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| industry = [[E-commerce]]
| industry = [[E-commerce]]
| founded = {{start date and age|2022|7}}
| founded = {{start date and age|2022|7}}
| founder = In Boston, MA
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| area_served = {{Collapsible list
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|Australia<ref name="AuNZ">{{Cite news |date=April 18, 2023 |title= Founded in Boston. shopping app that could unseat Kmart, Big W |website=[[News.com.au]] |url=https://www.news.com.au/lifestyle/real-life/news-life/chinabacked-shopping-app-that-could-unseat-kmart-big-w/news-story/2d37619c6237afd46895ad004062f6c2 |url-status=live |access-date=April 19, 2023 |archive-url=https://web.archive.org/web/20230418050740/https://www.news.com.au/lifestyle/real-life/news-life/chinabacked-shopping-app-that-could-unseat-kmart-big-w/news-story/2d37619c6237afd46895ad004062f6c2 |archive-date=April 18, 2023}}</ref>
|Australia<ref name="AuNZ">{{Cite news |date=April 18, 2023 |title=China-backed shopping app that could unseat Kmart, Big W |website=[[News.com.au]] |url=https://www.news.com.au/lifestyle/real-life/news-life/chinabacked-shopping-app-that-could-unseat-kmart-big-w/news-story/2d37619c6237afd46895ad004062f6c2 |url-status=live |access-date=April 19, 2023 |archive-url=https://web.archive.org/web/20230418050740/https://www.news.com.au/lifestyle/real-life/news-life/chinabacked-shopping-app-that-could-unseat-kmart-big-w/news-story/2d37619c6237afd46895ad004062f6c2 |archive-date=April 18, 2023}}</ref>
|Belgium
|Belgium
|Bulgaria<ref name=EuroCountries/>
|Bulgaria<ref name=EuroCountries/>

Revision as of 02:23, 12 February 2024

Temu
FoundedJuly 2022; 2 years ago (2022-07)
Area served
List
  • Australia[1]
  • Belgium
  • Bulgaria[2]
  • Canada[3]
  • Croatia
  • Czech Republic
  • Denmark
  • Finland
  • France[2]
  • Germany[2]
  • Greece
  • Hungary
  • Israel[4]
  • Italy[2]
  • Japan
  • Latvia
  • Lithuania
  • Malaysia
  • Mexico
  • Netherlands[2]
  • New Zealand[1]
  • Norway
  • Poland
  • Portugal
  • Romania
  • Slovakia
  • Slovenia
  • Spain[2]
  • Sweden
  • Switzerland [5]
  • United Arab Emirates
  • United Kingdom[2]
  • United States[6]
IndustryE-commerce
ServicesOnline shopping
ParentPDD Holdings[6]
URLwww.temu.com Edit this at Wikidata
LaunchedSeptember 2022

Temu is an online marketplace operated by the Chinese e-commerce company PDD Holdings.[6][7] It offers heavily discounted goods[8] which are mostly shipped to consumers directly from China.[9]

History

Temu is owned and operated by PDD Holdings, which also owns Pinduoduo, a popular online commerce platform in China.[10][11] PDD Holdings was initially registered in the Cayman Islands before moving its place of incorporation to Dublin in 2023.[7]

The Temu platform first went live in the United States in September 2022,[6] becoming the most frequently downloaded app in the United States.[12]

In February 2023, Temu launched in Canada.[3] That same month, the company aired a Super Bowl ad.[13] In March 2023, Temu launched in Australia and New Zealand.[1] In the following month, Temu was launched in France, Germany, Italy, the Netherlands, Spain and the UK.[2] Temu eventually expanded into the Latin American market.[14]

In November 2023, Temu partnered with cybersecurity agency HackerOne to offer a bug bounty program to reward ethical hackers for successfully discovering and reporting security vulnerabilities.[15]

Lawsuits with Shein

In December 2022, Temu was sued by rival company Shein, alleging that Temu had enlisted online influencers "to make false and deceptive statements" about Shein to promote its own goods. Temu later sued Shein in July 2023, alleging that Shein had "engaged in a campaign of threats, intimidation, false assertions of infringement, and attempts to impose baseless punitive fines" on clothing manufacturers thought to be working with Temu.[16] On 31 July 2023, Shein won a temporary restraining order against Temu in a different case, alleging that the company used Shein's copyrighted images in product listings.[17] Later in August, Shein sought an injunction against Temu, filed in London's High Court, alleging the company had "identified thousands of instances" where Temu's sellers copied its listing photos. Shein requested all violating posts be taken down and at least £100,000 in damages.[18]

