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Chinese e-commerce giant Pinduoduo launches US shopping site Temu

Chinese e-commerce giant Pinduoduo lags behind rivals Alibaba and JD.com when it comes to international expansion. Now Pinduoduo has launched a US e-commerce site called Temu.

Rafael Enrique | Sopa Images | Lightrocket | Getty Images

Pinduoduo launches US online shopping site at a time when the Chinese e-commerce giant is making its first major overseas foray.

The website, called Temu, which went online Thursday, lists products in various categories, including clothing, jewelry, pet supplies, household goods and garden supplies, and is a new addition to US e-commerce leader Amazon. can pose significant challenges.

Pinduoduo did not respond to a request for comment when contacted by CNBC.

Temu marks Pinduoduo’s biggest push abroad as China’s domestic economy faces many challenges from the resurgence of Covid-19 to the energy crisis. weakened one’s psychology.

From Tencent to Pinduoduo’s e-commerce rivals Alibaba and JD.com, China’s biggest tech companies continue to pursue international markets. A much younger company than Alibaba and JD.com, Pinduoduo was only founded in 2015, but has lagged its rivals when it comes to expanding overseas.

Since taking control of Singapore-based Southeast Asian e-commerce site Lazada in 2016, Alibaba has invested money in the business to expand its presence in the region.Alibaba also has another website called AliExpress that serves markets such as Europe and the United States.

Meanwhile, JD.com operates Joybu.com for overseas customers.

Pinduoduo’s Temu is a cross-border e-commerce website, most of the products may come from abroad, especially from China. Temu said he could take 7-15 business days to ship to the US.

“It is important to remember that delivery times may be longer than you are used to on other e-commerce websites. This is due to the fact that it needs to be bundled or packaged with other similar sized items, as stated on the shipping information page of the website.

Free shipping on orders over $49.

Pinduoduo may face some challenges when entering the US market. First, you need to build your brand reputation on something like Amazon. Relatively long shipping times can also be an issue compared to the same or next day delivery that Amazon offers via its Prime subscription service.

“The main challenge for Temu is to foster trust and recognition among customers,” Jacob Cooke, CEO of WPIC, an e-commerce technology and marketing firm that helps foreign brands sell in China, told CNBC. Told.

Some categories currently have very few products. For example, the men’s watches category had only two of his products.

However, Tem can compete on price. On Thursday, Temu offered his 20% discount sitewide. And the product seems pretty cheap. For example, most of the women’s dresses listed were under her $20.

Cook also said that “existing relationships with low-cost Chinese manufacturers that have not yet entered the U.S.” could give Tem an advantage.

Pinduoduo has grown rapidly during its seven-year history to become one of the largest e-commerce companies in China. The company tended to focus on low-income consumers by offering heavily discounted products. It has also focused on incorporating agricultural products into its platform to differentiate itself from its competitors. The company is valued at approximately $87 billion.

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