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 e-commerce via apps.
According to data from Appreach , an agency specializing in app advertising, Temu registered a 3,100% increase in downloads and a 4,100% increase in monthly active users (MAU) in November 2024, compared to the same period of the previous year. This rise is directly linked to an aggressive promotional and viral marketing campaign, which boosted the app's popularity in Brazil.
Meanwhile, Mercado Libre maintained its leadership, with a 29.8% growth in downloads and a 23.2% increase in MAU during the same period. This performance consolidates the platform's strength in customer loyalty and repeat business, demonstrating that its user base remains highly engaged. Shopee also presented 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 small initial user base, since the app only started operating 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 moment of intense competitiveness in e-commerce. Temu arrived with force, betting on aggressive promotional campaigns, but Mercado Livre and Shopee remain the benchmarks in long-term retention and engagement,” comments André Sales, CMO of Appreach.
Acquisition and retention strategies
Strategies varied among competitors. Mercado Libre focused on its loyal customer base, using loyalty and engagement programs to increase repeat business. Shopee reinforced its presence with seasonal promotions and ease of use. Temu, on the other hand, opted for an aggressive market entry, offering massive discounts and investing heavily in digital marketing.
“Temu brought a disruptive approach, but needs to prove its long-term retention capacity. Meanwhile, Mercado Libre 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 driving the market. Consolidating leadership and acquiring new users will be crucial in upcoming major promotional events.
