Hong Kong, Feb 20 (IANS) A new online shopping platform linked to one of China's top retailers has quickly become the most downloaded app in the US, surpassing Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT), CNN reported.
Temu, a Boston-based online retailer that shares the same owner as Chinese social commerce giant Pinduoduo, made its Super Bowl debut on Sunday.
Temu, which runs an online superstore for virtually everything -- from home goods to apparel to electronics -- unveiled a commercial during the game that encouraged consumers to "shop like a billionaire".
The pitch? You don't have to be one, CNN reported.
The surprisingly low prices -- by Western standards, at least -- have drawn comparisons to Shein, the Chinese fast fashion upstart that also offers a wide selection of inexpensive clothing and home goods, and has made significant inroads into markets including the United States.
Shein is considered one of Temu's competitors, along with US-based discount retailer Wish and Alibaba (NYSE:BABA)'s AliExpress, according to Coresight Research, CNN reported.
Temu, pronounced "tee-moo", was launched last year by PDD, its US-listed parent company formerly known as Pinduoduo. The company officially changed its name just this month.
PDD's subsidiary Pinduoduo is one of China's most popular e-commerce platforms with approximately 900 million users. It made its name with a group-buying business model, allowing people to save money by enlisting friends to buy the same item in bulk, CNN reported.
Since its rollout in September, the application has been downloaded 24 million times, racking up more than 11 million monthly active users, according to Sensor Tower.
In the fourth quarter of last year, US app installations for Temu exceeded those for Amazon, Walmart and Target, according to Abe Yousef, a senior insights analyst at the analytics firm Sensor Tower, CNN reported.
"Temu soared to the top of both US app store charts in November, where the app still holds the top position now," he told CNN, referring to iOS and Android mobile app stores.
Yousef said the company had been particularly successful at acquiring new users by offering extremely low prices and in-app flash deals, such as 89 per cent off certain items.
The firm is already eyeing new territory. This month, Temu said on Twitter that it plans to expand to Canada, CNN reported.
--IANS
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