[WSJ] Temu Cools on the U.S. After Shelling Out Billions

[papy]

Temu Cools on the U.S. After Shelling Out Billions

One catalyst for the shift is TikTok’s troubles with the U.S. government, the people said. Temu is focusing more on acquiring users in Europe and other countries. As a result, it now expects less than a third of its sales to come from the U.S. this year, compared with 60% last year…

It is a notable strategy shift for a company that in less than two years became the U.S.’s second-most popular shopping app after Amazon.com by monthly users, attracting them with its $5 water dispensers and $3 T-shirts.

[joebcrafts]

They aren’t closing up shop. They’re just focusing on growing elsewhere.
The US customers that use TEMU are still quite hooked on buying junk on TEMU. They’re addicts.
This is just saying that instead of trying to convince the less gullible US customer they’re after the easy targets in the rest of the world now.

[ModernSwitch]

If you sell cheap junk, you can only fool your customers for so long till they are not your customers anymore.

Think about all the people who no longer shop on Etsy because they got burned by an item that was supposed to be handmade but wasn’t.

I’m pretty sure they already have another company name lined up and we will see an “exit” for temu just like wish disappeared.

Since your average consumer is a goldfish, who likes cheap things. They will remember they bought stuff on wish and temu and that it was terrible and low quality but this “insert new company here” will be so different….till it’s not

[lake]

Previous stories about Temu have claimed that they had a lot of apps downloaded. Made a lot of first sales, and had no repeat business in the US.

If I were to postulate, I would assume that the number of new Temu buyers has dropped and will continue to do so.

If I was to further speculate, I would assume that their advertising strategy did not bring them buyers with a steady source of money to buy crap.