In just 17 days after the launch, Temu beat Instagram, WhatsApp, Snapcat and Shein in the Apple App Store in the USA., According to apptopia data shared with CNBC.
Stefani Reynolds | AFP | Getty images
The Chinese Retail Retainee Apple Put on the application store after the radical tariffs of President Donald Trump about the commercial partners.
Temu, owned by Chinese electronic commerce giant PDD HoldingsHe had been in an online advertising bombardment in recent years in an attempt to attract American buyers hungry for agreements to his site. With a mountain range on television ads also on Facebook, the company published clothes, jewelry, household items and electronics at Bargain’s basement prices.
The strategy was so effective that Temu headed the Apple list of the most downloaded free applications in the US. During the last two years. The TeMU downloads in Apple’s App Store fall 62% in recent days, according to the similar data, a digital data and analysis company. Ads for 50 cents and $ 5 t -shirts that used to cover Google Search results and Facebook Food has almost disappeared.
President Trump’s tariffs have altered the Temu business model, together with their advertising strategy. The packages sent from China are now subject to a tariff rate of 145%, while the Minimis disposal, which allows shipments worth less than $ 800 to enter the tax free of taxes, will disappear on May 2.
Temu and Shein, a fast fashion market with links with China, plan to increase their prices in response to tariffs. Both companies published notices on their websites in recent days that warned that prices will increase at the end of next week.
“” To maintain the products you love without compromising quality, we will make price adjustments as of April 25, 2025. “
Sellers in the Amazon third parties, many of whom get their products from China, have said they are considering increasing prices, since they consider greater rates costs. Many companies in Tiktok Shop, the market for the application of social networks, also have Chinese manufacturers for their articles.
Amazon launched a competitor to TeMU last November, called Amazon Haul, which has articles of less than $ 20 that are in much of China.
The Temu application is no. 69 In a list of the best free applications in the US, after constantly classifying in Top 10, according to Tower sensor data. Shein is currently in 42, below 15 last month. The PDD shares that trade in the US has fallen 22% this month, compared to the 6% fall of Nasdaq. Shein has privately.
The rival retailers have risen sub-riding the top of the APP Store ranks, including the Beijing wholesaler in Beijing, Dhgate, who went up to the application of free iPhone No. 2 in the US Alibaba‘S Taobao, who held the number 7. Bloomberg on Tuesday that the promotion of viral videos that their cheap products have stimulated Frenzy’s discharge.
A separate analysis of SimilarWeb showed the traffic paid of Temu, or the search, exhibition and advertising on social networks that led to its website, has fallen by 77% since April 11. Temu remunerated traffic exceeded traffic not previously paid to its website for 2 1/2 times, Ben Parkes, an analyst of consumer goods and a retail analyst in similarweb, said in an interview.
The Marketing Tinuiti firm discovered that 20% of US Google Purchase Buying Prints. UU. They were bought by Temu on April 5. A week later, that number had fallen to zero. In comparison, Shein’s impressions remained at 17% on April 12, while 60% of the impressions were bought by Amazon.
Representatives of Temu and Shein did not immediately respond to comments requests.
Temu was previously one of Goal The largest advertisers, but seems to have drastically reduced their expenses on the platform. Until Wednesday, Temu is publishing six ads in Meta Platforms in the USA., Shows a review of the Meta Ads Library. Temu is running approximately 27,000 advertisements in the world sites and applications, partly in Europe and the United Kingdom
That could be problematic for the finishing advertising business, which has a significant impulse of the retail retail. The advertising analyst Brian Wieer in Madison and Wall estimated that more than $ 7 billion of the $ 132 billion goal in advertising revenues in 2023 come from China. It is scheduled to inform the results of the first quarter on April 30.
Juozas Kaziuken electronic commerce analyst said that he hopes that Temu turns on his ads in the US.
“It does not mean that the use of Temu has decreased as significantly as the application did,” Kaziukenas said in an email. “But it means that the acquisition of new users has gone.”
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