PDD Holdings’ US shopping app Temu is planning an expansion into Canada, just months after beginning operations in America, according to the Late Post.
The impending foray into Canada follows the US debut of the Boston, Massachusetts-based Temu in September. Available as mobile apps and website, Temu has wowed American consumers with a wide selection of products at what Wired magazine calls “mind-bending” prices.
Temu is part of PDD Holdings, a multinational commerce conglomerate that manages a portfolio of businesses, including the social commerce site Pinduoduo. Temu has said that it can offer wholesale prices typically reserved for bulk purchases to retail buyers because of its access to the sourcing and logistics network run by PDD Holdings.
This 11-million-strong roster of suppliers and manufacturers includes top-notch producers that have decades of experience serving global brands. By connecting these manufacturers directly to consumers, Temu drives down the distribution costs and passes on the savings to the shoppers. Temu also benefits from the logistical expertise of PDD Holdings, which handled 61 billion orders in 2021.
Since its debut, Temu has attracted millions of value-seeking consumers with this “wholesale prices for retail buyers” strategy. The platform offers a selection of merchandise across over 100 product categories, from women’s and men’s clothing to household goods and electronics.
“Temu is the type of app you open when you feel like buying something, with nothing specific in mind. And it’s so cheap, you end up shopping,” said Connie Chan, a general partner with Andreesen Horowitz, the venture capital firm, on Twitter. At the same time, “the products are curated, the baseline quality meets a certain bar.”
Even so, Temu is likely to face intense competition going into the year-end holiday season. Retailers are planning massive markdowns to clear out unsold inventory amid concerns that consumers are tightening their belts due to inflation and a pessimistic economic outlook.
For now, Temu is seeing some initial success and gaining early converts like Felix Wang in Stamford, Connecticut. The managing director of a risk management firm took to Twitter to express his enthusiasm for Temu. “My wifey is super happy with her Temu purchases – good quality and on time…our 3rd haul in the past month,” he wrote in a tweet.