Yahoo Finance Temu’s Most Loyal Shoppers Are Actually Boomers and Gen Xers
(Bloomberg) -- Temu is attracting hordes of Boomer and Generation X shoppers, belying the Chinese e-commerce app’s reputation as a destination for younger consumers.
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In Temu’s first full year of operation in the US, Gen Xers and Baby Boomers shopped there more frequently and spent more than younger shoppers, according to the Chicago research firm Attain. Boomers 59 and older were the most loyal, placing about six orders over 12 months, twice as many as Gen Z shoppers aged 18 to 26, according to Attain, which mines credit card data from a panel of 6.5 million consumers.
Temu’s appeal to Boomers and Gen Xers suggests it isn’t simply a fad with younger shoppers but has potential staying power.
“Temu has a diverse product mix that appeals to more mature shoppers who appreciate the variety and the discounts,” said Attain Chief Executive Officer Brian Mandelbaum.
Dawn Damon, a 51-year-old parent of five from Spokane, Washington, heard about Temu from her 72-year-old mother. She got hooked quickly and placed about 31 orders, snatching up purses, luggage, winter hats, candles, wall art, towels and a soap dispenser.
“I love shopping,” Damon said. “I haven’t always had a lot of money or time or energy to shop, but I can scroll on Temu and just look at things.”
Owned by PDD Holdings Inc., Temu debuted in the US in late 2022 and quickly became one of the most downloaded apps. The company also advertised aggressively, reaching shoppers through Facebook and a splashy Super Bowl commercial that encouraged people to “Shop Like a Billionaire.”
Along with Shein and TikTok Shop, Temu appeals to consumers willing to tolerate longer delivery times in exchange for steep discounts on a variety of goods. The three Chinese-linked upstarts are an alternative to Amazon.com Inc., which dominates its home e-commerce market but has recently posted slowing sales growth.
Wendy Woloson, a historian of consumer culture at Rutgers University-Camden, said Temu’s accessible nature lowers the entry barrier for older people who might be less computer-savvy. “Navigating the site is a lot more intuitive than say, Amazon, in that it offers up a host of goods in one view that are easy to see,” she said.
The app’s game-like shopping experience makes visiting feel like a trip to the casino. Users spin a roulette wheel to win discounts and free prizes, and are rewarded for referrals.
“Gamification elements increase the perceived value of the product and the hedonic value of the shopping experience, which are important motivational factors shaping consumer behavior,” said Emily Balcetis, an associate professor of psychology at New York University.
Older shoppers might not be as technologically educated as “younger, digital natives,” and evidence suggests they are less conscious of how gamification impacts their purchasing decisions, Balcetis added. In other words, older users “may be more likely than younger online shoppers to be pulled in by the entertaining elements of the shopping experience.”
Damon, who also shops at discount retailers like Ross Stores Inc. and Marshalls, said her Temu purchases have been hit or miss, which she considers part of the fun.
“I got some wall art that was very nice and vases that were nice,” she said. “I got a soap dispenser that was beautiful in the picture but was so cheap-looking when it showed up all I could do was laugh.”
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