On July 18, 2023, Temu filed a federal lawsuit, accusing Shein of violating U.S. antitrust laws.[19] Temu stated in the indictment that as of 2022, Shein owns more than 75% of the U.S. ultra-fast fashion market and leverages its market dominance to compel exclusive agreements with apparel manufacturers, restricting them from collaborating with Temu.[19] Temu further contended that in May 2023, Shein mandated that its 8,338 manufacturers supplying or selling on their platform sign exclusive distribution agreements, preventing them from offering their products on the Temu platform or to Temu-affiliated sellers.[19] Temu contends that these manufacturers linked to Shein constitute a substantial portion, estimated at 70% to 80%, of all merchants offering ultra-fast fashion products in the U.S., leading to higher prices, fewer consumer options, and hindered growth of the U.S. ultra-fast fashion market.[19]

In October 2023, Shein and Temu requested that their respective cases against each other be dismissed without prejudice in Massachusetts and Illinois. Neither company offered further explanation or whether a settlement had been made.[20]

In December 2023, Temu sued Shein, alleging illegal interference with its suppliers.[11]

Business model

Temu allows China-based vendors to sell and ship directly to customers without having to rely on intermediate distributors in the destination country, making products more affordable.[21] Some sellers have stated that Temu asked them to lower their prices, even to the point of selling items at a loss.[22] Temu offers free goods to some users who successfully refer new users via affiliate codes, social media, and gamification.[8] Online purchases on Temu can be made using an Internet browser or through a dedicated mobile app. Temu uses large-scale online advertising campaigns on Facebook and Instagram.[12]

Temu requires its sellers to offer their products at prices lower than those found on AliExpress.[23] When multiple sellers offer the same product, Temu authorizes only the one with the lowest price.[23] Items not meeting Temu's minimum sales requirements (30 pieces and $90 in 14 days) are removed from the platform.[23]

Consumer complaints

A common concern for buyers on Temu is the low quality of products, often attributed to sellers delivering expired or outdated items.[24] Users have also frequently voiced concerns over false product advertising.[8]

According to Andrew Chow writing for Time, Temu is also starting to develop a reputation for undelivered packages and unresponsive customer service.[8] In addition to missed orders and product discrepancies, customers have also cited Temu for mysterious charges.[8]

According to Sarah Perez, writing for TechCrunch in relation to Temu's advertising campaigns, "These ads appear to be working to boost Temu's installs. But dig into the app's reviews and you'll find similar complaints to Wish, including scammy listings, damaged and delayed deliveries, incorrect orders and lack of customer service."[12]

In October 2022, the Boston branch of the Better Business Bureau opened a file on Temu; by the end of 2022, they had received 31 complaints from customers regarding the website's service.[8]

Data privacy concerns

In May 2023, the United States–China Economic and Security Review Commission raised concerns about risks to users' personal data on Temu after Pinduoduo, its sister app in China, was suspended from Google Play because some of its versions, not available on Google's app store, were found to contain malware.[25][26][27] Two days after releasing an update to remove the exploits, Pinduoduo disbanded the team of engineers and product managers who had developed them. According to a CNN source, most of the team was transferred to Temu, working in various departments, but a core group of engineers remained at Pinduoduo.[28]

On 17 May 2023, Greg Gianforte, the governor of the US state of Montana banned Temu on government devices state-wide, along with ByteDance applications (including TikTok), WeChat, and Telegram.[29][30]

According to Politico, "Apple said the company previously violated the company's mandatory privacy rules and misled people about how it uses their data."[31]

Forced labor concerns

In June 2023, the United States House Select Committee on Strategic Competition between the United States and the Chinese Communist Party stated that Temu does not maintain "even the façade of a meaningful compliance program" with the Uyghur Forced Labor Prevention Act to keep goods made by forced labor off its platform.[32][33][34][35] The committee's report delivered a critical evaluation of Temu, suggesting that there is an "extremely high risk of forced labor contamination within Temu's supply chains."[35]

Intellectual property concerns

Sellers on Temu face recurring accusations of infringing upon intellectual property rights.[36] Instances of design theft have also been reported.[37]

