Representatives of a surprising company made the rounds from hotel room to hotel room: Chinese e-commerce newcomer Temu.

Temu, which owns Chinese-founded PDD Holdings, sponsored the three-day trade show’s daily coffee and tea breakfast, according to Phyllis Rein, president of the Footwear Show New York Expo. In return for the event’s refreshments, Temu used the venue as an opportunity to network with established and emerging brands as the fast-growing e-commerce company looks to attract more merchants to its platform.

Temu placed coffee and tea on a fold-out table on each floor with brochures about Temu’s marketplace. The brochures encouraged brands to “start selling on Temu” and included QR codes that, when scanned, redirected to Temu’s online store registration application page. For about six months, China-backed e-commerce upstart Temu has been recruiting U.S. sellers to join its fast-growing discount site. Last month, the marketplace opened up, allowing any American brand or individual seller to register to sell on Temu, Modern Retail previously reported.

But Temu isn’t just trying to attract new sellers. Although the company is best known as a place to buy ultra-cheap knockoffs, two brands that spoke separately to Temu representatives during the show were told that Temu is trying to broaden its appeal beyond cheap goods by adding higher quality products to grow -priced items added to its range.

“You mentioned that one of the things Temu is trying to do is to get a little bit more into the upper echelons,” said a brand employee who requested anonymity to discuss private matters. “These days it’s all about growing for everyone. So if they already have the entry-level equipment, the only way to expand is to go up.”

An employee at another brand who spoke to Modern Retail anonymously was also told that Temu is trying to expand beyond cheap goods. “They want to sell everything,” the person said. “Once you do that, it changes your customers’ perception of the Temu brand.”

When reached for comment, Temu did not directly confirm or comment on the extent to which this is a focus of its overall growth strategy, but a company spokesperson said in an emailed statement that Temu “is committed to meeting diverse consumer needs through its offerings.” fulfill”. a wide range of products that balance quality and affordability.”

To illustrate, the spokesperson’s statement included a link to a $300 espresso machine, which appears to be a relative newcomer to the Temu marketplace, having been first reviewed in May this year. The spokesperson also referenced a $2,200 massage chair that appears to be even newer, as its earliest review dates back to September 2024. Both are shipped from local warehouses, a strategy that has become a core focus for Temu as the company looks to compete with Amazon, which accounts for 40% of U.S. e-commerce sales

Shipping goods directly from local U.S. warehouses “allows us to further diversify our offerings and cater to different budgets and preferences, while remaining focused on providing value,” the spokesperson concluded.

Temu’s desire to broaden its appeal is a strategy that other Chinese-backed marketplaces, including Shein and TikTok Shop, have also explored. Last year, the Wall Street Journal reported that fast-fashion retailer Shein was luring luxury brands like Stuart Weitzman and Paul Smith to sell products on its marketplace. Earlier this year, TikTok Shop launched a luxury resale category. Even the so-called “everything store” called Amazon, which once struggled to attract high-end brands to its marketplace, now sells prestige brands like Estée Lauder and Oscar de la Renta.

The strategy also mirrors that of Temu’s foreign counterpart, Pinduoduo, which in 2019 sought to expand beyond cheap goods by subsidizing discounts on high-end products such as the iPhone.

One of the brand representatives who spoke to Temu said the e-commerce platform, known for its addictive gamification and discovery elements, is leveraging its growing popularity among U.S. consumers to get shoppers to spend more . “Temu customers typically spend more than 20 minutes on their site, while Amazon customers spend closer to 10 to 12 minutes on their site,” the person said, citing data shared with them by the Temu representative.

The fact that Temu sponsored the trade show is in itself a signal that the company wants to raise its prices, according to FSNYE’s Rein. “There are no cheap products here,” she said, referring to the brands that took part in the shoe fair. “Everything ranges from inexpensive to luxurious.”

A search for “shoes” on Temu’s website shows the most expensive pair costs $186. Only ten pairs cost more than $100. The cheapest pair, excluding slippers and sandals, appears to be sneakers for $7.49.

Temu has become a familiar face at conferences, particularly those aimed at Amazon merchants, which generate $140 billion a year in sales for the e-commerce giant. In October, Temu sponsored Innovate, a conference for Amazon sellers in New York City. In September, Temu employees hosted a happy hour for merchants attending Amazon’s annual seller conference in Seattle.

When it comes to Amazon sellers, Temu’s aggressive recruiting campaign has started to pay off. According to Marketplace Pulse, five of the top 25 Amazon sellers now sell on Temu. Still, U.S. dealers make up less than 1% of Temu’s estimated 300,000 total sellers.

Temu needs to diversify if it wants to reach more shoppers in the U.S., according to Sky Canaves, a retail analyst at eMarketer. “Temu wants to have a stronger presence and better meet the needs of its consumers by offering a wider range of products with faster delivery, and the only way to achieve this is to recruit more sellers who have inventory in the US,” she said.

This mission is even more important as the de minimis exemption, a trade rule that helps retailers like Temu avoid import duties and taxes, is about to be revised.

“This would help offset the risk of closing the de minimis import tariff gap,” Canaves said.

However, it remains to be seen whether Temu can completely shed its reputation as a flea market. Brands had a mixed reaction to Temu’s presence at the show.

One emerging footwear brand that spoke to Temu said it plans to offer its footwear products, priced at about $60 a pair, on Temu sometime next year. Temu’s high growth and low fees are too tempting to ignore, a brand representative said. In contrast, Amazon’s fees are too high, especially for new sellers, the person added.

However, a representative from a premium Italian leather shoe brand was less enthusiastic about Temu’s value proposition. “We don’t work in fast fashion,” they said.