Although it is a recent entrant to the Brazilian market, Temu experienced an impressive growth during this year's Black Friday, intensifying the competition with Mercado Livre and Shopee for dominance in app-based e-commerce.
According to data fromAppreach, an agency specialized in advertising for apps, Temu recorded a 3,100% increase in downloads and a 4,100% rise in monthly active users (MAU) in November 2024, compared to the same period last year. This rise is directly linked to an aggressive promotional and viral marketing campaign that boosted the app's popularity in Brazil.
Meanwhile, Mercado Livre maintained its leadership, with a 29.8% increase in downloads and a 23.2% increase in MAU during the same period. The performance consolidates the platform's strength in loyalty and recurrence, demonstrating that the user base remains highly engaged. Shopee also showed positive results, with a 23.5% increase in downloads and a 20.3% increase in MAU, standing out for its balance between user acquisition and retention.
Temu's growth was the most significant among the three apps, but part of this is due to its very low initial user base, since the app only began operations in Brazil in 2024. In contrast, Mercado Livre and Shopee showed more stable growth curves, reinforcing their position as established leaders.
"The Brazilian market is experiencing a period of intense competitiveness in e-commerce. Temu has arrived strongly, betting on aggressive promotional campaigns, but Mercado Livre and Shopee remain references in long-term retention and engagement," comments André Sales, CMO of Appreach.
Acquisition and retention strategies
The strategies varied among the competitors. Mercado Livre focused on its loyal base, using loyalty and engagement programs to increase recurrence. Shopee has strengthened its presence with seasonal promotions and ease of use. Temu, on the other hand, bet on its aggressive market entry by offering massive discounts and heavily investing in digital marketing.
"Temu has brought a disruptive approach but needs to prove its long-term retention capacity. Meanwhile, Mercado Livre continues to lead in MAU, demonstrating its strength as the preferred platform for Brazilians," concludes Sales.
With Black Friday marking the start of the peak season for retail, the competition between Shopee, Mercado Livre, and Temu is expected to continue energizing the market. The consolidation of leadership and the acquisition of new users will be crucial in the upcoming major promotional dates.
