Chinese group-buying company Pinduoduo has just launched its new online shopping platform in the U.S., the Temu app, its first foray into another market. The website is called Temu and is inspired by Shein's business model so that you can find all kinds of items.
Temu, in its beta version, is offering everything from clothing and household products to pet supplies at meager prices. On the website, you can find dresses for $6 or slippers for $10.
Temu will be selling products from China, so it will take 7 to 15 business days to ship products, and it will cost $2.99 for orders under $49. In addition, the website explains that "it is essential to note that you may see longer delivery times than you are used to on other e-commerce websites.
This is because items that may come from another country or must be bundled or packaged with other items of similar size." Returns indicate that they are free.
Being a beta version, categories still need to have subcategories, and some have very few products.
To attract customers, the platform has launched a bargain campaign, offering a 30% off coupon to consumers. A much-needed strategy, as one of the main challenges it will face, is to make itself known in the market and build a brand reputation to compete with Amazon, the country's leading marketplace.
Pinduoduo's intentions to enter the U.S. market became known last week when Chinese media shared the information. The reasons for this action were concerns about inflation, the situation with the Chinese government, and the intense competition from the Asian market. Despite this, Pindudo has remained one of the fastest-growing companies in recent years;, in the second quarter of 2022, it increased its revenue by 36%, unlike one of its main competitors, Alibaba.
Meanwhile, Alibaba Group is preparing the launch of Lazada in Europe to continue conquering other markets and be able to stem losses.
Unfortunately for Pinduoduo, Google has recently decided to ban Pinduoduo app from its popular app marketplace Google Play.
Several experts identified the presence of malware in Pinduoduo's application that exploited vulnerabilities in Android operating systems. According to internal company sources, the software was used to spy on users and competitors, allegedly to increase sales.
"We hadn't seen such an application trying to escalate its privileges to access things it shouldn't have access to," says Mikko Hyppönen, research director at WithSecure, a Finnish cybersecurity firm.
"This is very unusual, and it's pretty damning for Pinduoduo."
Malware, short for malicious software, refers to any program developed to steal data or interfere with computer systems and mobile devices.
The evidence of sophisticated malware in the Pinduoduo app comes amid intense scrutiny of Chinese-developed apps, such as TikTok, over concerns about data security.
Some U.S. lawmakers are pushing for a nationwide ban on the famous short video app, whose CEO, Shou Chew, was grilled by Congress for five hours last week about his dealings with the Chinese government.
The revelations are also likely to draw more attention to Temu, Pinduoduo's international sister app, which tops download charts in the United States and is expanding rapidly in other Western markets. Both are owned by PDD, a multinational company with roots in China and listed on Nasdaq.
Although Temu has not been implicated, Pinduoduo's alleged actions may cast a shadow over the global expansion of its sister app.
There is no evidence that Pinduoduo has sent data to the Chinese government. But because Beijing enjoys a great deal of influence over companies under its jurisdiction, U.S. lawmakers are concerned that any company operating in China could be forced to cooperate in a wide range of security activities.
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