Temu Statistics – The Key Facts and Figures (September 2023)

In the tough world of online shopping, where big players dominate, Temu managed to shine in just one year. Once completely off the radar, it’s now making headlines.

What got me curious was not just its rapid rise but the fascinating stats and strategies that made it happen. 

So, join me as I unravel the numbers and secrets that turned Temu into a sensation – I’ve dug around all over the web to get you all the numbers and facts.

That way, you can figure out what makes Temu different and how it’s managed to stand out in the busy world of online shopping.

Let’s get started, shall we?

Temu’s Financial Figures and Growth Over Time

Now, here’s a quick rundown of all the significant ups and downs of Temu’s finances.

By January 2023, things really took off. Temu’s sales shot up to $192 million.

Temu had a GMV as high as $635 million due to Americans spending 20% more on it compared to SHEIN, its direct competitor. (Source: Reuters / Yipitdata)

In Q2 2023, PDD Holdings, Temu’s parent company, reported $7.2 billion in global revenue, marking a 66% increase compared to Q2 2022. This growth was primarily driven by higher revenue from Temu’s online marketing and transaction services. (Source: Bloomberg)

Temu, focusing on low-cost supplies and global markets, faces challenges in logistics and profitability. Unlike SHEIN, it operates at a loss while aggressively expanding, with high customer acquisition costs. (Source: GlobalSources)

In the fourth quarter of FY2022, PDD Holdings, Temu’s parent company, reported strong financial results. Their quarterly revenue reached US$5.8 billion, a 46% increase from the previous year. (Source: TechInAsia)

Operating profit of PDD Holdings surged by 32% to US$1.3 billion, with a Q4 net income of US$1.4 billion, up 38% year-on-year. However, the group’s total operating expenses rose substantially by 57% to US$3.2 billion in the same quarter, with a significant portion directed towards sales and marketing, likely benefiting Temu’s expansion. (Source: TechInAsia)

In the full year, PDD Holdings reported an impressive operating profit of US$4.4 billion, a 341% increase. Their annual revenue reached US$18.9 billion, up 39%, highlighting the strength and profitability of PDD Holdings, with a significant role played by Temu. (Source: TechInAsia)

Temu enticed new users with significant discounts upon its launch, offering incentives like 30% off the first three purchases, free shipping, and a 40% discount for referrals. These promotions have led to an average loss of $30 per order, posing challenges for short-term profitability.  (Source: Technode)

Temu achieved a conversion rate of 10%, significantly higher than the industry average of 2-3%. However, the sustainability of these metrics, particularly a 30-day repurchase rate of 20-35%, was uncertain.  (Source: TechBuzzChina)

Starting with a modest 5.8 million users in October 2022, Temu rapidly expanded to 36.7 million by January 2023 and eventually soared to an impressive 104.2 million by April 2023. (Source: Bloomberg)

Temu’s Founders, Stakeholders, and Ownership Structure

Colin Zheng Huang is the founder of Temu, although he stepped down as the company’s chairman in March 2021, with Lei Chen assuming the role. (Source: Forbes, Marketscreener)

Currently, Colin Zheng Huang retains a substantial ownership stake in Temu, owning nearly 27.87% of PDD Holdings, the parent company of Temu.  (Source: MarketScreener)

Additionally, Tencent Holdings Limited has a 15.49% stake, Quantum Dot Ltd. with 7.331%, and Gaorong Capital Co. Ltd. with 4.628%.  (Source: MarketScreener)

Temu is affiliated with a Parent company, PDD Holdings Inc., previously recognized as Pinduoduo. This eCommerce powerhouse was founded by Colin Huang in 2015. It later moved its headquarters from China to Ireland in May 2023, but still maintains its operations in China and other markets. (Source: Reuters)

Temu’s Products

Temu operates as an online marketplace that connects consumers with a wide range of sellers, manufacturers, and brands across the globe, offering an extensive selection of products across more than 250 categories. (Source: Temu)

Temu’s products, spanning fashion, electronics, household items, and more, are notable for their remarkably competitive prices, often featuring discounts of up to 99%.

Temu Employee Numbers

• Temu has around 501 – 1000 employees. (Source: Similarweb)
• Though there are no officially disclosed numbers about the exact number of people working at Temu, it’s safe to say that many of the 12,992 employees of PDD Holdings also work on it.  (Source: MarketScreener)

Temu’s User Numbers And Their Growth

Temu has achieved rapid user growth in the U.S. within a year, emphasizing customer acquisition over immediate profits. Through a blend of traditional marketing and digital tactics, Temu has attracted over 70 million downloads. (Source: Forbes)

A noteworthy example of its success is Megan Payette, an Illinois resident who has garnered $6,000 worth of free merchandise (including expensive and legitimate things like Switch Consoles) by engaging with the app’s games and referring more than 250 people. (Source: Forbes)

Temu’s strategy involves aggressive marketing campaigns, including a Super Bowl commercial and extensive social media advertising. The app also employs gamification and encourages user referrals with generous bonuses. Temu’s appeal lies in its remarkably low prices, often significantly undercutting competitors like Amazon. (Source: Forbes)

Temu made a splash during the Super Bowl, airing high-cost commercials and introducing a game called ‘Shake & Cheer’ with a $10 million prize pool. This move boosted downloads and Daily Active Users (DAU) by 45% and 20%, respectively. (Source: TechBuzzChina)

Temu managed to lower its customer acquisition costs from $42 to as low as $10-$25 per user. By January 2023, it had 16 million Monthly Active Users and 10 million transacting customers, with a 7-day retention rate of 22%. (Source: TechBuzzChina)

Temu has spent heavily on marketing, setting aside $140 million for advertising in September of last year alone. The company plans to invest over $956.2 million in 2023 to boost the Temu brand. (Source: Technode)

Temu’s popularity can be attributed to its extensive range of low-cost alternatives to popular products. For instance, users can find iPhone clones for as little as $60, Sneaker knockoffs priced at $4.99, and gaming consoles available for $20. These significant discounts on well-known items have contributed significantly to Temu’s appeal. (Source: Temu)

In addition to attractive offers, Temu engages users with coupons, free shipping countdowns, flash sales, and discount wheels. These tactics, alongside its budget-friendly product range, make it a top choice for budget-conscious shoppers.

