PDD-Backed Bargain Shopping App Overtakes Shein in U.S.

(Bloomberg) — This time last year, hardly anyone in the U.S. knew what Temu was. Now, as American consumers grapple with runaway inflation, the bargain shopping app backed by a Chinese tech company is on a tear, with sales exceeding those of rival Shein.

Spending on Temu — an e-commerce marketplace backed by Chinese heavyweight PDD Holdings Inc. — was 20% higher in May than on more-established fast-fashion retailer Shein in the U.S., according to Bloomberg Second Measure, which analyzes billions of credit and debit card transactions.