Confused about all the Temu commercials airing during this year’s Super Bowl? You’re not alone.
Searches for e-commerce company Temu – including the phrase “what is Temu” – increased after the company aired five adverts during and shortly after the match, each showing colorful animated characters buying products for as little as 99 cents. A happy song played in the background while the characters danced on the screen, promising viewers the chance to “shop like a billionaire.”
“The ad marks the culmination of a Super Bowl campaign that featured more than $15 million in coupons and giveaways,” Temu said in a statement cited by CNN.
A quick search of the platform’s website reveals some jaw-dropping deals: $8 sneakers; Airpod lookalikes for $18; a $4 Stanley Cup dupe.
But are the site’s low prices worth it? Here’s what you need to know about Temu.
What is Temu?
Temu is an online discount marketplace that offers everything from t-shirts to garden hoses. What do all of its products have in common? Low price. The company says items are shipped directly from suppliers and manufacturers, which helps keep costs down.
Temu launched in the United States in September 2022 and had more than 50 million monthly active users in the United States as of January, according to market intelligence firm Sensor Tower. This represents an increase of almost 300% year-on-year.
The company operates similarly to other e-commerce companies like Amazon, but buyers can expect longer shipping times since goods are often shipped from China and other parts of the world.
Despite the long shipping time and the seemingly questionable quality of some products (Temu’s Better Business Bureau rating is 2.5 stars out of 5), Temu’s app is among the most downloaded in the world and the United States. United.
“Temu has completely captivated consumers over the last year,” according to a note from Sensor Tower.
Driven by a “flashy” user interface and in-app games that promote discounts, the company said Temu had “dominated consumer attention” compared to its competitors. Sensor Tower found that Temu users spent an average of 23 minutes per week on the app in the fourth quarter, compared to 18 minutes on Amazon and 22 minutes on eBay.
“Temu’s value positioning, gamification of its app, increased ad spend, broad assortment and strong vendor relationships are what we believe are driving the company’s growth,” the note said from Sensor Tower.
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What is the parent company of Temu?
Temu was founded in Boston, Massachusetts in 2022. Its parent company is PDD Holdings Inc., formerly Pinduoduo Inc., headquartered in Shanghai.
PDD stock price jumped 3.2% on Monday, closing the day at $131.57.
Is buying from Temu safe?
PDD Holdings also owns Pinduoduo, a Chinese e-commerce company accused of using code to bypass cell phone security settings to spy on other apps, read private messages and change settings.
PDD rejected claims that its app contained malicious code.
Is Temu stealing your information?
Temu’s website states that the company collects various data, including:
- Contact information such as email address and telephone number.
- Purchase and search history.
- Location data and IP addresses.
- Social media profiles (if entered by the user).
- Data from third party sources.
A class action lawsuit was filed last year accusing Temu of violating its customers’ privacy rights by collecting private data with “unscrupulous” methods, and cybersecurity experts have warned that the use of The application involves risks.
In an emailed statement, Temu says the company collects information to provide and improve its products and services, and emphasizes that it is subject to “extensive” regulatory oversight as a Nasdaq-listed company with a market capitalization of 170 billion dollars.
“At Temu, we prioritize privacy and are transparent about our data practices,” the statement said.
Does Temu use forced labor?
Temu was accused of circumventing a U.S. ban on products made in China’s western Xinjiang province, according to a 2023 report from Ultra Information Solutions, a global supply chain auditing company.
The United States has banned the import of products from that region, citing abuses against Xinjiang’s mostly Muslim Uyghur population.
Temu says these claims are “totally unfounded”.
“Our current standards and practices do not differ from those of major U.S. e-commerce platforms, such as Amazon, eBay and Etsy,” the company said in an emailed statement.
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