Chinese Retailer Temu Gains Edge Over eBay In US Market
Portfolio Pulse from Shivani Kumaresan
Chinese e-commerce platform Temu, a division of PDD Holdings Inc (NASDAQ:PDD), has surpassed eBay Inc. (NASDAQ:EBAY) in attracting repeat U.S. customers. A survey by Omnisend shows 34% of consumers shop on Temu monthly, compared to eBay's 29%. Temu's growth is driven by heavy marketing and promotional discounts, including Super Bowl ads. Despite challenges in product quality and delivery speeds, Temu's direct-from-factory sales model is gaining traction among price-conscious shoppers.
June 11, 2024 | 6:48 pm
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Amazon.com Inc (NASDAQ:AMZN) is facing a shift in consumer behavior with only 40% of U.S. shopping journeys starting on its platform, down from over half in 2022.
The decline in the percentage of U.S. shopping journeys starting on Amazon may indicate a shift in consumer behavior, potentially impacting Amazon's market dominance.
CONFIDENCE 80
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eBay Inc. (NASDAQ:EBAY) has been outpaced by Temu in attracting repeat U.S. customers, with only 29% of consumers shopping on eBay monthly compared to Temu's 34%.
eBay's lower customer engagement compared to Temu may negatively impact its stock as it indicates a loss of market share.
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IMPORTANCE 70
RELEVANCE 100
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Google (NASDAQ:GOOGL) is benefiting from a trend where more consumers start their shopping journeys on search engines, seeking better deals across various platforms.
The trend of consumers starting their shopping journeys on search engines like Google could positively impact Google's advertising revenue.
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PDD Holdings Inc (NASDAQ:PDD) is seeing increased customer engagement in the U.S. through its Temu platform, surpassing eBay in monthly repeat customers. This growth is driven by aggressive marketing and promotional discounts.
Temu's success in attracting more repeat customers than eBay indicates strong market penetration and effective marketing strategies, likely boosting PDD's stock in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100