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Agenda-setting intelligence, analysis and advice for the global fashion community.

A Reality Check for Temu

Growth is slowing, competition is getting intense and regulators have the fast-fashion retailer in their sights. But despite investor panic over its prospects, Temu remains an e-commerce powerhouse — one that Western competitors must continue to watch.
Temu, Shein and Amazon apps on a phone.
Temu occupies 0.73 percent of total US online market share as of August, according to Consumer Edge. That’s just barely above its market share as of November 2023, at 0.71 percent. (Shutterstock)

During its rapid ascent to the top of the global fast-fashion food chain, Temu looked like the perfect hedge for its Chinese owner, PDD Holdings, against a weak domestic economy.

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Further Reading

Temu’s Ad Blitz Is Working

Spending data shows millions of consumers are shopping on the Chinese app after seeing its ubiquitous marketing. Worryingly for competitors, customers appear to like what they’re seeing.

About the author
Cathaleen Chen
Cathaleen Chen

Cathaleen Chen is Retail Editor at The Business of Fashion. She is based in New York and drives BoF’s coverage of the retail and direct-to-consumer sectors.

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