Temu will start operations in Australia and New Zealand on March 13
PDD Holdings subsidiary Temu, the Boston-based budget shopping app operator, will start operations in Australia and New Zealand next Monday, weeks after it achieved record-high sales in the United States.
Temu will roll out in the two Oceania markets on March 13, offering an exemption of commission and deposit fees. According to China Daily, PDD Holdings will provide infrastructure services including warehousing, cross-border logistics and after-sales services for Chinese manufacturers.
Other integrated solutions including language services, product standards, intellectual property rights and legal aid will also be offered.
Temu, launched in the US in September, has since gained popularity among consumers there as it offers a wide selection of merchandise, such as apparel, consumer electronics, jewelry, shoes, bags, cosmetics and baby products at competitive prices. Most are shipped directly from factories or warehouses in China.
According to data analytics firm YipitData, a New York-based market research firm, Temu recorded a gross merchandise volume (GMV) exceeding US$500 million in GMV in the market during its first five months of operatio an reached US$50 million in the week through February 5, just ahead of the airing of its television advertisement during the broadcast of Super Bowl LVII on February 12.
Temu’s latest expansion initiative shows how next-generation Chinese e-commerce apps have become an online retail force in other large consumer markets around the world on the back of their highly competitive pricing strategy, which has challenged more established global shopping platforms such as Amazon.com.
Temu, for example, surpassed Amazon and Walmart to become the most downloaded app in the US since mid-February, according to market tracker Data.ai, which surpassed It was also the most downloaded app in the US in November and December, according to research firm Sensor Tower.
Its rival Shein, which does not sell in China, was reported to be in talks to raise funds to US$3 billion at a reduced valuation of $64 billion earlier this year. The online retailer was seeking to close the fundraising round from existing investors, including Abu Dhabi sovereign wealth fund Mubadala, venture capital group Sequoia China and private equity group General Atlantic.
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