The finding: Temu’s app is driving far more engagement than major competitors such as Amazon and Alibaba Group Holding’s AliExpress, per an Apptopia analysis.
- The average Temu user spent 18 minutes per day on the company’s app in Q2, nearly double the 10 minutes they spent on Amazon and 11 minutes on AliExpress and eBay.
- The discrepancy between Temu and its competitors is even more pronounced among younger consumers who spend an average of 19 minutes a day on the platform, far outpacing Amazon, which was its closest competitor at 11 minutes.
The secret sauce: Engagement is at the heart of Temu’s app strategy, which is why the platform features games that enable users to win rewards. For instance, users can play a roulette-like wheel to win a coupon that increases in value if they complete their purchase within 10 minutes.
- The more time that consumers spend exploring the app, the likelier they are to make an impulse buy.
- Temu is far from alone in attempting to boost engagement. Amazon, for example, has made several (largely unsuccessful) attempts to boost engagement via social features such as a TikTok-like feed and the ability to consult a friend.
The big takeaway: In a little over a year, Temu managed to grab a significant share of the US retail market and build connections with consumers.
- In its most recent quarter, for example, Temu accounted for $4.2 billion of transactions, per an estimate by Citigroup analyst Alicia Yap.
- While those high numbers stem in large part from its parent company PDD Holdings’ massive spending on marketing and advertising, its ability to keep users on its app bodes well for its long-term future.
Go further: Read our “US Mcommerce 2023” report to understand the evolving mcommerce market.