PDD-owned e-commerce platform Temu expands to Japan

With an aim to replicate its success in the West and tap into the lucrative Japanese market with its rock-bottom prices and wide range of products, Temu, the sister site of Chinese e-commerce platform Pinduoduo has launched in Japan, marking its first foray into the Asian market.

The ultra-low-cost e-commerce platform known for its affordability and accessibility, considers Japan to be an “attractive, affluent” market for Temu. By leveraging its efficient supply chain and direct relationships with Chinese merchants, Temu has managed to bring affordable products to consumers, enabling them to stretch their budgets further.

Previously launched in the United States last September, it has since expanded to 22 other countries including a European expansion to the UK, France, Germany, Italy, the Netherlands, and Spain, sitting at or near the top of app download charts in many of them.

Its ultra-low-cost model for everything from clothing to electronics and home goods has resonated strongly with consumers in the West, especially in the face of rising inflation and a cost-of-living crisis.

According to Bloomberg, Temu surpassed fast-fashion giant, Shein in users in the United States in May 2023, with over 100 million active users in the country. Temu’s gross merchandise volume (GMV) surged from $3 million in September 2022 to $192 million in January 2023 and is estimated to reach over $1 billion monthly GMV by the end of 2023.

Using the same successful cross-border strategy, it aims to replicate this success in its expansion into Japan and potentially other Asian markets in the future.

Now comes the hard part as Temu will need to carve out its own unique position in the Japanese market which is already crowded with many e-commerce options including e-commerce behemoth 'Amazon', 'Rakuten', 'Yahoo! Shopping', and others.