On Monday, December 2, 2024, it was revealed that the Chinese eCommerce company Temu has taken the top spot as the most popular app in Nigeria. The app, which has surged in popularity, is now the most downloaded on both the Google Play Store and Apple App Store, with over 500 million downloads on Android alone.
According to Similar Web, Temu currently holds the number one position on both platforms in Nigeria. OPay ranks second on Android, followed by Crypto Mayors in third. On the Apple App Store, Temu is again number one, while Bammby, a social networking app, holds second place and OPay is third.
Temu’s rapid rise in popularity comes as no surprise to many, as the Chinese eCommerce platform has been heavily advertising across social media. Reports show that the company spent an enormous $1.3 billion on Meta (formerly Facebook) ads, marking a 1,000% increase in ad spend compared to the previous year. A large portion of this advertising was focused on social media, with 76% of the budget directed there.
In addition to its online ads, Temu has also run commercials during the Super Bowl for two consecutive years, spending $7 million on each 30-second spot and giving away $15 million in coupons as part of their marketing efforts.
Launched in 2022, Temu is owned by PDD Holdings, the parent company of Pinduoduo, a major Chinese eCommerce giant. The company, founded by former Google employee Colin Huang, gained recognition for offering affordable products shipped directly from suppliers, which has given it a competitive edge in many markets, including Nigeria.
Temu’s appeal in Nigeria lies in its low-priced products, which resonate in a market where inflation and economic challenges have made shopping more difficult for many. According to Techpoint Africa, Nigeria is an important market for Temu due to its large, tech-savvy youth population, supported by the widespread use of affordable Chinese smartphones.
Nigeria’s eCommerce market, which was valued at $12 billion in 2019, is projected to grow to $75 billion by 2025, and digital payment systems are helping facilitate this growth by making online shopping more secure and accessible.
Temu’s rapid expansion into 80 markets means tough competition for companies like Jumia, which has already begun reducing its marketing spend to focus on increasing its profits. However, despite its growing dominance, some have raised concerns about the quality of service Temu provides, something that will be key in its long-term success in Nigeria.
