Chinese online discounter Pinduoduo has launched the beta version of Temu, a cross-border e-commerce platform targeting the U.S. market, the company’s first overseas destination. The test version of Temu will run till September 15. Eventually, it will help Pinduoduo to expand revenue sources and hedge against the negative impacts of the Covid-19 pandemic, industry experts said. The products sold on Temu include apparel, consumer electronics, jewelry, shoes, bags, cosmetics, baby products and pet supplies. The company did not disclose whether Temu will expand to other overseas markets in the future. Temu will focus on U.S. consumers who are inclined to buy cost-effective commodities. Most accessories and daily necessities are priced at less than USD10. To attract merchants, Temu is offering a series of preferential policies like exemption of registration and commission fees at the initial stage.
Merchants who have registered with Temu are required to send the listed goods to the warehouses of Pinduoduo in Guangzhou, capital of Guangdong province in advance, while the platform will be responsible for e-commerce operations, logistics and sales. An increasing number of Chinese vendors are selling their products globally through cross-border e-commerce platforms.
Founded in 2015, Pinduoduo has broken the dominance of e-commerce players such as Alibaba and JD in the China market and captured the attention of both users and the capital market by adopting a group buying model that encourages users to share their purchases on messaging platforms to get cheaper prices. Chen Lei, Chairman and CEO of Pinduoduo, said the company is exploring new business opportunities, including entering overseas markets. Pinduoduo reported better-than-expected revenue of CNY31.44 billion during the second quarter, an increase of 36% year-on-year, while its net income attributable to ordinary shareholders surged 268% year-on-year to CNY8.9 billion. Chinese cross-border online shopping apps Shein and AliExpress will offer stiff competition, the China Daily reports.
