KEY POINTS
  • An e-commerce app focusing on selling cheap goods to overseas consumers, Temu made its foray into Asia through Japan and South Korea in July.
  • In Japan and South Korea, Temu has overtaken Shein by staying at the top of shopping app rankings in those locations for a longer period of time, according to data.ai analysis shared with CNBC.
  • Temu is backed by Nasdaq-listed Chinese tech giant PDD Holdings, which also owns China-based e-commerce app Pinduoduo.
A package from Temu is seen in front of a screen with the Temu logo. (Photo by Nikos Pekiaridis/NurPhoto via Getty Images)

Chinese low-cost retailer Temu is dominating app stores in Japan and South Korea in its category, dethroning rival Shein after its successful expansion in Western markets.

"Temu has rapidly expanded its footprint beyond the U.S. and into a number of international geographies and we believe is now available in 40+ countries ... where we continue to see opportunities for growth in the quarters ahead," said Goldman Sachs in an Oct. 4 report.