Temu’s GMV in the US Region Exceeds 20%, Expanding Business in Latin America and Southeast Asia

Compared with the performance doubling approximately every month since March, the growth rate of Pinduoduo‘s overseas e-commerce platform Temu has shown a slight moderation in the past two months. This may be related to Temu controlling traffic.

Before putting traffic into the US market, Temu needs to communicate with the logistics business group in that region beforehand as the platform is concerned that a surge in traffic could lead to issues such as inventory overflow. With various factors combined, Temu has gradually slowed down its expansion speed in the US market in Q3. Relevant data shows that the daily active users (DAU) growth rate of Temu App in August for half a year was 0.5% in the US market. Additionally, Temu is also reducing its revenue proportion from the US market, with reports stating that they hope to decrease it to 30% by 2025.

An industry insider revealed that currently, Temu’s semi-managed GMV in the US accounts for over 20% of the entire site, but it consumes 50% of the total traffic. Some insiders believe that this may squeeze out space for fully managed operations.

Currently, Temu is accelerating its development in Latin America and Southeast Asian markets. Data tested by a third-party institution shows that in Brazil, Temu App’s daily active users increased by over 94 million % in three months up to August; Peru saw growth exceeding 412.6 million % in nearly six months; and the Philippines experienced a growth rate of 1405% within half a year. Another rapidly growing market is Turkey, with a daily active user increase of over 183.1 million % in three months up to August.

SEE ALSO: Temu Officially Announces the Opening of the Market to European Sellers