By Casey Hall, Arriana Mclymore
Shanghai/New York (Reuters) -Daily Global Discount E-Commerce Platform Temu decreased by 58% in May, reports The Senser Tower Intelligence Tower, one of the many knitters held by electronic stores.
Temu decided to reduce advertising costs in the US and change the order strategy after the White House ended on May 2 with a practice known as “De Minimis”, which allowed Chinese companies to send low -cost packages without tariffs.
Temu, together with the fast fashion giant, has used this provision for many years to refuse suppliers in China consumers in the US, keeping low prices.
Both Temu and Shane suffered a sharp sales drop drop and clients growth as US President Donald Trump has announced large trading tariffs, according to Bain & Company counseling, but Temu trends were worse than his competitor.
Tariffs made both platforms raise prices, but Shane was able to increase the amount of money spent on the client compared to a year ago, showed data while Temu fought.
The Temu did not respond to a request for a decrease in the US daily users or in the wind that it faces in the US market.
Interaction with Temu decreased significantly after the end of the release, Morgan Stanley Equity Simeon Gutman analyst said skillfully.
“Although the tariff environment is uncertain, if the status -Kua remains for a long period, we believe that the competitive threat of Temu will continue to weaken,” Gutman said.
Last week, the first quarter profit from PDD could not resist growth, and executives reported post -radiation analysts, who call that tariffs have created significant pressure for their sellers.
They once again confirmed the pre -promise Temu to keep stable prices and work with traders in the regions, citing the transition to the local model announced in early May.
The preliminary business model Temu has given the merchants responsible for ordering and supplying its products, while in China the company has managed most logistics, pricing and marketing.
Now Temu traders “can send individual orders from China to Temu involved in US warehouses, but they will need to apply for tariffs and customs fees and paper works,” HSBC analysts said. Temu continues to process the execution of orders close to buyers, setting prices and internet operations.
In the last week’s note, HSBC said the growth of Temu in the non -US markets took, while not growing US -growing users up to 90% of 405 million worldwide monthly users in the second quarter.
