What: Pinduoduo, a popular Chinese e-commerce enterprise, has released a new app intended to leverage its supplier network and compete with Shein in the fast-fashion market.

Why it is important: Temu has already been downloaded over 400,000 times, making its threat to Shein even greater.

Backed by the Chinese retail giant Pinduoduo, success will be easier for the newly released platform. The company allows groups of users to purchase goods at a lower cost, connecting merchants directly with buyers while sellers bear the shipping costs. The company’s newest app, Temu, is primarily focused on apparel, home goods and electronics. Like Shein, Temu hosts thousands of new products daily at an unbelievably low price.

Parent company Pinduoduo helps Temu through its existing relationships with suppliers, making it easier to upload new and of-the-moment styles that rival that of Shein.

Temu: Shein’s new rival