China’s e-commerce giant Pinduoduo launches U.S. shopping site Temu

Chinese e-commerce giant Pinduoduo has been behind its rivals Alibaba and JD.com on the subject of worldwide growth. Now Pinduoduo has launched a U.S. e-commerce site known as Temu.

Rafael Henrique | Sopa Images | Lightrocket | Getty Images

Pinduoduo launched its U.S. on-line shopping site because the Chinese e-commerce giant makes its first main push abroad.

The web site known as Temu, which went on-line Thursday, lists objects throughout various classes together with clothes, jewellery, pet provides and residential and backyard, and will mark a brand new problem to U.S. e-commerce chief Amazon.

Pinduoduo didn’t reply to a request for remark when contacted by CNBC.

Temu marks Pinduoduo’s largest push abroad but because the home Chinese economic system faces various challenges from a resurgence of Covid-19 to an power crunch. That has damage financial development in China and dampened shopper sentiment.

China’s largest know-how corporations from Tencent to Pinduoduo’s e-commerce rivals Alibaba and JD.com proceed to pursue worldwide markets. Pinduoduo, a a lot youthful firm than Alibaba and JD.com, having solely been based in 2015, is behind its rivals on the subject of the abroad push.

Alibaba took a controlling stake in Singapore-based Southeast Asian e-commerce site Lazada in 2016 and has since invested cash within the enterprise to increase its presence within the area. Alibaba additionally has a separate web site known as AliExpress that providers markets like Europe and the U.S.

JD.com in the meantime operates Joybuy.com for worldwide prospects.

Pinduoduo’s Temu is a cross-border e-commerce web site with most merchandise more likely to come from abroad, particularly China. Temu mentioned delivery to the U.S. might take 7-15 enterprise days.

“It’s important to keep in mind that you may see longer delivery times than you’re used to from other e-commerce websites. This is due to the fact that items that may be coming from another country or need to be bundled or packaged with other similar-sized items,” the web site says on the delivery data web page.

Shipping is free for orders over $49.

Pinduoduo might face some challenges in cracking the U.S. market. First it might want to construct model repute versus the likes of Amazon. And it might additionally endure from its comparatively lengthy delivery instances versus the same-day or next-day deliveries Amazon gives by way of its Prime subscription providers.

Temu’s “main challenges will be cultivating trust and awareness among customers,” Jacob Cooke, CEO of WPIC, an e-commerce tech and advertising agency that helps international manufacturers promote in China, instructed CNBC.

There are presently additionally some classes which have only a few merchandise. For instance, the lads’s wristwatch class had simply two merchandise listed.

However, Temu might compete on value. On Thursday, Temu had a 20% low cost provide sitewide. And merchandise look like fairly low cost. For instance, the ladies’s attire listed have been largely underneath $20.

Temu might even have a bonus on account of “existing relationships with low-cost manufacturers in China that maybe haven’t expanded to the U.S. yet,” Cooke mentioned.

Pinduoduo has grown shortly in its seven-year historical past to change into considered one of China’s largest e-commerce corporations. The firm has tended to concentrate on lower-income customers by providing closely discounted merchandise. And it has been specializing in bringing agricultural merchandise onto its platform to distinguish from rivals. The firm is value round $87 billion.

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