Will China’s Temu move into groceries? It’s already happening and it’s going to cause an earthquake Stateside

The Chinese company Temu continues to grow in popularity in the US and internationally.

It is owned by the leading online retailer in China, Pinduoduo, which translates to "join together more more" in English. Pinduoduo sells a wide range of products at low prices. Temu was created to offer consumers the lowest prices ever offered. It worked, with the venture becoming one of the fastest growing apps globally.

In a LinkedIn post, Brittain Ladd, a supply chain consultant and former Amazon executive, said: “I’ve stated many times that Pinduoduo isn't only focused on low prices. It is focused on changing the way commerce is done in China, and that eventually, leading retailers will join their platform.”

“Many people disagreed with me. For example, a senior executive at a retailer in the USA stated to me, "Retailers aren't going to launch on Pinduoduo's platform." That's false. H&M has announced that they have launched a storefront on Punduoduo, becoming the first international fashion brand to do so.”

He added: “In 2022, I made it clear that Temu and Pinduoduo will work together to introduce new categories of products including furniture, home furnishings, appliances, and many other products. It's happening. Temu has greatly expanded the assortment of products that they offer.”

“What’s also about to happen is that the next category that Temu is going to enter in the USA will be so disruptive that it will have the impact of an earthquake on this industry. What's the category? Groceries.”

“China is considered to have the best grocery model for physical grocery retail and online grocery shopping. I concur. I've assessed every aspect of China's grocery industry, it's truly impressive.”

Ladd argued that what truly separates China's grocery model from that of the grocers in the USA, is that Pinduoduo has created a model whereby consumers are offered lower prices if they can team up with others to buy the same product, which incentivises them to share Pinduoduo and encourage their friends, family and work colleagues to buy items.

“I designed a similar model for use in the USA. I tried to get Meta (Facebook at the time) and Amazon to collaborate on launching a "social commerce" grocery model.”

He concluded: “American consumers are sick of paying high prices for groceries. They will embrace a new retail model that will provide them with groceries that will be 10% to 40% lower than the what they're currently paying for groceries.”

“Note: Temu isn't the only company contemplating the launch of a new grocery model. I know of a startup that has combined the science from two Nobel Prize winners with a platform that will revolutionise the way consumers shop.”

2024 RTIH INNOVATION AWARDS

Grocery retail is a key focus area for the sixth edition of the RTIH Innovation Awards, which are now closed for entries.

The awards, sponsored by CADS, 3D Cloud, Brightpearl by Sage’s Lightning 50, Business France, and Retail Technology Show 2025, celebrate global tech innovation in a fast moving omnichannel world.

Key 2024 dates

Friday, 25th October: Award entry deadline 

Tuesday, 29th October: 2024 shortlist revealed

30th October-6th November: Judging days

Thursday, 21st November: Winners announced at the 2024 RTIH Innovation Awards ceremony, to be held at RIBA’s 66 Portland Place HQ in Central London.