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TechCheck+ Will Temu Kill Amazon? How the Chinese Shopping App’s Rapid Growth Could Crack Amazon’s Dominance 10/13/23

TechCheck

CNBC

Disruptors, Cnbc, Investing, Tech, Management, Business, Technology, Faang

4.566 Ratings

🗓️ 13 October 2023

⏱️ 10 minutes

🧾️ Download transcript

Summary

Temu appears unstoppable. Since the Chinese shopping app launched in the U.S. a year ago, it has become the number one e-commerce app in the country, with downloads skyrocketing 50x from 600,000 to 30 million in just one quarter, according to Bernstein analysts. In contrast, Amazon’s downloads have dropped off a cliff, falling 40% in a year. Known for wild discounts and dirt-cheap prices that severely undercut Amazon’s, Temu has ratcheted up its ad spend to infiltrate the American consumer, set to spend an estimate $2 billion in marketing in 2023. This week on Tech Check, we dive how Temu has hit Amazon’s weak spots to take the country by storm.

Transcript

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0:00.0

T-Moo. It's time for another T-Moo Hall. A once little-known Chinese app,

0:08.0

Look what came in the mail! That has become ultra-popular in just a matter of months.

0:14.0

I'm gonna need y'all to stop ordering Taimu shi-shi

0:17.4

by selling the most random items.

0:20.1

Apparently I bought a bubble gun for dirt cheap. this stuff is four dollars its goal infiltrate the American consumer

0:28.1

Now I have two hundred dollars worth of stuff from China. So let's see what I got. It's poured millions into Super Bowl ads.

0:34.0

Download the Tino app and shop like a billionaire.

0:37.0

And gamified shopping with a literal wheel of fortune.

0:40.0

It's meteoric rise now threatening retail giants including Amazon.

0:44.4

It's a threat to everyone including Amazon.

0:47.0

Which in contrast has barely updated its website in a decade.

0:51.0

This week on Tech Check we dive into the app taking the country by Storm Timu

0:55.4

and how it could be the Amazon killer.

0:58.0

Timu has become the most downloaded shopping app in the United States.

1:03.2

Timi seems to have come out of nowhere.

1:05.0

It launched in the US a little more than a year ago,

1:07.6

but already estimates suggest 15% of American consumers shop on the app with more than 56 million monthly

1:15.1

users here in the US and likely to generate 13 billion dollars in gross

1:19.6

merchandise value this year. They've come very quickly as you said zero to three billion GMV in just under and

1:25.0

Dice value this year. They've come very quickly as you said zero to three billion GMV in just under a year. It has shot past other Chinese apps like Sheehan and Tik-Toc and downloads

1:29.0

and has grown so quickly that even Amazon is starting to take notice.

1:33.8

I'm sure you've seen this site, Timu, right?

...

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