Temu was created in July 2022 by PDD Holdings, a multinational commerce group based in the Cayman Islands. It operates as an online marketplace connecting consumers directly with suppliers, offering a variety of products at very low prices.
Temu’s business model leverages low-cost manufacturing and labor in China to keep costs and product pricing minimal. This allows them to offer a broad range of products, from clothing and beauty items to home appliances and pet supplies, across 29 different categories.
Since its launch, Temu quickly expanded from the U.S. to several other countries, including Canada, Australia, New Zealand, Europe, and parts of Asia. By January 2024, it had entered its 49th market, South Africa.
Temu has also gained significant popularity through social media campaigns and Super Bowl ads. They offer free goods to users who promote the app and refer new users, which has helped them attract a large user base.
However, Temu has faced some controversies related to undelivered packages, incorrect orders, and unresponsive customer service. There are also concerns over data privacy and product quality, making it essential for shoppers to be cautious. Despite these issues, Temu remains a legitimate platform offering a wide range of products.