-visited retail websites in the US. As of July 2023, it had 90.5 million unique monthly visitors - 30 million more than Target. SimilarWeb ranks the Temu website as the 85th most popular website in the world and the 74th most popular website in the US.

In August 2023, the Temu: Shop Like a Billionaire app has been downloaded 38.8 million times worldwide.

In September 2023, the monthly download figure grew to reach 40.54 million, and as of October 2023, the total number of Temu app downloads reached almost 235 million, surpassing Amazon Shopping and making it the world's most-downloaded marketplace mobile app.

It's ranked as the number one marketplace in the App Store and on Google Play in France, Germany, the UK, and the US.

Temu Active Users

Source: Statista

In terms of Temu's active users, GWS estimates the app had 82.4 million US-based consumers using itas of September 2023.That's a significant increase compared to one year earlier when the app only had 4.6 million active US users.

Of course, these figures are nothing compared to the Amazon app's 142 millionmonthly active users. However, Temu's number of active users has surpassed those of Target and eBay.

Regarding user engagement, Temu is second behind Amazon, with an average aggregate daily user engagement time of 448 million minutes. Amazon's cumulative engagement figure is 534 million minutes per day.

However, Temu is leading the way for the average engagement time of individual users, which is 22 minutes spent on the app in a single session. To compare, Amazon's average engagement time per user is 11 minutes, while Shein's is 12 minutes.

Temu Statistics by Region

At present, Temu is available in the US, Canada, Australia, New Zealand, Japan, the UK, France, Spain, Poland, Italy, Portugal, and a number of other European countries. In this section, we'll take a look at regional Temu statistics regarding downloads and popularity.

The Americas

Source: Statista

The Americas are Temu's largest market. The US, Mexico, and Chile have a 42% share of the overall global market of the app.

The US has over 82 million active Temu users - a figure that represents a whooping growth of1266% from September 2022. It's the most popular mobile app in the USoverall and the second-most popular Android app after TikTok.

Other countries are also making the most of Temu's offering, albeit to a lesser extent. For example, in Peru, it's nowhere near as popular as the local shopping app Mirafarma. Peruvian users have downloaded Temu 485,300 times, compared to Mirafarma's 2.5 million.

Europe

TEMU-DOWNLOADS-IN-EUROPE-as-of-2023.jpg?

Like this infographic? Feel free to use it on your website or blog, but please remember to give us credit by linking back totechreport.com/statistics/temu-statisticsin your post.

Despite only having launched in Europe in 2023, Temu is already proving popular in the market. As you can see from the infographic, Spain and the UK have the highest Temu download figures in Europe.

UK consumers, in particular, are getting drawn in by the orange adverts and Temu's gamified interface. A significant reason for their interest in Temu's low prices may be the country's ongoing cost-of-living crisis. As the UK's top shopping app for almost 6 months, Temu has been downloaded over 7.6 million times in Britain.

The situation is similar in the Iberian peninsula. Temu is the most popular marketplace app in Spain, with almost 10 million people having downloaded it - three times more than the second-most popular Spanish marketplace app, Wallapop.

In Portugal, Temu shares the top spot in the list of the most popular free apps with Shein, with 1.95 million downloads to date.

When we go further east in Europe, we see a similar situation. Temu is the most popular free app in Poland, with almost1.1 million downloads to date - almost twice as many as TikTok.

APAC

Even the Land Down Under hasn't been immune to the appeal of Temu. Launched in Australia in April 2023, Temu has quickly gained momentum in the country, as in the UK. As of June 2023, Temu had been downloaded by 9.2 million Australians - only two months after its launch.

Temu Statistics by Demographics

We've explored how Temu has millions of users. But who are their main demographics, and who are their visitors?

In this section, we'll take a look at the main age groups that shop on Temu and the distribution of its users by gender.

Generations

TEMU-USERS-BY-GENERATION-1.jpg?_t=170039

Like this infographic? Feel free to use it on your website or blog, but please remember to give us credit by linking back totechreport.com/statistics/temu-statisticsin your post.

Given Temu's game-like digital interface, its convenient app, and appealing discounts, it's not surprising that the digitally savvy Generation Z is the most represented cohort in its audience, making up 35% of Temu's entire user base.

The app is in the top ten shopping apps that are most popular with millennials and Generation Z, and is only behind Shein, Target, Amazon, and Walmart.

Interestingly enough, though, Generation Z consumers spend the shortest amount of time on Temu, compared to other audiences - only 33 minutes per week on average. An average member of the millennial generation spends as much as 95 minutes on Temu per week, and Generation X members spend 51 minutes per week.

In terms of website visitors, 25-34-year-old consumers make up the biggest section (22%), according to Statista. Older millennials (35-54) follow closely behind with 18.3%. Baby boomers are the least common Temu visitors, making up only 12% of the entire visitor pool.

Gender

temu-4.jpg?_t=1700397745

Source: Statista

Temu is popular among both men and women, with no strong preference from either gender. In terms of Temu website visitors, men are slightly ahead, making up 55% of the entire visitor pool.

Temu Market & Revenue Statistics

Temu's parent company, PDD Holdings Inc., is the seventh-largest company in Ireland by revenue. In this section, we'll take a look at its earnings, market cap, and GMV.

Revenue

PDD-HOLDINGS-INC.-REVENUE-gross-profit-2

Like this infographic? Feel free to use it on your website or blog, but please remember to give us credit by linking back totechreport.com/statistics/temu-statisticsin your post.

