Pinduoduo transaction revenue surges 315% as Chinese consumers hunt for bargains
Summary
Consumers in China are hunting for bargains when they spend, the latest earnings from online retailers show. Pinduoduo management said it was able to reach consumers in more than 40 countries but described its global business as "still in a very early stage," according to a transcript accessed through FactSet. In October, JPMorgan estimated that despite losses, Temu this year will generate gross merchandise volume of 70 billion yuan ($957 million) — and more than double in 2024. Launched in the U.S. in September last year, Temu was PDDs first major push outside of China and the app quickly found success among budget-conscious consumers. In just a few weeks, Temu rose to the top of app stores and subsequently expanded rapidly across countries such as Australia, New Zealand, France, Italy, Germany, the Netherlands, Spain, and the U.K. Pinduoduos surging revenue contrasts with far slower growth in the third quarter for Chinese e-commerce giants Alibaba and JD.com , which tend to sell higher-priced items and remain industry heavyweights.