Total revenue reaches £27 billion! Temu's revenue will soar in 2023

It is learned that the latest research report from Earnest Analytics shows that in 2023, Temu will achieve amazing growth in revenue and customer loyalty.

Temu's revenue will soar in 2023

For the year to December 31, 2023, Temu’s total revenue reached 247 billion yen (£27 billion), almost double the 130 billion yen (£14.2 billion) it posted the previous year.

Meanwhile, Temu's operating profit soared to 58 billion yen (£6.3 billion), up 93% from 30 billion yen (£3.3 billion) in 2022.

In the fourth quarter of 2023, Temu’s revenue surged 123% to 89 billion yen (9.7 billion pounds), while operating profit increased by 146% to 22 billion yen (2.4 billion pounds).

Temu customer loyalty surpasses Walmart

Research shows that more than 28% of Temu’s first-time shoppers will choose to buy again, which is a considerable proportion. In this regard, Temu’s performance has surpassed Walmart and Target, with a second purchase rate almost double that of these two giants.

Temu's sales increased by an astonishing 840% from January 2023 to 2024. Especially during the 2023 holiday season, its growth rate exceeded 1,100%, which is a strong momentum.

Here are some key statistics about Temu in the US e-commerce market:

• Since Temu’s launch, approximately 18% of U.S. households have chosen to shop on Temu.

• Despite fierce market competition, Temu's US customer base tends to be middle- and high-income, with 44% of sales coming from people with annual incomes of more than $130,000.

• More than 96% of Temu customers also shop at Walmart and Amazon, while 84% frequently visit Target.

• Wish and AliExpress customers also flocked to Temu. In January 2024, 90% of Wish customers shifted their online discount spending to Temu.

• 54% of Dollar General customers also switched their discount purchases to Temu.

Earnest Analytics further pointed out that although Temu has invested heavily in marketing and loss-making products, if Temu starts to actively recruit Western sellers and introduce higher-quality high-ASP products (high average selling price products), then with the existing customer loyalty, Temu is likely to become one of the strongest competitors that poses a serious threat to the existing market.

Editor ✎ Ten degrees/

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