07/07/2023 (Japan) - Temu, an ultra low-cost e-commerce platform owned by PDD Holdings, has initiated its operations in Japan, marking the company's debut in the Asian market. The platform, a sibling to the Chinese discount e-commerce site Pinduoduo, offers a wide range of products from clothing to electronics and home goods, primarily from Chinese vendors to international customers at extremely competitive prices.
The company's expansion to Japan is confirmed by a drop-down menu on Temu's website. However, Temu and PDD Holdings have not yet commented on this recent development or their future strategies.
Temu's business model has gained significant traction in the West, particularly among consumers grappling with inflation and the cost-of-living crisis. Since its launch in the United States in September of the previous year, the Boston-based platform has extended its reach to 22 additional countries, ranking at or near the top of app download charts in many of these nations.
Vion Zhi Voon Yau, Head of Research at consultancy firm Momentum Works, described Japan as an "attractive, affluent" market for Temu. However, she expressed that it remains to be seen whether Temu can effectively adapt its model and navigate the local nuances of Japan.