Connect with us

Tech

PDD-owned Temu’s first-half sales hit US$20 billion, beating 2023 total: report

Published

5 months ago

on

PDD-owned Temu’s first-half sales hit US billion, beating 2023 total: report

International online budget-shopping platform Temu, owned by Chinese e-commerce giant PDD Holdings, saw its gross merchandise value (GMV) surge to about US$20 billion in the first half of this year, according to a Chinese media report, surpassing its overall sales of US$18 billion in 2023.
Apart from showing strong growth from overseas markets, Temu reached the US$20-billion GMV milestone faster than its Chinese-backed rivals Shein and TikTok Shop, according to a report on Tuesday by local media 36Kr.
Temu’s GMV already totalled about US$12 billion in the second quarter, with the United States accounting for around 45 per cent of sales in the same period, the report said. PDD, which also owns mainland Chinese discount retailer Pinduoduo, did not provide a breakdown of Temu’s first-half sales.

Nasdaq-listed PDD did not immediately respond to a request for comment on Tuesday.

PDD Holdings-owned online marketplace Temu initially went live in the United States in September 2022. Photo: Shutterstock
The latest six-month GMV results for Temu showed that recent speculation about waning interest from consumers in the US, as shoppers there were said to prioritise speedy deliveries over Temu’s low-priced-but-slow shipments, might have been exaggerated.

As such, Temu looks to be on track to meet – if not surpass – its projected sales this year. The discount marketplace was targeting a GMV of US$30 billion in 2024, nearly double last year’s total, according to a report last December by Chinese media LatePost.

In February, Temu made a big promotion campaign during the Super Bowl championship game in the US. Apart from offering US$10 million in giveaways, Temu spent tens of millions of dollars for airing its advertisement six times during the game.

16:42

America’s threat to drop trade rule may hurt China, Temu and itself

America’s threat to drop trade rule may hurt China, Temu and itself

TikTok, meanwhile, set a GMV target of US$12 billion to US$13 billion for the US market alone in the second half of this year, following first-half sales that were below expectations, according to a 36Kr report in June.

Fast-fashion platform Shein has forecast its 2025 GMV to reach US$58.5 billion, up from US$22.7 billion in 2022, The Financial Times reported in February.

The EU, which has 27 member states, is said to be drawing up plans to impose customs duties on cheap goods bought from Chinese online retailers including Temu, Shein and AliExpress, according to a report by The Financial Times earlier this month.

The US Customs and Border Protection last month announced a crackdown on multiple customs brokers handling billions of dollars in inexpensive online shopping orders from the likes of Shein and Temu, according to a Reuters report.

Related Topics:
Continue Reading