Core Viewpoint - Temu, a Chinese e-commerce platform, is expanding its local shipping services to reduce reliance on cross-border delivery, aiming to adapt to increasing tariffs and protectionist measures globally [1][5][6] Group 1: Expansion and Market Position - Temu has entered approximately 90 countries since its launch in the U.S. in September 2022, with a significant increase in monthly users, surpassing Amazon in December 2024 [1][3] - The "Local-to-Local" service, initiated in March 2024, allows local sellers to offer products from domestic warehouses, covering 16 countries including the U.S., U.K., France, Italy, and Mexico [2][3] - Local products account for over 20% of Temu's gross merchandise volume (GMV) in the U.S., indicating a shift from primarily low-cost Chinese goods to a broader product range [2][3] Group 2: Financial Performance and Challenges - In 2024, Temu's GMV in the U.S. reached $23.2 billion, which is only about 5% of Amazon's GMV, highlighting the challenges in achieving profitability [3] - Pinduoduo, Temu's parent company, reported a 61% year-on-year increase in net profit to 24.9 billion yuan in Q3 2024, but Temu is still considered to be operating at a loss [3][4] Group 3: Competitive Landscape and Regulatory Environment - The competitive landscape is intensifying, with Amazon launching a section for products priced under $20 to counter Temu's low-cost strategy [5] - Regulatory challenges are emerging, including potential tariffs on low-value imports from China and proposed taxes on imports below €150 in the EU, which could impact Temu's pricing strategy [5][6]