Chinese internet giants have been busy trying to expand overseas lately as their growth stalls at home with peaking internet penetration and lackluster consumer spending as the economy slows. But most have found limited success so far due to stiff local competition and lack of familiarity with overseas markets.
While the group has found some traction in developing regions like Southeast Asia, which shares many qualities with China, stiff competition has kept most out of more lucrative U.S. and European markets. But innovative low-cost e-commerce expert Pinduoduo Inc. (PDD.US) is trying to break that cycle with the launch of its cross-border e-commerce platform Temu in early September, targeting the U.S. before potentially expanding to other markets.
Now, about two months after the launch, the platform – which boasts a wide range of items like key chains and storage containers selling for less than $1 – appears to be gaining some momentum. Temu was the No. 1 U.S. shopping app in the iPhone app store on Oct. 17, and has been in the top 10 in the iPhone and Android app stores for over a week, according to Marketplace Pulse.