Temu records revenue of £27bn in 2023

Category: Marketplaces
Temu shopping app and ultra low prices Temu to allow UK & US retailers on marketplace Temu records revenue of £27bn in 2023

In a remarkable feat, Temu has achieved staggering growth in both revenues and customer loyalty. In the US, new research from Earnest Analytics reveals the meteoric rise of the marketplace.

Temu records

  • Revenue Surge: In the full year ending December 31, 2023, Temu’s total revenues reached an impressive ¥247 billion (£27 billion)—nearly doubling from the previous year’s ¥130 billion (£14.2 billion).
  • Profit Soars: Operating profit for the same period skyrocketed to ¥58 billion (£6.3 billion), marking a remarkable 93% increase from 2022’s ¥30 billion (£3.3 billion).
  • Fourth-Quarter Momentum: In the fourth quarter, revenues surged by an astounding 123% to ¥89 billion (£9.7 billion), while operating profit leaped by 146% to ¥22 billion (£2.4 billion).

Customer Loyalty: A Game-Changer

  1. Second-Time Purchase Rates: New research by Earnest Analytics reveals that over 28% of Temu’s first-time shoppers return for a second purchase.
  2. Outperforming Giants: Temu has outpaced Walmart and Target in this regard, with nearly 100% higher second-time purchase rates.
  3. Astounding Growth:
    • Temu’s sales skyrocketed by 840% between January 2023 and 2024.
    • During the 2023 holiday season, growth exceeded an astonishing 1,100%.
  4. Customer Base Insights:
    • Approximately 18% of US households have shopped at Temu since its launch.
    • Despite competitive pricing, Temu’s US customer base skews middle to high income, with 44% of sales from earners making over $130,000 per year.
    • Over 96% of Temu customers also shop at Walmart and Amazon, while 84% frequent Target.
    • Wish and AliExpress customers are also flocking to Temu.
    • In January 2024, 90% of Wish customers shifted their online discount spending to Temu.
    • 54% of Dollar General customers’ discount wallets now belong to Temu.
    • Sales to Dollar General customers grew an astounding 885% year over year from 2023 to 2024.

Yes, we all know that Temu have invested heavily in marketing and loss leaders, but if they start to recruit Western sellers and better quality higher ASP products, their customer loyalty could see Temu becoming one of the most powerful marketplaces posing a serious threat to incumbents.

3 Responses

  1. Cause it is cheap cheap cheap. Everyone is skint skint skint skint.
    While incumbents are just going up up up in price.

    1. Even if people had more money in their pockets, I’m betting on these platforms, and the other Chinese sellers still win even more sales. Shopping habits have been permanently changed.

      It will need government intervention to level the marketplace.

      1. Also, id rather be in fixed assets than stock to sell on these crap platforms during a recovery.

        UK Marketplaces are all risk and no reward for the majority of real UK business sellers.

        It makes no sense to dump any real investment into being a seller on eBay or Amazon.

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