Many household budgets are being squeezed by rising prices for everything, from cereal to toilet papers. This is causing many people to reconsider making non-essential purchases.
Rae, a single mother of two in Philadelphia at age 27, has had to sacrifice small luxuries, such as buying a dress. However, she is now facing increased expenses like gas and utility bill payments. Temu is an online marketplace that sells a variety of dresses. Most of the dresses are below $10.
Rae explained that Temu has allowed her to cut down on household expenses and yet she does not feel like she is missing out as the prices are so affordable. Rae did not reveal her full identity because she didn’t want her family and friends to know her financial situation.
Temu launched operations in September. They are a sister company to Pinduoduo – a Nasdaq listed company . Pinduoduo has almost 900,000 active users and is one the largest ecommerce platforms. Temu launched its website and mobile applications on September 1st, attracting a huge media coverage.
According to Temu’s website, “No Matter the occasion, You Can Always Count on Temu To Have Just the Right Things to Brighten Your Life and Help You Live the Way That You Want to Live,” the company featured a bright orange logo as well as the slogan “Team-Up, Price Down.”
Temu offers listings for products in a wide range of categories including clothing, household and other items. A casual search of the website revealed listings for a patterned girl’s dress for $3.95, a Halloween-themed necklace and running shoes for 4.99.
The ecommerce site can offer such low prices thanks to its shared global network of suppliers, manufacturers, and distributors as Pinduoduo. According to the company, it works with more than 11 million merchants, manufacturers, and distributors around the globe. Temu’s direct shipping from merchant to consumer saves transportation and storage costs. The cost savings are passed on to the buyers.
The website is offering a limited-time offer of free shipping on all products purchased from temu.com.
Temu is not a coincidence that it chose this time to enter the market with a low-cost, value for money proposition.
Inflation is at a historical high in June. This is due to the rise in food and gas costs. Gallup recently found that most Americans think inflation is causing financial trouble.
From 49% of Americans in January, 56% said rising prices were causing hardships for them and their families. The most severe effects of rising prices were felt by middle-class families, where 63% reported that they faced financial difficulties. This compares to 46% in November. However, even higher-income households are affected by the increase in inflation concerns. In fact, 40% of high earners expressed concern about it, up from 28% last November.
Temu’s timing could be just right, as US households are already in high-stress mode.
You might also consider a gold rhinestone butterfly belt for $1.43 at Temu!