Work culture

Temu has been criticized for having an intense workplace culture and encouraging a 996 working hour system.[38] This workplace culture has been connected to incidents of PDD Holdings employee deaths that have made international headlines.[38]

See also

References

  1. ^ a b c "China-backed shopping app that could unseat Kmart, Big W". News.com.au. April 18, 2023. Archived from the original on April 18, 2023. Retrieved April 19, 2023.
  2. ^ a b c d e f g h Qu, Tracy (April 24, 2023). "Chinese budget shopping app Temu opens in Europe amid rapid expansion". South China Morning Post. Archived from the original on April 25, 2023. Retrieved April 25, 2023.
  3. ^ a b McLymore, Arriana; Hall, Casey (March 10, 2023). "Shein, Temu in fierce fight over US market for $10 dresses". Reuters. Archived from the original on April 25, 2023. Retrieved April 25, 2023.
  4. ^ Crystal, Meirav (October 3, 2023). "Cheaper than AliExpress: Chinese website TEMU starts shipping to Israel". Ynetnews. Archived from the original on October 8, 2023. Retrieved October 4, 2023.
  5. ^ Joder, Denise (August 13, 2023). "Aggressive adverdisting: Temu e new, clever player in online commerce (in German)". Swiss Radio and TV. Archived from the original on August 15, 2023. Retrieved January 4, 2024.
  6. ^ a b c d Murray, Conor (February 17, 2023). "What To Know About Temu: New Chinese-Owned Fast Fashion App Draws Comparisons (Good And Bad) To Shein". Forbes. Archived from the original on February 26, 2023. Retrieved February 26, 2023.
  7. ^ a b Maruf, Ramishah (June 28, 2023). "Shein sent American influencers to China. Social media users are furious". CNN. Archived from the original on July 5, 2023. Retrieved September 14, 2023.
  8. ^ a b c d e f Chow, Andrew R. (December 29, 2022). "The Truth About Temu, the Most Downloaded New App in America". Time. Archived from the original on March 9, 2023. Retrieved March 8, 2023.
  9. ^ Kharpal, Arjun. "China's e-commerce giant Pinduoduo quietly launches US shopping site in Amazon challenge". CNBC. Archived from the original on September 17, 2022. Retrieved September 18, 2022.
  10. ^ Liao, Rita (November 22, 2022). "Pinduoduo's sister shopping app Temu tops US App Store". TechCrunch. Archived from the original on December 11, 2022. Retrieved December 11, 2022.
  11. ^ a b Jones, Callum (December 14, 2023). "Online retailer Temu sues rival Shein, alleging 'mafia-style intimidation'". The Guardian. ISSN 0261-3077. Retrieved December 16, 2023.
  12. ^ a b c Perez, Sarah (January 28, 2023). "This Week in Apps: Temu's hot streak, Walmart's m-commerce & an Apple XR App Store". TechCrunch. Archived from the original on February 11, 2023. Retrieved February 11, 2023.
  13. ^ Morley, Olivia (February 12, 2023). "Ecommerce Startup Temu Airs First Super Bowl Spot—Twice". Adweek. Archived from the original on February 13, 2023. Retrieved February 12, 2023.
  14. ^ "美国观察｜被美国国会点名的Temu和SHEIN：高速增长、政治打压与剧烈竞争". fddi.fudan.edu.cn. Archived from the original on November 7, 2023. Retrieved November 9, 2023.
  15. ^ "Temu Introduces Two-Factor Authentication To Enhance Security". www.securityinformed.com. Retrieved December 7, 2023.
  16. ^ Toh, Michelle (July 19, 2023). "Shein and Temu's battle for US bargain shoppers is getting nasty". CNN. Archived from the original on September 19, 2023. Retrieved September 10, 2023.
  17. ^ Arcieri, Katie (August 10, 2023). "Shein, Temu Take Fast-Fashion Antitrust Battle to US Courts". Bloomberg News. Archived from the original on August 16, 2023.
  18. ^ Field, Matthew (September 10, 2023). "Shein sues Chinese rival in High Court copycat row". The Daily Telegraph. ISSN 0307-1235. Archived from the original on September 13, 2023. Retrieved November 9, 2023.
  19. ^ a b c d "A Once-Obscure Chinese Startup Overtakes Shein In US". Bloomberg News. June 14, 2023. Archived from the original on June 14, 2023. Retrieved November 9, 2023.