Since Temu is a new brand, there's no official information out there yet regarding its impact on the revenue of PDD Holdings. However, it's estimated that in Q2 2023, it contributed some revenue to the company, albeit less than 1%.

In terms of the overall revenue of PDD Holdings, their SEC filings report that their gross profit in 2022 was $14,367.5 million. Their total revenue in 2022 was $18.93 billion. Below, we'll go into more detail about the company's revenue streams across the last three years.

Revenue Breakdown - 2020-2022

Like this infographic? Feel free to use it on your website or blog, but please remember to give us credit by linking back totechreport.com/statistics/temu-statisticsin your post.

According to PDD Holdings' 20-F filing of April 26, 2023, the company had three revenue streams in the period between 2020 and 2022:

Online marketing services
Transaction services
Merchandise sales

Online marketing services make up the lion's share of the company's revenue, amounting to78.7% of overall revenue in 2022. The income from merchandise sales has decreased over the years - in 2021, it amounted to 7.7% of total income, but in 2022 it dropped to 0.1%.

As stated by the company in its filing, Temu didn't have a material impact on PDD Holdings' revenue in 2022. That's not to say, however, that the segment hasn't been doing well in terms of sales. In the next section, we'll take a look at Temu's gross merchandise sales (GMV) in 2022-2023.

Market Cap

temu-5-1200x552.jpg?_t=1700397765

Source: Yahoo! Finance

Temu's governing entity, PDD Holdings, Inc., is a public company that trades on the NASDAQ as PDD. In 2023, its lowest share price was$59.98, which was seen on May 25. Its highest share price was registered on November 15, at$117.06. The company's market cap is at $151.95 billion.

Temu News & Controversies

Despite the impressive statistics, Temu hasn't been free of controversies in its short operation time. We'll delve into some of these controversies now.

Fast Fashion

temu-6.jpg?_t=1700408226

Source: Global Sources

Strictly speaking, Temu doesn't just sell fashion items - its product categories include home, toys, electronics, and other types of consumer goods. However, its increasingly strong position in the fashion industry has seen it surpass the sales of its competitor, Shein - more on them later.

Both Shein and Temu are leading fast fashion retailers, and it's a label that's not entirely positive. The industry is notorious for generating waste and pollution and following questionable labor practices.

Every year, it produces 92 million tonnes of textile waste. The low-quality items are often thrown away after only a season, with an average US consumer throwing away 37 kilos of clothes every year.

The fast fashion industry is also a significant contributor to overconsumption and overspending, as people are tempted to buy large quantities of clothes at a low cost. The low costs often indicate that the companies are not paying their workers a decent wage.

For a long time, Shein was in the lead in the fast fashion market, achieving a 40% share in 2022. However, Temu's fast production speed and huge production volumes, combined with its low prices, allowed the retailer to get 20% more sales than Shein in May 2023.

All of this has brought Temu in for criticism for its environmental impact. The rapid turnover of clothes and other items contributes to increased textile waste, and not enough information is made public about Temu's supply chain and worker compensation.

Shein Lawsuits

Next, we'll look at the Shein vs. Temu lawsuits. Fast fashion is at the heart of these suits - after all, they're operating in the same market for low-cost apparel.

Shein filed the first lawsuit between the two in December 2022, alleging that Temu was encouraging influencers to spread false rumors about Shein on social media and tricking customers into downloading their app. Shein also accused Temu of impersonating their brand on social media.

In July 2023, Temu filed their own suit against Shein, accusing them of colluding with Chinese manufacturers and violating US anti-trust laws. According to the suit, Shein was asking suppliers to sign exclusive agreements, which would prevent them from working with Temu.

At the end of October 2023, Shein and Temu appear to have settled their legal battles in the US courts without prejudice.

However, it remains to be seen whether any other lawsuits will be filed in future between the two. These legal battles offer an insight into today's toxic fast fashion industry and the cutthroat strategies of key players.

Separately, Temu has filed a lawsuit relating to trademark infringement, accusing over 20 domains of falsely impersonating Temu and providing fake discount codes. This seems to be further evidence of how competitive the fast fashion industry is becoming, but it's likely consumers will be the ones getting hurt in the long run.

Customer Experience

Temu might be popular, but that doesn't mean it's immune from customer complaints. A report published by the US-China Economic and Security Review Commission in April 2023 noted that Temu's Better Business Bureau rankings are very low, at 2.5 out of 5.

The BBB has received over 1,200 customer complaints about Temu in only 14 months of operation. Most of these complaints are about product issues and delivery problems.

The report also stated that Temu's parent company, PDD Holdings, Inc., had issues with making employees work excessively, and some protested after workers died in 2021.

Conclusions

Since its launch in September 2022, Temu has seen a meteoric rise in popularity, in no small part thanks to its Super Bowl advert.

The app's playful interface, low prices, and social engagement features have made it particularly popular with Generation Z. Temu is one of the most popular marketplace apps worldwide, particularly in the US and in the UK.

However, the lawsuits launched by and against Temu serve as a stark reminder of the tough battle to reach the top and of just how contentious the retail landscape can be.

Temu is also embroiled in other controversies - both relating to the environment and customers. The fast fashion industry is far from environmentally friendly, and for Temu to continue to grow, it will likely need to address concerns regarding the environment and sustainability.

References:

The post Temu Statistics - An Analysis of Their Reach, Performance & Controversies appeared first on The Tech Report.

Source	RSS or Atom Feed
Feed Location	http://techreport.com/news.rss
Feed Title	Techreport
Feed Link	https://techreport.com/