Temu customer count falls from January as Shein, TikTok Shop grow

See chart in Dash.

Around 25% fewer shoppers transacted on the Temu platform in August 2024 compared to January 2024, according to Earnest credit card data. The pullback marks a dramatic turn for a company that in its first two years had a seismic impact on several industries including Hobbies and Party Supplies and Discounters. Temu’s overall sales growth began to slow earlier in 2024 despite heavy advertising spend including at the Super Bowl. 

In contrast, Chinese discount fast fashion brand Shein and social media turned ecommerce platform TikTok Shop both notched customer growth in the first 8 months of 2024. TikTok Shop also participated in the summer sales frenzy joining Amazon, Walmart, and Target in offering limited time discounts to drive summer sales.

Temu’s customer post acquisition value remains relatively high compared to competitors according to a study by Associate Professor Daniel McCarthy. But the challenge for Temu going forward will be retaining those customers in the long haul.