Daily US users of PDD Holdings’ global discount e-commerce platform Temu fell by 58% in May, according to market intelligence firm Sensor Tower, one of many headwinds the e-retailer is facing amid a US-China trade war.
Temudecided toslash ad spendingin the US and shift itsorderfulfillment strategy after the White House on May 2 ended the practice known as “de minimis” — which allowed Chinese companies to ship low-value packages to the United States tariff-free.
Temu, along with fast-fashion giant Shein, had utilized that provision for years to drop-ship items directly from suppliers in China to consumers in the US, keeping prices low.
Both Temu and Shein have suffered a sharp drop in sales growth and customer growth rates since US President Trump announced sweeping trade tariffs, according to data collected by consultancy Bain & Company, but Temu’s trends have been worse than its rival.
Tariffs forced both platforms to raise prices, but Shein has been able to increase the amount of money spent per customer compared to a year ago, the data showed, while Temu has struggled.
Temu did not respond to a request for comment on the drop in US daily users or the headwinds it faces in the US market.
Engagement on Temu has dropped significantly following the end of the exemption, Morgan Stanley equity analyst Simeon Gutman said in a May note.
“While the tariff environment is uncertain, if the status quo remains for an extended period, we believe Temu’s competitive threat will continue to weaken,” Gutman said.
Last week, PDD’s first-quarter earnings fell short of growth estimates and executives told analysts on a post-earnings call that tariffs had created significant pressure for its merchants.
They reiterated Temu’s earlier pledge to keep prices stable and work with merchants across regions, referring to a shift to a local fulfillment model announced at the start of May.
Temu’s previous business model gave merchants responsibility for ordering and supplying their products while the China-based company managed most of the logistics, pricing and marketing.
Now, Temu’s merchants “can ship individual orders from China to Temu-partnered US warehouses but they would need to address tariffs and customs charges and paper work,” according to a note from analysts at HSBC. Temu continues to handle fulfilling orders close to shoppers, setting prices and online operations.
In last week’s note, HSBC said that Temu’s growth in non-US markets has picked up, with non-US users rising to 90% of its 405 million global monthly active users in the second quarter.
“New user uptick grew swiftest in less affluent markets,” analysts wrote.
British actor Terence Stamp – who famously played General Zod in Superman and Superman II – has died at the age of 87.
The Oscar-nominated actor, who was born in London’s East End, also starred in hits such as Theorem, A Season in Hell, and The Adventures of Priscilla, Queen of the Desert.
He formed one of Britain’s most glamorous couples with Julie Christie, with whom he starred in “Far From the Madding Crowd” in 1967.
In a statement, his family said: “He leaves behind an extraordinary body of work, both as an actor and as a writer that will continue to touch and inspire people for years to come.”
This breaking news story is being updated and more details will be published shortly.
Indian ag and automaker Mahindra has launched a limited-run Batman Edition of its BE 6 Electric Origin SUV, calling it, “a production car that brings to life a rare fusion of cinematic heritage and modern luxury, inspired by Christopher Nolan’s critically acclaimed The Dark Knight Trilogy from Warner Bros. Pictures.”
And, you guys – the new Mahindra BE 6 is. So. Serious.
Someone at Mahindra is very taken with American culture it seems. After launching the Willys MB Jeep-inspired Mahindra Roxor a few years ago, the company followed it up by building a credible line of EVs co-developed with VW. Now, they’re building a limited edition of one of those EVs inspired by another American cultural icon.
“Batman is more than a pop-culture icon — he represents innovation, resilience, and an unyielding drive to push boundaries,” says Vikram Sharma, Senior Vice President, Warner Bros. Discovery Global Consumer Products, APAC. “This collaboration brings that spirit to the road in a bold, electric way. With this limited-edition range, fans in India can now experience the thrill of Batman every time they drive. It’s a collector’s statement on wheels.”
Pinstripe graphic and The Dark Knight Trilogy Bat Emblem across the passenger dashboard panel
Race car inspired open straps with Batman Edition Branding Batman Edition welcome animation on the infotainment display
Custom Batman inspired exterior engine sounds
Despite all the Batman branding, the end result is almost tasteful. I could do without the custom Batman decal on the front quarter panels, but the rest of the mods are far less offensive. I even like the little “Bat Signal” puddle lights on the wing mirrors.
Mahindra Batman BE 6
As a car, the special edition Batman Mahindra is based on the top-shelf version of the BE 6, fitted with a 79 kWh battery good for 550 km (about 340 miles) of range according to its WLTP rating. That battery sends power to a rear-mounted 282 hp (210 kW / 286 PS) electric motor generating and 380 Nm (about 280 lb-ft) of torque that sends power to the rear wheels.
The BE6 also features a modern Level 2 ADAS tech and screens everywhere, including in the steering wheel hub – which seems like it might get particularly nasty in an airbag deployment (but no one asked me).
Pricing starts at ₹27.79 lakh (a little under $27,500, as I type this), and production will be limited to just 300 units. Order books are set to open 23AUG.
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A company which makes miniaturised electric versions of classic cars has secured a rescue deal led by an American merchant banking group.
Sky News understands that the future of Hedley Studios – formerly known as The Little Car Company – has been salvaged through a pre-pack administration deal.
FRP Advisory is understood to have acted as administrator before selling the business to an entity controlled by Island Capital Group.
Hedley Studios was founded in 2018, when luxury car-maker Bugatti approached Ben Hedley to see if he could recreate a 1920s Type 35 racing car at half-scale to mark its 110th anniversary.
In a statement issued in response to an enquiry from Sky News, the company said it had built and delivered more than 500 vehicles to clients in more than 60 countries in the last 17 months.
Hedley Studios manufactures its cars at three-quarters the size of the original model, with the resulting vehicles typically costing £75,000 or more.
Image: Pic: Hedley Studios
“We’re thrilled to welcome Island Capital Group as a strategic partner in the next phase of Hedley Studios’ growth,” Mr Hedley said.
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“Its investment and belief in our vision mark a pivotal moment for the company as we accelerate our expansion and reach new global audiences.
Hedley Studios makes its cars in partnership with a range of luxury manufacturers, including Aston Martin, Bentley and Ferrari.
Andrew Farkas, founder, chairman and CEO of Island Capital, which initially backed Hedley Studios in 2023, said: “This latest investment is testament to the entrepreneurial spirit of Ben and his team in building a successful British luxury brand in a short period of time.
“Automotive enthusiasts globally are increasingly keen to honour these historic icons, bringing them to new audiences in a new, fully electric way.
“Our broader investment marks the beginning of a new chapter for Hedley Studios, reinforcing its position as a leader in the creation of luxury, driveable artworks, and Island Capital is excited to be part of that growth journey.”