Since Temu’s inception, it has rapidly gained prominence by offering a wide variety of products at highly competitive prices. It quickly climbed the ranks in the mobile app world, available on both Google Play and the iOS App Store. Notably, Temu’s mobile apps have consistently held the No. 1 spot in daily downloads since late 2022, surpassing industry giants like Amazon, Walmart, Nike, and Shein. (Source: California Business Journal, TechCrunch) 

Temu achieved 50 million app installs within seven months of its September 2022 launch. (Source: Apptopia)

Temu also has a strong social media presence:

Note: Instagram data is potentially not up to date, links appear to be broken or pages seem to have been deleted for unknown reasons.

Temu’s User Demographic

Temu’s user base shows a fairly balanced gender distribution, with females making up 51.93% of users and males accounting for 48.07%. (Source: Similarweb)

The age distribution among Temu’s users indicates that the most prominent age group is between 25-34 years, representing 21.54% of the user base. The following age categories include 35-44 years at 19.33% and 45-54 years at 18.12%. Notably, the platform is less popular among younger individuals, with 18 to 24-year-olds constituting only 12.79% of users. (Source: Similarweb)

Examining referral traffic sources, news and media publishers play a significant role, contributing to 31.68% of referrals. Coupons and rebates also influence traffic, accounting for 8.81% of referrals. (Source: Similarweb)

Temu experiences a substantial monthly traffic volume, boasting a total of 286.6 million visits, indicating a strong online presence and user engagement – that’s half as much of that of AliExpress. (Source: Similarweb)

Temu primarily targets users with annual incomes below $30,000, with three dominant user types: bargain hunters, white-label product enthusiasts, and those seeking personalized recommendations. (Source: TechBuzzChina)

Temu’s Ratings

Temu has a C-plus rating from the Better Business Bureau, which analyzes companies based on reviews and complaints, due to the high number of complaints submitted against it. It’s not accredited by BBB, either. The customers visiting the page have made it rate a total of only 2.53 out of 5. (Source: Better Business Bureau)

Temu has a mixed level of user satisfaction with only a 3.5 rating on Trustpilot. Some customers praise its low prices, large selection, and free shipping, while others complain about long delivery times, poor quality, and bad customer service. (Source: Trustpilot)

Note About The Low Ratings

People have rated the platform like this for the above mentioned reasons, but some of the recent accusations also play a part – the U.S. raised concerns about data risks associated with discount shopping app Temu after Google removed its Chinese sister app, Pinduoduo, due to “malware.” 

Analysts consider Temu less aggressive in data collection compared to Pinduoduo, which sought as many as 83 permissions, including biometric data and Bluetooth access, raising concerns about the necessity of such data for an eCommerce platform. 

Meanwhile, Temu requests 24 permissions, showing a more restrained approach to data access. Importantly, Temu has not been linked to any malicious activity in official versions. (Source: CNBC)

Global Distribution Of Temu

Temu has managed to compete effectively with established players such as Shein and Amazon, solidifying its position as the leading app in Canada. (Source: SimilarWeb’s rankings.)

Temu has broadened its market horizons by entering European countries. The Temu.com website now incorporates France, Germany, Italy, The Netherlands, Spain, and the United Kingdom into its list of accessible locations, joining its existing presence in the United States, Canada, Australia, and New Zealand. (Source: Reuters)

The United States stands as the primary market for Temu, constituting more than 40% of total downloads and boasting over 100 million active users as of May 2023. Following the U.S., the United Kingdom ranks as the second-largest market for Temu. (Source: BusinessOfApps)

Temu’s App user distribution also extends to various European countries, with Germany representing 6.8% of its user base, Italy at 5.0%, Spain making up 4.6%, and France accounting for 6.9%. Additionally, a substantial 27.0% of users are distributed across various other regions. (Source: BusinessOfApps)

Meanwhile, the geographical distribution of Temu’s website (not the app) traffic reveals that the United States is the dominant market, accounting for 37.71% of visitors. Following behind are Germany at 11.71%, the United Kingdom at 7.95%, Italy at 6.86%, and France at 6.32%. Other regions make up the remaining 29.45% of site traffic. (Source: Similarweb)

Final Thoughts

In just one year, Temu has shown tremendous growth, far beyond what I could have imagined. The statistics I’ve discussed today paint a picture of a marketplace with a bright future. 

I can’t help but wonder about Temu’s next steps. With this kind of growth, it’s fascinating to think about what’s in store for this marketplace. What innovations and partnerships might be on the horizon? 

I hope you’ve found these Temu statistics as intriguing and thought-provoking as I have. Whether you’re an experienced entrepreneur or just starting out, there are valuable lessons to be gleaned from Temu’s success. 

Keep an eye out for updates as I continue to track this marketplace’s journey.

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