Temu is in trouble: Wish was sold for pennies

San Francisco-based Wish, which was founded in 2010, focused on cheap products from Chinese manufacturers. The company’s business policy was aimed at customers being willing to accept longer delivery times in exchange for discounted prices. The company has spent heavily on advertising and sponsorship deals on digital platforms, such as with the Los Angeles Lakers football team.

However, Wish posted heavy losses and announced last November that it was exploring “strategic alternatives” after the company’s CEO resigned. The current acquisition shows that it is difficult to maintain growth in the Chinese e-commerce market amid competition.