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Despite the ‘misery index’ many Kiwis are still spending, so some mums may be in for a treat this Mother’s Day. 💐 Some may even have kids who shop like a billionaire on global e-commerce mega-site Temu, which launched in September last year and landed with a whimper not a roar on Super Bowl Sunday. For under 20 bucks, this Sunday mums could be unwrapping bling for their Crocs, bra storage systems and, erm, double chin reducers? Or for under $40, sneakers that look cheekily similar to Adidas. 👟
Owned by Chinese PDD Holdings (PDD - ADR) and very recently allegedly headquartered in Ireland, Temu has been running aggressive - some say ‘begging’ - digital marketing campaigns, like offering up to 90% off Mother’s Day deals for their manufacturer-to-consumer products. Promotions that in 2022 Q4 cost the company US$17.3 billion. 💸
With a market cap of more than US$83 billion, PDD Holdings is no multinational tech slouch, however. The Nasdaq ADR-listed company, which also owns Chinese e-commerce app Pinduoduo, has a board with a collective career pedigree that includes Microsoft, HSBC, Tencent and Yahoo! Yet despite a 46% year-on-year Q4 revenue increase - well above single-digit revenue growth of rivals Alibaba (BABA - ADR) at 2% and JD (JD - ADR) at 7.1% - they fell short of analyst expectations, which sparked a 14% share slide, since dropping 21.4% following the March announcement.
But Temu’s cheap clothing has Shein’s low-priced knickers in a knot. 🩲 Chinese online retailer and Gen Z fave, Shein, which took three years to gain the same 50 million app downloads Temu achieved in six months, says they’ll see Temu in court - accusing the new discount merch app of paying influencers to ‘make disparaging remarks’ about them. But Shein may have bigger battles ahead. Despite denying plans for a US IPO, Shein’s under fire by US lawmakers who have raised red flags with the SEC for Shein’s alleged Uyghur ‘forced labor’. 🚩
So while it’s too late to order mum a rhinestone evening bucket bag, there’s still time to grab our fave long-time mum-taxi a sweet as Supercheap Auto gift. We love ya, Mum! 💘
We’re not financial advisors and Hatch news is for your information only. However dazzling our writing, none of it is a recommendation to invest in any of the companies or funds mentioned. If you want support before making any investment decisions, consider seeking financial advice from a licensed provider. We’ve done our best to ensure all information is current when we pushed ‘publish’ on this article. And of course, with investing, your money isn’t guaranteed to grow and there’s always a risk you might lose money.