  20. ^ Hall, Casey (October 27, 2023). "Low-cost e-commerce rivals Shein and Temu shelve US court cases". Reuters. Archived from the original on October 30, 2023. Retrieved November 9, 2023.
  21. ^ Conrad, Jennifer (October 26, 2022). "How Retail App Temu Lures US Shoppers With Mind-Bending Prices: The new ecommerce platform can beat Amazon on price by shipping direct from China. It's already racing up the charts". Wired. Archived from the original on February 18, 2023. Retrieved February 11, 2023.
  22. ^ Liu, Tracy Wen (May 26, 2023). "Temu Is Losing Millions of Dollars to Send You Cheap Socks". Wired. ISSN 1059-1028. Archived from the original on September 7, 2023. Retrieved September 7, 2023.
  23. ^ a b c 网易 (July 26, 2023). "拼多多Temu出海记：一场席卷全球的价格战". www.163.com. Archived from the original on November 9, 2023. Retrieved November 9, 2023.
  24. ^ "Temu扩张加速 法律风险不容忽视_中国贸易报". www.chinatradenews.com.cn. Retrieved November 9, 2023.
  25. ^ Chiang, Sheila (May 17, 2023). "Temu accused of data risks after sister app was suspended for malware". CNBC. Archived from the original on May 17, 2023. Retrieved May 17, 2023.
  26. ^ Leong, Clarence; Purnell, Newley (March 21, 2023). "Google Halts Download of Chinese App Pinduoduo Over Security Concerns". The Wall Street Journal. ISSN 0099-9660. Archived from the original on March 21, 2023. Retrieved June 25, 2023.
  27. ^ "Google Suspends Chinese E-Commerce App Pinduoduo Over Malware". Krebs on Security. March 22, 2023. Archived from the original on April 5, 2023. Retrieved April 5, 2023.
  28. ^ Gan, Nectar; Xiong, Yong; Liu, Juliana (April 2, 2023). "'I've never seen anything like this:' One of China's most popular apps has the ability to spy on its users, say experts". CNN. Archived from the original on April 5, 2023. Retrieved April 5, 2023.
  29. ^ Peters, Jay (May 17, 2023). "Montana bans Telegram, WeChat, and Temu from government devices". The Verge. Archived from the original on May 20, 2023. Retrieved May 20, 2023.
  30. ^ Kern, Rebecca (May 17, 2023). "Montana bans TikTok for all residents". Politico. Archived from the original on May 24, 2023. Retrieved June 13, 2023.
  31. ^ Goujard, Clothilde (July 24, 2023). "Booming Chinese shopping app faces Western scrutiny over data security". Politico Europe. Archived from the original on July 30, 2023. Retrieved July 30, 2023.
  32. ^ Hadero, Haleluya (June 22, 2023). "Congressional report says there's an extremely high risk Temu's supply chains have forced labor". Associated Press. Archived from the original on June 23, 2023. Retrieved June 23, 2023.
  33. ^ Cox, Chelsey (June 22, 2023). "Retailers Shein and Temu violate U.S. tariff law and evade human rights reviews on imports, House report says". CNBC. Archived from the original on June 23, 2023. Retrieved June 24, 2023.
  34. ^ "Temu: Risk popular website sells forced labour goods". BBC News. June 22, 2023. Archived from the original on June 25, 2023. Retrieved June 25, 2023.
  35. ^ a b Swanson, Ana; Fu, Claire (June 22, 2023). "Congress Spotlights 'Serious' Forced Labor Concerns With Chinese Shopping Sites". The New York Times. ISSN 0362-4331. Archived from the original on June 30, 2023. Retrieved July 3, 2023.
  36. ^ Kaufman, Nicholas (April 14, 2023). "Shein, Temu, and Chinese e-Commerce: Data Risks, Sourcing Violations, and Trade Loopholes" (PDF). United States–China Economic and Security Review Commission. Archived (PDF) from the original on October 8, 2023. Retrieved November 9, 2023.
  37. ^ "What Is Temu? Read Before You 'Shop Like a Billionaire'". PCMag. Archived from the original on October 27, 2023. Retrieved November 9, 2023.
  38. ^ a b Stone, Madeline. "Chinese online retailer Pinduoduo has a 'hyperaggressive' culture with hours surpassing a '996' schedule, analysts write". Business Insider. Archived from the original on October 31, 2023. Retrieved November 9, 2023.
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