Chinese eCommerce company Temu has taken the Nigerian market by storm, becoming the most popular app in both the Google Play Store and Apple App Store. With over 500 million downloads on the Android store alone, Temu has quickly risen to the top of the charts.
According to Similar Web, OPay and Crypto Mayors follow closely behind in popularity on the Google Play Store, while WhatsApp holds the third position. On the Apple App Store, Temu maintains its number one spot, with Bammby, a social networking app, coming in second, and OPay in third place.
The rapid rise of Temu can be attributed to its aggressive marketing strategies, with the company reportedly spending $1.3 billion on Meta ads. This massive ad spend saw a 1,000% increase year-over-year, with the majority of the budget allocated to social media and other forms of advertising. Temu also secured ad spots during the Super Bowl, investing $7 million for a 30-second commercial and giving away $15 million in coupons over two years.
Launched in 2022, Temu is owned by PDD Holdings, the parent company of the Chinese eCommerce giant Pinduoduo. Known for offering low-cost products directly from suppliers, Temu’s appeal lies in its affordable prices, especially in markets like Nigeria where inflation and economic challenges have impacted purchasing power.
Nigeria is a key market for Temu, with a large population of tech-savvy youth and a booming eCommerce sector. The country’s eCommerce market was valued at $12 billion in 2019 and is projected to reach $75 billion by 2025. The growth of digital payment systems has also contributed to the expansion of online transactions in Nigeria.
With its aggressive expansion strategy, Temu has entered 80 markets in a short period, posing stiff competition for players like Jumia. However, concerns have been raised about the company’s quality of service, despite its dominant position in the Nigerian market.
As Temu continues to thrive in Nigeria and beyond, its impact on the eCommerce landscape remains to be seen. With a focus on affordability and accessibility, the company is poised to make a lasting mark in the global eCommerce industry.
