Temu, a Chinese eCommerce company under PDD Holdings, has swiftly become the most downloaded app in Nigeria across both Android and iOS platforms. According to Similarweb, Temu overtook OPay on November 27, 2024, to claim the top spot on the Google Play Store, solidifying its position as Nigeria’s most popular Android app. Temu also ranks above Jumia in the shopping category on both the Play Store and Apple’s App Store, highlighting its dominance in Nigeria’s competitive eCommerce space.
Launched in 2022, Temu’s parent company, PDD Holdings—known for its Chinese counterpart Pinduoduo—built its reputation on providing low-cost goods sourced directly from suppliers. In Nigeria, this strategy has paid off, as the platform’s popularity is driven by its affordability amid inflationary pressures and declining purchasing power.
The company’s marketing investment has been massive. Reports indicate Temu spent $1.3 billion on Meta advertisements, with ad spending soaring 1,000% year-over-year from January to November 2023. The majority—76%—of its budget went toward social media ads, supplemented by high-profile campaigns like two consecutive Super Bowl ad spots, each costing $7 million. Temu also distributed $15 million in coupons during these events to entice new users.
Temu’s entry into Nigeria reflects the strategic importance of the market. Nigeria’s eCommerce sector, valued at $12 billion in 2019, is projected to hit $75 billion by 2025, fuelled by an increasing adoption of digital payment systems and widespread smartphone penetration. Affordable Chinese smartphones have further enabled tech-savvy Nigerian youth to embrace platforms like Temu.
However, the company’s rapid rise hasn’t come without challenges. Questions surrounding Temu’s service quality have surfaced, posing potential hurdles to its continued success. As Temu expands into more than 80 global markets, its aggressive push into Nigeria is set to intensify competition with established players like Jumia, which has already scaled back marketing efforts in pursuit of profitability.
The stage is now set for a fierce battle in Nigeria’s burgeoning eCommerce landscape, where Temu’s low prices may prove both an advantage and a point of scrutiny.
