Flexible cross-border sales models expand financial frontiers

Gen Z favorite

Temu, the cross-border e-commerce platform launched by Chinese online discounter PDD Holdings, is speeding up its expansion into new markets. Launched in the US in September 2022, it has entered more than 70 countries in North America, Europe, Asia and Oceania.

Temu offers a wide selection of merchandise, including apparel, consumer electronics, jewelry, shoes, cosmetics, and baby products with deep discounts and coupons as part of its strategy to attract price-conscious consumers.

Most of the products are shipped directly from factories or warehouses in China.

According to the app analytics firm Appfigures, Temu has gained popularity among Gen Z consumers in the US, amassing an impressive 42 million downloads from users aged 18 to 24 in the first 10 months of 2024 alone. Apple recently confirmed it was the most-downloaded app in the US on its app store.

Chen Lei, chairman and co-CEO of PDD Holdings, said the company hopes to leverage the supply chain capacities it has accumulated in recent years to create a new channel that enables consumers from different countries and regions to directly purchase products from factories, providing more flexible and personalized supply chains and more cost-effective shopping experiences.

The platform provides a variety of services, including logistics, operations, promotional activities, aftersales services and legal affairs, while sellers just need to produce and ensure the quality of products.