Chinese-owned discount online marketplace Temu reached half as many weekly active users as the largest US fast fashion brand Shein in only three months according to Earnest’s Vela transaction data.
The Pinduoduo owned newcomer to the US market also achieved relatively high retention, customer growth, and transactions per customer in its months of operation. The total effect is a brand with 4-month cumulative average spend per customer (also known as customer lifetime value) of $232. That surpasses multi-category peer Walmart ($133) and pet lover favorite Chewy ($172) after its first four months in existence. Temu already outstrips Five Below ($31), ULTA ($85), and Bed Bath & Beyond ($117) in terms of customer lifetime value.
Temu is possibly the first significant disruptor to the US online general merchandise category since Amazon, with major implications for entrenched players. Download the full report, Quantifying Temu’s Market Entrance with Credit Card Transaction Data, for more details.
