Introduction to Temu's Business Model
Temu has taken the eCommerce world by storm with its unique approach to online shopping. Launched in 2022 by PDD Holdings, Temu has quickly become a major player in the market.
Temu's business model is centered around offering a wide range of low-cost products, primarily sourced from China, to Western consumers. This strategy has drawn comparisons to platforms like Shein, Wish, and AliExpress. However, Temu distinguishes itself with a highly engaging shopping experience that combines gamification, social buying, and aggressive marketing tactics.
The platform's rapid growth is evident in its gross merchandise volume (GMV), which skyrocketed from $290 million in 2022 to $14 billion in 2023. Projections suggest this growth will continue, with GMV expected to reach $29.5 billion in 2024 and $41 billion in 2025.