Rising prices for everything, including cereal and toilet paper, are putting a strain on household budgets. Many consumers are hesitant to spend money on non-essential goods.
Rae, a 27 year-old single mother with two children, lives in Philadelphia. She has had to cut back on small pleasures like shopping for a new dress. But, other expenses like gas or utility bills have been eating into her budget. Temu was a new online marketplace where she found a large selection of dresses and many were less than $10.
Rae shared that Temu had helped her to save money and she doesn’t feel as though she’s missing out on anything because of the low prices. Rae declined to disclose her full name, because it would be embarrassing for her friends and family to hear about her financial affairs.
Temu started operations in September. It is a sister firm to Nasdaq listed Pinduoduo [Nasdaq.PDD], one of the biggest e-commerce platforms that has almost 900 million users. Temu’s mobile apps and website were launched in September to huge media coverage.
According to Temu, no matter what occasion it is, you can always count upon Temu to have the right things that will brighten up your life and help you live the life you desire.” The website featured a bright orange logo with the slogan “Team Up Price Down.”
Temu’s website has listings for products from a variety of categories, such as clothing and household items. You can find listings for a girl’s pattern dress for $3.95 or a Halloween-themed necklace, as well as a pair for women of running shoes for $4.99.
According to the company, the e-commerce website is able to offer low prices due to its extensive global supplier and manufacturer network that is shared with Pinduoduo, which works with more than 11 million merchants and manufacturers around the world, according to the company.
Temu claims that it saves both transportation and storage costs, shipping directly from the merchant, passing the savings on to the customers. For a limited time, it is offering free shipping for all items ordered on its website temu.com.
Temu entered the market with a simple, low-cost, value-for–money proposition.
Inflation rose to a four-decade peak in June. It continues to be high, fueled by higher food and gas prices. Gallup has found that the majority of Americans say inflation is causing their financial problems.
From 49% in January’s survey, 56% of Americans claimed that rising costs have caused them hardships. This is up from 49% in January. With 63% of the respondents stating that rising prices caused hardship, this was more than 46% who were surveyed in November. Inflation worries are also a concern for upper-income families, with 40% of high-earners expressing concern, up from 28% November.
Temu’s timing might prove to be an inspiration, with US households already in the midst of tightening their belts.
After all, you can get a gold rhinestone buckle belt with a butterfly clasp for as little as $1.43.