Bargain e$-$commerce company Temu has had a whirlwind $2023.$

Quietly launching its app in September $2022,$ it only took the company a few weeks to top app store charts, edging out Amazon

$,$ Walmart

and even fast$-$fashion brand Shein. By February $2023,$ the $5-$month$-$old company made its TV debut during Super Bowl LVII, airing two commercial spots totaling an estimated $$14$ million.

Temu$$s popularity is largely due to its ultra$-$cheap knockoffs. Users can get an Apple Watch dupe for $$10,$ Yeezy knockoffs for $$4\mathrm{.}99$ and gaming consoles for $$20.$ On top of the steep discounts, users are bombarded by coupons, free shipping countdowns, flash sales and discount wheels.

While on its face the company looks to be a Boston$-$based startup, it is actually backed by a well$-$known name in the Chinese retail space, Pinduoduo.

$$China is really the linchpin in Temu$$s strategy,$$ said Neil Saunders, managing director of GlobalData Retail. $$A lot of the products that are sold on Temu are manufactured in China. They$$re shipped directly from China to the U$.$S$.$ So those labor costs compared to manufacturing in the U$.$S$.$ and elsewhere are really low.$$

Temu$$s rise in popularity has also courted scrutiny from the U$.$S$.$ government, accusing the website of exploiting de minimis shipping rules to undercut U$.$S$.$ retailers. Under de minimis rules, shipments valued under $$800$ are not subject to duty taxes and undergo minimal customs checks.

Beyond that, a U$.$S$.$ House committee accused the retailer of violating U$.$S$.$ import law by using forced labor to supply its products.

Temu and Pinduoduo did not respond to CNBC$$s requests for comment

Watch the video above to learn what$$s behind Temu$$s success and what could disrupt the retailer$$s massive growth in the U$.$S$.$

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