Temu Launches in US with Rock-Bottom Prices to Challenge Amazon
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Temu, owned by Chinese company PDD Holdings, aims to challenge Amazon's dominance in US e-commerce through rock-bottom prices and a gamified shopping experience.
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Temu takes advantage of excess inventory from Chinese manufacturers and taps into price-sensitive US consumers.
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The company spends billions on advertising to build its brand and acquire users, with 50 million monthly active users.
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Temu's shipping times and product selection could limit its ability to fully duplicate its Chinese success.
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While Temu likely can't immediately match Amazon's convenience and selection, its extreme discounts and promotions make it a threat to nibble at Amazon's market share.