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Despite the âmisery indexâ many Kiwis are still spending, so some mums may be in for a treat this Motherâs Day. đ 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. đ
Owned by Chinese PDD Holdings (PDD - ADR) and very recently allegedly headquartered in Ireland, Temu has been running aggressive - some say âbeggingâ - digital marketing campaigns, like offering up to 90% off Motherâs Day deals for their manufacturer-to-consumer products. Promotions that in 2022 Q4 cost the company US$17.3 billion. đž
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 Temuâs cheap clothing has Sheinâs low-priced knickers in a knot. đ©Č 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 theyâll see Temu in court - accusing the new discount merch app of paying influencers to âmake disparaging remarksâ about them. But Shein may have bigger battles ahead. Despite denying plans for a US IPO, Sheinâs under fire by US lawmakers who have raised red flags with the SEC for Sheinâs alleged Uyghur âforced laborâ. đ©
So while itâs too late to order mum a rhinestone evening bucket bag, thereâs still time to grab our fave long-time mum-taxi a sweet as Supercheap Auto gift. We love ya, Mum! đ
Weâre 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. Weâve done our best to ensure all information is current when we pushed âpublishâ on this article. And of course, with investing, your money isnât guaranteed to grow and thereâs always a risk you might lose money.
