Temu gains popularity overseas

China's cross-border e-commerce platform Temu is taking the world by storm with its user base reaching 91 percent of Amazon's in August, recent statistics showed.

In a survey covering 84 countries and regions, over 60 percent of users in various areas showed a preference for Temu, particularly in Europe, where 28 countries' users expressed a preference for Temu compared with other e-commerce platforms, Japanese news outlet Nikkei said, citing data from analysis firm Sensor Tower.

The Chinese platform's user base may surpass that of Amazon by the end of the year, Nikkei said.

Experts attributed this success to Temu's low-price strategy as it sells a large quantity of nonbranded goods and minimizes intermediary links in the supply chain to control price hikes. It also leverages local tax mechanisms for low-priced goods to manage costs. Upon arrival in foreign markets, it adopts a "direct delivery "model for consumers, reducing inventory management fees and further lowering prices.

They said Temu's triumph is a microcosm of the rapid expansion of Chinese e-commerce on the global stage.

Temu operates through the temu.com website and Temu app, owned by Chinese e-commerce company PDD Holdings.

"Temu's user base is approaching that of Amazon, showcasing strong growth momentum, primarily driven by its low-price strategy, efficient logistics and diverse product range. In the future, Temu needs to continuously enhance user experience, strengthen brand trust and enhance global market competitiveness," said Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation's e-commerce research institute.

Divided by region, recent data from Sensor Tower said Temu was tops among shopping apps on iOS devices in the US in the third quarter, with downloads exceeding 8 million.

Temu's expansion in Southeast Asia is also accelerating, with recent launches in Vietnam and Brunei. With these additions, Temu now operates in five markets in Southeast Asia.

Temu's global growth rate is remarkable. As reported by media outlet 36Kr, Temu's gross merchandise volume reached around $20 billion in the first half, surpassing its full-year 2023 sales. By July this year, Temu had expanded to over 70 countries and regions.

Hong said that Temu's success overseas mirrors China's cross-border e-commerce expansion. He noted that government policy support, market diversification and increasing brand influence — along with the rise of emerging markets and technological innovation — are presenting new opportunities for cross-border e-commerce platforms.

"However, challenges such as intensified market competition, high logistics costs, intellectual property protections and cultural differences still persist. In the future, Chinese cross-border e-commerce platforms will need to focus more on branding and technological innovation, deepening international cooperation, and achieving higher-quality global development," Hong added.