TEMU’s Offensive in Brazil: From Gamification to the Local-to-Local Model

In just over a year of operations, the Chinese retailer has become the country’s second-largest e-commerce player, challenging Mercado Livre and Shopee while expanding its logistics presence through partners.

Colin Huang, founder of TEMU

By: SiiLA News

10/06/2025

The e-commerce market is expanding every day. Mercado Livre, for instance, is the largest warehouse occupier in Brazil and a fundamental player in the country’s industrial property sector. Other major names are also part of Brazil’s logistics ecosystem, such as Shopee, Shein, and, more recently, TEMU.

As one of China’s leading retailers, TEMU began its global expansion and entered Brazil in June 2024. Today, just over a year later, the company is already the second-largest e-commerce platform in the country, behind only Mercado Livre, according to data from Conversion’s E-commerce Sectors in Brazil report.

Conversion’s data shows that the app surpassed Shopee in April this year and even overtook Mercado Livre in July in terms of monthly visits.

Its popularity is no coincidence. Under an aggressive gamification strategy—a process that incorporates game-like elements into the shopping experience, rewarding users with promotions and points—TEMU has become synonymous with online retail, even without any physical operation in Brazil.

Where is TEMU?

TEMU belongs to PDD Holdings, a multinational conglomerate that reported US$4.29 billion in net income and US$14.51 billion in revenue in the second quarter of 2025.

In Brazil, TEMU is represented by Whaleco Brasil, registered under a fiscal address in a coworking space on Avenida Paulista. Despite this, the company does not directly lease warehouses or offices.

This pattern is international: the Chinese retailer does not operate directly but outsources through logistics operators. According to its platform, deliveries in Brazil are carried out by Correios and Anjun Express.

Outsourcing operations

TEMU is not the only company that follows this model. Adidas, for example, uses Cy.Log Modal Extrema as its distribution center, but the facility is leased and operated by DHL Express. The German sportswear retailer previously occupied a property in São Paulo but later abandoned direct operations to outsource its logistics.

Now, TEMU has also begun operating locally, selling products directly from Brazilian stores. This model, called local-to-local, is already active in more than 30 markets, including the United States, Germany, France, Italy, Spain, and Mexico.

“With TEMU’s local-to-local business initiative, Brazilian companies gain access to a new low-cost channel to reach millions of consumers, while shoppers benefit from faster deliveries and a wider range of products,” the company highlights.

TEMU’s logistics partner, Anjun Express, currently occupies around 42,600 sq.m. in class A+, A, and B industrial properties across Brazil. Meanwhile, state-owned Correios leases 89,900 sq.m. in industrial properties, excluding standalone warehouses and smaller-scale operations.

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