Cross-border fashion and lifestyle platform Temu is set to expand into Australia and New Zealand, aiming to take on Shein within a year.
Temu will roll out in the two Oceania markets on March 13, offering an exemption of commission and deposit fees. According to China Daily, PDD Holdings will provide infrastructure services including warehousing, cross-border logistics and after-sales services for manufacturers in China and other countries.
Launched last September, the online platform, headquartered in the US and owned by Chinese e-commerce discounter PDD Holdings is considered Shein’s rival, offering affordable products delivered directly from suppliers in China and other markets, including fashion and accessories, electronics, cosmetics and even baby goods.
The Oceania launch is part of the company’s effort to further boost its global reach after launching in Canada last month. Reaching record-high sales in the US recently, the Boston-based e-commerce platform surpassed Amazon and Walmart to become the most downloaded app in the US last month.
According to data analytics firm YipitData, the company reached US$500 million in GMV in the market during its first five months of operation.
Rival Shein, which does not sell in China, was reported to be in talks to raise funds to US$3 billion at a reduced valuation of $64 billion earlier this year. The online retailer was seeking to close the fundraising round from existing investors including Abu Dhabi sovereign wealth fund Mubadala, venture capital group Sequoia China and private equity group General Atlantic.
