What is Temu, the app that asks users to ‘shop like a billionaire’?

Temu is rapidly becoming one of the most popular apps for Canadians to shop online. Here's what you should know about concerns associated with the e-commerce app.

Rock-bottom prices on a variety of clothes and household goods has helped e-commerce marketplace Temu surge in popularity with Canadians as many continue to struggle with the cost of living, according to retail analysts.

But there are privacy and environmental concerns tied to “ultra consumption” that experts warn shoppers ought to keep in mind before downloading and checking out from the app and others like it.

Temu’s website says the company was founded in Boston last year, though it’s a subsidiary of Shanghai-based PDD Holdings, a multinational commerce group established in 2015 in China.

Both the app and online storefront bring shoppers to a marketplace that allows consumers to buy directly from factories, primarily in China, “at very, very, very low prices,” says retail analyst and author Bruce Winder.

The app made a splash with an ad at the Super Bowl this past year that urged users to “shop like a billionaire.” As of Aug. 18, it was the No. 2 free application on the Apple App Store in Canada, behind only a B.C. Wildfire Services app. Market intelligence firm GWS estimates Temu has added nearly 10 million daily users in the U.S. since the start of the year.

The app has earned comparisons to China’s ultra-fast-fashion giant Shein among industry observers for its factory-to-consumer business model, but Winder notes the breadth of products available on the marketplace go beyond apparel, giving it more similarities to Amazon.

Like Shein, however, Temu’s real selling point is the prices. A back-to-school sale in mid-August for instance advertised sunglasses for under $4, shaving blade refills for less than $5, and a smart watch for $28.

Winder says Temu has “taken the world by storm” with prices that look like they’re “from another century.”