Temu, the Chinese eCommerce company, has become the most popular app in Nigeria’s Google Play Store and Apple App Store. In recent days, the app has topped the charts, surpassing 500 million downloads on the Android platform.
According to SimilarWeb, OPay is currently the second most popular app in Nigeria, followed by Crypto Mayors in third place. WhatsApp holds third position overall. On the Apple App Store, Temu continues to lead, with social networking app Bammby securing second place, and OPay in third.
Temu’s surge in popularity comes as no surprise, given the heavy advertising campaign across Nigerian media. The company reportedly spent $1.3 billion on Meta ads, with its ad spend increasing by 1,000% year-over-year from January to November 2023. Of this, 76% was allocated to social media, while 13% went to other advertising channels.
Temu has also secured several prime ad spots during the Super Bowl, spending $7 million for a 30-second commercial. The company ran ads two years in a row, giving away $15 million in coupons during that time.
Launched in 2022, Temu is owned by PDD Holdings, the parent company of Chinese eCommerce giant Pinduoduo. Founded by former Google employee Colin Huang, PDD Holdings built its reputation by offering low-cost products directly from suppliers.
Temu’s main appeal lies in its affordable products, which give it a competitive edge in many markets, particularly in Nigeria, where inflation and a challenging economy have significantly reduced consumers’ purchasing power.
Nigeria is a key African market for Temu, with its large, tech-savvy youth population supported by the availability of affordable Chinese smartphones.
Temu’s aggressive expansion has enabled it to enter 80 markets in a short period. Its entry into the Nigerian market poses significant competition for players like Jumia, which has already started reducing its marketing spend to boost its profit margins. However, while Temu’s victory in Nigeria may seem assured, the company’s service quality has been called into question several times.
Moreover, Nigeria’s eCommerce market, which was valued at $12 billion in 2019, is expected to reach $75 billion by 2025. The growing adoption of digital payment systems is driving this growth, making online transactions more secure and accessible.
Leave a Reply