What: Temu, a fast-growing e-commerce platform owned by PDD Holdings, is encountering significant challenges as it expands globally, facing market saturation, legal issues, and increased competition.

Why it is important: The struggles of Temu highlight the difficulties faced by e-commerce platforms in maintaining rapid growth amid fierce competition and regulatory scrutiny. Understanding these challenges provides insight into the broader dynamics of the global retail market and the strategies companies must adopt to sustain success.

Temu, owned by PDD Holdings, has rapidly ascended in the global fast-fashion market but is now facing significant hurdles. Despite its initial success, marked by high-profile advertising campaigns like the Super Bowl ads, Temu's growth is stalling due to market saturation and increased competition from platforms like Amazon and TikTok Shop. The company is also dealing with legal challenges, including lawsuits and potential regulatory changes that threaten its cost advantages. Internally, Temu faces unrest from merchants alleging unfair practices. Despite these issues, Temu continues to offer a unique value proposition with ultra-low prices, but it must adapt to sustain its growth in a competitive and evolving market

Temu faces challenges in global expansion