Core Insights - Temu, a cross-border e-commerce platform under Pinduoduo, has rapidly expanded its presence globally since its launch in September 2022, now covering 47 countries and regions [1] - The platform's unique business model focuses on extreme supply chain management and precise marketing strategies, offering consumers "extremely low prices" across a wide range of products [1][2] - Temu's pricing strategy includes significant discounts, with prices for similar products being over 20% lower than Amazon's self-operated items and over 35% lower than third-party sellers [1][5] Business Model and Strategy - Temu operates on a quasi-self-operated model where the platform manages pricing, marketing, and logistics, allowing merchants to focus solely on supplying goods [1][3] - The platform employs a "price racehorse mechanism" to select the lowest supply price products and enforces a policy to delist items with no sales within 14 days, encouraging cost optimization among merchants [1][2] - Temu's product categories have expanded from apparel to 29 categories, including home goods and electronics, with a monthly GMV exceeding $1 billion within just over a year of operation [2] Market Position and Growth Potential - The global e-commerce market is projected to reach $8.15 trillion by 2026, with increasing online penetration, providing a favorable environment for Temu's growth [3] - In the U.S. market, Temu targets cost-conscious consumers, focusing on the mid-to-low-end market segment, which is increasingly dissatisfied with the high prices of traditional platforms like Amazon [3][8] - Temu is expected to evolve from a purely self-operated model to a "self-operated + platform" model, allowing third-party merchants to join and diversify its revenue streams [3] Marketing and User Acquisition - Temu's marketing strategy includes high-frequency, large-scale advertising campaigns, such as the "Shop like a Billionaire" ad during the 2023 Super Bowl, which significantly boosted app downloads [2] - The platform utilizes social media channels like Facebook and TikTok for targeted advertising, combined with various promotional activities to rapidly grow its user base [2][8] Competitive Landscape - Temu's value proposition is centered around providing low-priced, all-category products, with a clear price advantage over competitors like Amazon [5] - A comparison of transaction processes reveals that Temu has a lower merchant entry cost and faster delivery times compared to other platforms, enhancing its competitive edge [5][6]