Based on data analysis from Sensor Tower in the US, the number of users of the Temu app ranked third among major e-commerce platforms in August, reaching 91% of the number of Amazon users. Temu is expected to have more users than Amazon, which has been in business for 30 years, within the year.

According to Nikkei, Temu, a cross-border e-commerce platform originating in China, is taking the world by storm. The number of users is rapidly overtaking the US e-commerce giant Amazon. According to statistics, the number of users of the Temu app reached 91% of the number of Amazon users in August, and is expected to surpass Amazon within the year. In Europe, users in 28 out of 30 countries prefer Temu over Amazon.

On October 9, Zuo Xiaolei, a consultant at the China Cross-border E-commerce 50-Person Forum and former chief economist of Galaxy Securities, said at the 2024 Global Cross-border E-commerce Annual Conference sub-forum that China's cross-border e-commerce transaction volume is growing at a rate of double digits every year, and it is expected that this growth rate will continue this year and next two years.

Currently, the development of cross-border e-commerce in China is gradually shifting from an extensive retail model to vertical category branding, and has become an important breakthrough in promoting the transformation and upgrading of foreign trade and creating a new economic growth point.

According to the Chinese Government Network and People's Daily, quoting China's customs data, China's cross-border e-commerce exports were 1.83 trillion yuan in 2023, up 19.6% year on year; in 24Q1, China's cross-border e-commerce exports were 448 billion yuan, up 14% year on year.

With the improvement of policies to support cross-border e-commerce development and the advancement of the construction of comprehensive pilot zones, higher education. As the demographic dividend for Chinese higher education students continues to be released, e-commerce enterprises that gather high-quality R&D and brand marketing to go overseas and the global layout will become an inevitable major trend in future international trade development, and the prospects for cross-border e-commerce development in China are broad.

According to a research report released by Haitong Securities, the development of cross-border e-commerce in China is gradually shifting from an extensive retail model to vertical category branding, which has become an important breakthrough in promoting the transformation and upgrading of foreign trade and creating new economic growth points.

Cross-border e-commerce related companies:

Zi Fu Yu (02420): One of the largest cross-border e-commerce B2C companies in China, mainly sells clothing and footwear products through third-party e-commerce platforms and self-operated websites. While consolidating the advantages of core channels, Zi Fu Yu has also focused on developing new sales channels such as Temu and Tiktok, and has achieved outstanding milestones. The company achieved revenue of 1.462 billion yuan in the first half of fiscal year 2024, up 6.31% year on year; net profit of 91.365 million yuan, up 789.11% year on year; basic profit per share was 0.18 yuan.

EDA Group Holdings (02505): Yidayun is a B2C cross-border e-commerce supply chain solution provider, providing one-stop end-to-end solutions for e-commerce sellers. Using an asset-light model, the company has established partnerships with more than 60 third-party warehousing suppliers, 300 international freight forwarding service providers, sea and air carriers, and 80 local “last-haul” fulfillment service providers.