Temu's revenue rose by nearly 100% last year to £27 billion

PDD recently released the company's 2023 financial report, and it was subsequently reported that Temu may have contributed 23% of PDD's total revenue.

This data comes from a report released by HSBC, which mentioned that Temu contributed 23% of its parent company's total revenue in 2023. This figure is expected to increase to 43% by 2024 and exceed 50% in 2025.

At present, the United States is very important to Temu. It is reported that the US market accounts for 60% of the platform's total sales.

Coincidentally, well-known data analysis Earnest Analytics also released a study on Temu in the United States, revealing Temu's growth from 2022 to 2023.

According to the Earnest Analytics report, Temu's total revenue reached 27 billion pounds (about 34 billion U.S. dollars) in the year ending December 31, 2023, almost doubling from 14.2 billion pounds (about 17.9 billion U.S. dollars) last year. Operating profit also soared to 6.3 billion pounds (about 7.95 billion U.S. dollars), a significant increase of 93% from 3.3 billion pounds (about 4.16 billion U.S. dollars) in 2022.

Of the four quarters in 2023, the fourth quarter saw the strongest growth, with revenue increasing by 123% to £9.7 billion (US$12.24 billion); operating profit soared by 146% to £2.4 billion (US$3.03 billion).

In addition to revenue growth, Temu has also made significant gains in customer loyalty. The latest research from Earnest Analytics shows that more than 28% of shoppers in the United States who shop at Temu will choose to repurchase, surpassing Walmart and Target. The proportion of excess is close to 100%.

It is worth mentioning that although the product prices are extremely competitive, surprisingly, 44% of Temu’s sales come from middle- and high-income people - those with an annual income of more than $130,000.

In addition to being popular among high-income people, many users of other low-price platforms have also turned to Temu, such as Wish. Data shows that 90% of Wish users turned to Temu in January this year.

In addition, 54% of Dollar General users also flocked to Temu. From 2023 to 2024, sales from Dollar General users on the Temu platform increased by 885% year-on-year.

Earnest Analytics also mentioned in the report that Temu is losing money because of its huge investment in marketing and product sales. However, Earnest Analytics also believes that if Temu starts to recruit Western sellers and sell better quality products with higher ASP (Average Selling Price) on the platform, customer loyalty will become Temu's most powerful "weapon". It will use this advantage to become one of the most powerful online e-commerce platforms, bringing greater pressure to the existing market.

However, the latest reports from authoritative foreign media mentioned that Temu is actively adjusting its strategy to reduce its dependence on the U.S. market. The platform's goal is to reduce the share of the U.S. market in total sales to 30% by 2025.

And recently a seller revealed that Temu has launched three new sites: Georgia, Mauritius and Malta, located in Western Europe, Africa and Southern Europe respectively.

With the three newly launched sites, Temu's overseas business now covers seven continents and 53 countries and regions around the world, marking a major breakthrough in its internationalization strategy.

Temu

Site Revenue

£27 billion