Shanghai-based e-commerce company Pinduoduo, which surprised investors this week with strong second-quarter performance, has launched a Shein-style app to woo US consumers with offerings such as earrings that cost just 77 US cents or a $3.76 dress, reports the South China Morning Post. The app called Temu is operated by Whaleco Inc, a US-based company that Chinese media LatePost reported is owned by Pinduoduo. The app puts the budget e-commerce firm in direct competition with fast-fashion platform Shein, as it eyes overseas expansion amid a slowing economy at home.
Registration information for a Chinese website inviting merchants to sign up as vendors on Temu also shows the site as owned by Pinduoduo. The company did not respond to requests for comment.
The Nasdaq-listed firm joins Chinese rival Shein by bringing made-in-China apparel directly to US consumers. It has even matched Shein’s free shipping for orders of $49 or more.