Listen to this article now |
The Super Bowl, one of the biggest annual sporting events in the US, was recently broadcasted to millions of viewers around the world. Amidst the highly anticipated commercials that air during the game, there was one that stood out featuring a woman shopping for clothes on her phone. This advertisement was for Tmoo, an ecommerce platform that offers a wide variety of products ranging from clothing and accessories to home decor and even power tools.
Tmoo, which is owned by a Chinese company, launched in the US officially in September of 2022. Within just one month, it had become the most downloaded shopping app in the country, surpassing major players like Amazon and Walmart. This remarkable growth continued, with Tmoo seeing 7 million downloads in January of 2023 alone.
However, it was during the Super Bowl that Tmoo truly made its mark. The ad was seen by an estimated 113 million viewers, a truly impressive figure that speaks to the platform’s increasing popularity. It seems that Tmoo is on its way to becoming a household name, and its explosive growth shows no signs of slowing down.
While the app is based in Boston, it is owned by PPD Holdings, a Chinese e-retailer that also owns Pindoto. Pindoto, which has been in business since 2015, had approximately 75.1 million monthly active users in the first quarter of 2022, indicating that PPD Holdings has expertise in e-commerce.
It’s worth noting that TeamView’s connection to China goes beyond ownership. The app’s products are shipped directly from China, unlike Amazon, which uses a network of US warehouses. This allows TeamView to offer products at extremely low prices, such as swimsuits for as little as $6 and slippers for just $3.
While these prices are undoubtedly appealing, some customers are skeptical. One analyst suggested that American consumers may not be prepared to accept such low prices, questioning how they can be so affordable. Additionally, some customers may be wary of buying products shipped from China, as concerns about quality control and labor practices in Chinese factories have been raised in the past.
Overall, the popularity of TeamView raises questions about the future of e-commerce in the US and the role of Chinese companies in the market. With PPD Holdings’ demonstrated expertise in e-commerce and TeamView’s ability to offer low prices, it’s possible that we will see more Chinese-owned companies making inroads into the US market in the years to come. However, only time will tell whether American consumers will be receptive to these companies and their business practices.
The question always arises whether something is too cheap to be good. This is also a concern for a Chinese e-commerce platform that competes with Timus. The company primarily sells clothing and home decor, but its catalog is not as extensive as Timus. However, its prices are extremely low, which has led to controversy.
The reason for the low prices is that Shein has collaborated with approximately 6,000 Chinese clothing factories, which produce clothing for over 150 countries and regions across the globe. Nonetheless, the working conditions at these factories are unsustainable, according to reports.
In 2020, Wired and UK’s Channel 4 released a documentary, which exposed unsafe working conditions at Xi and Spectris, leading to litigation. Workers were reportedly working 75-hour shifts with little time off, and some were not receiving minimum wage requirements or contracts. The backlash against Shein came mostly from its target customers, young people.
Sheehan’s revenue is still increasing and it made $16 billion in sales during the first half of 2022. However, it will have to confront resistance, similar to what T-Moo may face in the future. Meanwhile, the website is relying on its low prices and extensive social media following to attract customers. Once customers visit the site, TeamView is optimistic that they will shop like billionaires.
What do you think about the potential of Temu to become a significant player in the world of online commerce? Share your thoughts in the comments below.
