Despite being newly arrived in the Brazilian market, Temu has experienced impressive growth in this year’s Black Friday, intensifying the competition with Mercado Livre and Shopee for e-commerce app dominance.
According to data from Appreach, an agency specialized in advertising for apps, Temu 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 growth is directly linked to an aggressive campaign of promotions and viral marketing 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. This performance solidifies the platform’s strength in user loyalty and retention, 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, as the app only began its operations in Brazil in 2024. In contrast, Mercado Livre and Shopee showed more stable growth curves, reinforcing their positioning as established leaders.
“The Brazilian market is experiencing a moment of intense competitiveness in e-commerce. Temu arrived strongly, betting on aggressive promotional campaigns, but Mercado Livre and Shopee continue to be references in 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 base, using loyalty programs and engagement to increase recurrence. Meanwhile, Shopee reinforced its presence with seasonal promotions and user-friendliness. On the other hand, Temu bet on its aggressive entry into the market, offering massive discounts and heavily investing in digital marketing.
“Temu brought a disruptive approach but needs to prove its long-term retention capabilities. Meanwhile, Mercado Livre continues to lead in Monthly Active Users (MAU), demonstrating its strength as the preferred platform by Brazilians,” Sales concludes.
With Black Friday marking the beginning of the high season for retail, the competition among Shopee, Mercado Livre, and Temu is expected to continue driving the market. Consolidating leadership and acquiring new users will be crucial in the upcoming major promotional dates.
