Temu
PDD Holdings · China
Temu is an online marketplace launched in 2022 by PDD Holdings, the Nasdaq-listed group behind China's Pinduoduo. It sells heavily discounted goods, including a large range of clothing, mostly from Chinese manufacturers. Its rapid growth has made it a direct competitor to Shein and a focus of regulators in the US and EU.
| Launched | 2022 |
|---|---|
| Owner | PDD Holdings |
| Listing of owner | Nasdaq (PDD) |
| Model | Cross-border online marketplace |
| Segment | Value general merchandise including apparel |
| Website | temu.com |
What is Temu?
Temu is a general merchandise marketplace accessible via web and mobile app. Clothing, footwear and accessories are among more than 600 product categories. The platform is owned by PDD Holdings, which describes itself as a multinational commerce group operating a portfolio of businesses; in the US it is run by the subsidiary Whaleco.
History
Temu went live in the United States in September 2022 and quickly expanded to Europe and other markets. Its original slogan, Team Up, Price Down, reflected the group buying approach of Pinduoduo, founded by Colin Huang. By December 2024 the Temu app had overtaken Amazon in global monthly active users, according to Wikipedia's summary of industry data.
In 2025 the US ended the de minimis exemption for low-value imports, and Temu said it would shift US orders to local sellers rather than shipping directly from China. In the EU, the European Commission opened proceedings under the Digital Services Act in 2024 and in 2026 fined Temu €200 million, finding that it had not adequately assessed the risks of illegal products on its platform. Temu said it disagreed with the decision.
Products and positioning
Temu competes almost entirely on price. In fashion it offers unbranded or little-known labels across womenswear, menswear, kidswear, shoes and accessories, positioned below established fast fashion chains.
Business model and distribution
Temu connects manufacturers and sellers directly with consumers, removing intermediate distributors. The model originally relied on direct shipping from China and has broadened through a local seller programme launched in 2024 that lets merchants fulfil orders from within customers' countries.
- Marketplace with no own retail stores
- Direct shipping from manufacturers
- Local seller fulfilment in key markets
- Heavy use of app incentives and referrals
Why it matters
Temu has intensified price competition in online fashion and pushed governments to rethink import duty rules and platform liability. Its litigation with Shein and its regulatory cases in Europe are shaping how cross-border marketplaces operate.
Frequently asked questions
Who owns Temu?
Temu is owned by PDD Holdings, the Nasdaq-listed commerce group that also operates the Chinese platform Pinduoduo. In the US the service is run by the PDD subsidiary Whaleco.
Is Temu a Chinese company?
Temu originates from China, where PDD Holdings built Pinduoduo, and most of its goods are made by Chinese manufacturers. PDD Holdings is registered in the Cayman Islands and lists Dublin as its principal executive office.
