Temu’s Affordable Ecommerce Is Making Its Way to Canada

By Greg Grzesiak Greg Grzesiak has been verified by Muck Rack's editorial team
Published on February 11, 2023

Temu will begin shipping to Canada in February, making it the first country, after the US, where its services are available, according to a statement on Twitter. Founded in Boston in September 2022, Temu has made it a mission to provide customers with quality goods at affordable prices. It operates an online marketplace featuring 29 major product categories, selling everything from clothing and beauty products to home improvement tools and gardening supplies.

Temu’s discounted products and constant bargains have drawn in a large number of savvy consumers, leading to its meteoric rise in the US app charts. A report by TechCrunch, citing Sensor Tower, shows that the Temu app has been the top downloaded app in the US since the start of the year, with an estimated 19 million lifetime installs. Temu made it into the top 10 downloaded shopping apps in the US for the whole of 2022, despite not existing for eight months of last year, according to Apptopia.

Temu is entering the Canadian market at a time when consumers are reporting increased spending on necessities and reducing spending on non-essential items due to financial pressure from inflation and rising interest rates. According to a recent survey conducted by the central bank, more than half of allrespondents do not anticipate their wages keeping pace with inflation. Additionally, an increasing number of consumers are delaying significant purchases.

 Many consumers will welcome a break and a bargain. There has been extensive coverage of Temu’s unbeatable low prices, with various media outlets describing them as “mind-bending,” “ridiculously low,” and a “lifeline” for financially strapped consumers. Temu, whose name comes from its motto, “team up, price down,” works with suppliers and consumers to create economies of scale to drive down costs for manufacturers and achieve wholesale-like prices for buyers, a win-win.

Temu is owned and backed by PDD Holdings Inc., a Nasdaq-listed multinational commerce group with a market value of $120 billion, or about the combined value of Target and Dollar General. Temu has been able to jumpstart its business and quickly expand its range of products and number of suppliers while ensuring reliable deliveries by tapping on PDD’s extensive network of over 11 million merchants and shipping partners.

Many of the suppliers on Temu are manufacturers and have the most cost-efficient production setups supplying global brands, wholesalers and retailers. By getting them on board, Temu is able to deliver direct-from-factory prices, cutting out layers of middlemen and passing on the cost savings to the consumers.

Judging by the comments on app stores, Temu can anticipate a similarly positive reception in Canada as it received in the US. Several users have left comments inquiring about Temu’s availability in Canada.

By Greg Grzesiak Greg Grzesiak has been verified by Muck Rack's editorial team

Greg Grzesiak is an Entrepreneur-In-Residence and Columnist at Grit Daily. As CEO of Grzesiak Growth LLC, Greg dedicates his time to helping CEOs influencers and entrepreneurs make the appearances that will grow their following in their reach globally. Over the years he has built strong partnerships with high profile educators and influencers in Youtube and traditional finance space. Greg is a University of Florida graduate with years of experience in marketing and journalism.

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