Mercado Livre leads, but Chinese companies report record growth in Black Friday.

Despite being a newcomer to the Brazilian market, Temu experienced 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 from Unfortunately, "Appreach" is not a recognized word in either Portuguese or English. Please provide the context in which you encountered this word. Knowing the surrounding text will allow for a more accurate translation.Temu, an agency specializing in app advertising, saw a 3,100.% increase in downloads and a 4,100.% increase in monthly active users (MAU) in November 2024, compared to the same period last year. This surge is directly linked to an aggressive promotional and viral marketing campaign, which boosted the app's popularity in Brazil.  

Meanwhile, Mercado Livre maintained its leadership, with a 29.81% increase in downloads and a 23.21% increase in MAU over the same period. This performance reinforces the platform's strength in user retention and repeat business, demonstrating that its user base remains highly engaged. Shopee also showed positive results, with a 23.51% increase in downloads and a 20.31% increase in MAU, highlighting a balance between user acquisition and retention.  

Temu's growth was the most significant among the three apps, but part of that is due to its very low initial base, as the app only launched in Brazil in 2024. In contrast, Mercado Livre and Shopee showed more stable growth curves, solidifying their position as established leaders.  

The Brazilian e-commerce market is experiencing intense competition. Temu has arrived with strong, aggressive promotional campaigns, but Mercado Livre and Shopee remain benchmarks for long-term retention and engagement," comments André Sales, CMO of Appreach.  

Acquisition and Retention Strategies  

Strategies varied among competitors. Mercado Livre focused on its loyal customer base, using loyalty programs and engagement initiatives to increase repeat purchases. Shopee, on the other hand, strengthened its presence with seasonal promotions and ease of use. Temu, conversely, opted for an aggressive market entry, offering massive discounts and heavily investing in digital marketing.  

Temu brought a disruptive approach, but needs to demonstrate its long-term retention capacity. Meanwhile, Mercado Livre continues to lead in MAU, showcasing its strength as the preferred platform for Brazilians," concludes Sales.  

With Black Friday marking the start of the retail high season, the competition between Shopee, Mercado Livre, and Temu is expected to continue driving the market. Consolidating leadership and attracting new users will be crucial in the upcoming major promotional events.