Investors are still very interested in Temu. However, the latest AlphaWise and 3P data shows: 1) the number of American households shopping on Temu is declining, 2) net purchasing intentions are lower than other retailers, and 3) internet traffic and app usage are still gradually declining.
Core views:
The data shows that Temu's momentum in the US has further slowed since we conducted an in-depth study in October. According to our latest data, the number of households shopping on Temu continues to drop (now around 20% lower than in September 2023), and future purchase intentions are lower than most other discounts/e-commerce businesses in our survey. Although Temu still has millions of monthly app downloads, US web traffic and app usage data also shows that usage has been declining/gradually slowing down since October, even during the holiday season. App download speeds also seem to be stagnating now.
Investors are still very interested in Temu. Temu's rapid popularity (we think about 15% of American consumers are shopping on Temu; US GMV is about $8-10 billion in 2023), discounted prices (more than 50% lower than competitors), and massive marketing expenses (according to reports, marketing spending soared 1000% from January to November 2023; Super Bowl commercials are already planned) all highlight Temu's disruptive impact.
Temu in 2024...