On November 28, Pinduoduo released its explosive third quarterly report.
The group's revenue in the third quarter was 688400 million yuan, a year-on-year increase of 939%；Achieved GAAP net profit of 155400 million yuan, with a net profit margin of 226%。Prior to that, the market's revenue was 537700 million yuan, adjusted net profit of 1297.4 billion yuan. Therefore, even the most optimistic analysts did not dare to be so optimistic about Pinduoduo's performance report.
As for the reason for the surge in revenue, Zhao Jiazhen, co-CEO of Pinduoduo, said at the financial report meeting that this is no different from the previous quarter, and it is nothing more than the joint result of the continuous improvement of the consumption environment and the implementation of the company's high-quality development strategy, but "the strategic return of high-quality development will come faster than we expected."
Chen Lei, chairman and co-CEO of Pinduoduo, said: "Although our business outside China is still very new, it has also made great progress in the past year. ”
The train runs fast, it all depends on the headband, and the front of the locomotive runs well, and the engine is indispensable. For Pinduoduo, the front and engine have been found.
Duoduo crosses the border, and the sword has just been unsheathedLet's start with the engine.
Although the third-quarter financial report has not yet disclosed Pinduoduo's international business revenue, marketing investment and other data, some institutions believe that the outside world's understanding of Temu is very likely to be wrong. "Since the launch of this new business in September last year, Pinduoduo's gross profit has maintained rapid growth every quarter, which shows that the aggressive momentum of cross-border business not only makes it a new growth engine for Pinduoduo, but also may become Pinduoduo's second largest profit center. ”
Pinduoduo 688 in the third quarterOf the 400 million revenue, it is mainly in Pinduoduo's main station, community** (Duoduo Food) and Duoduo cross-border temu. Among them, the growth of overseas business temu is particularly noteworthy, Huatai ** analysts believe that to a large extent, the high growth of overseas business temu has brought 315 to Pinduoduo's entire transaction revenue15% growth.
Liu Jun, vice president of finance of Pinduoduo, also revealed at the financial report meeting that TEMU has become the next growth engine for Pinduoduo's rapid development, and has also become a key part of the market's stronger expectations for Pinduoduo and driving the growth of stock prices.
For this link, Pinduoduo has been planning for a long time.
In recent years, China's cross-border e-commerce business has grown, and the scale of import and export exceeded 2 trillion yuan for the first time last year. The latest data shows that in the first half of this year, the total import and export volume of China's cross-border e-commerce reached 11 trillion yuan, a year-on-year increase of 16%, and its first-class growth rate is as high as 199%。At present, there are more than 100,000 domestic cross-border e-commerce entities, and the proportion of foreign trade in the import and export scale of cross-border e-commerce goods has risen from less than 1% five years ago to about 5% today, and the first partners are almost all over the world.
In this context, in September 2022, Pinduoduo launched the cross-border e-commerce platform Temu (Duoduo Cross-border). Since then, Pinduoduo's force value in "decision-making, execution and effort" has been full, and data released by Statista in August this year shows that the number of Temu users in the United States has exceeded 100 million. In other words, in less than a year, Temu has turned one-third of the U.S. population into users.
Source: Visual China.
With such rapid results, Pinduoduo has also made great efforts in the first chain. According to the data, as of the end of the third quarter, TEMU has penetrated into more than 100 manufacturing industrial belts in Guangdong, Zhejiang, Shandong, Anhui and other places, and promoted related manufacturing products into more than 40 countries and regions such as North America, Australia, Europe, and Asia.
Temu exports more than 400,000 packages per day, with an average daily cargo weight of about 600 tons, of which more than 50% is destined for the U.S. market. In the United States, more than 2 million SKUs have been launched so far, and it is expected to reach 4 million categories this year.
Analysts believe: "Duoduo cross-border entrepreneurship is from 1 to 10, and the starting point is 1, not 0." Although the management team has repeatedly stated that the international business is still in the early stage, in just one year, Duoduo Cross-border has launched a series of innovative models for the pain points of the domestic manufacturing industry going overseas, such as full custody and flexibility, and it is gaining momentum in the world. This is enough to reflect that the cross-border business is very suitable for the past ability accumulation of the Pinduoduo team, although the new business needs to learn Xi, but the team's learning Xi cost and the organization cost of the first chain are much lower than other companies. ”
At present, it is the "Black Friday" and the year-end promotion time, and Temu continues the "True Fragrance" subsidy policy to help domestic industrial belt factories seize the peak season of overseas consumption, increase the number of orders, and accelerate sales. At the same time, the platform takes the lead in cooperating with COSCO Shipping, Matson, ZIM, CMA CGM, Maersk and other shipping companies to reduce logistics costs and provide more opportunities for domestic cross-border sellers.
The "Double Day" at the end of the year is the peak season for overseas consumption, and Temu will continue to do so, and I believe that it will add a more colorful stroke to the Pinduoduo Four Seasons Report.
The most important thing is that in the future, TEMU's position in Pinduoduo's financial report may be more important, even very important. It's like everyone is a martial arts master, and Pinduoduo suddenly practiced a "new cheat", which cannot be ruled out as a "killer feature".
Therefore, the turmoil in the capital market in the past two days is easy to understand.
The "high-quality development" strategy promotes the policy of deep water areaLet's talk about the locomotive (basic plate).
In April this year, Zhao Jiazhen took office as co-CEO and proposed that Pinduoduo would enter a new stage of fully embracing high-quality development, with improving quality as the primary goal. At that time, the outside world was not optimistic about such a strategy.
However, the "high-quality policy" was subsequently put in place, which was deeply reflected in Pinduoduo's financial report.
The second quarter of this year was Zhao's first full quarter after taking office, and Pinduoduo's performance in the second quarter far exceeded market expectations, with total revenue of 522800 million yuan, a year-on-year increase of 663%。The high-quality development strategy received good market feedback in the early stage, and various measures promoted performance growth.
In the third quarter, Pinduoduo's "high-quality development" strategy changed from "quantity" to "quality", and advanced to the deep-water area of policy policies. The management team of Pinduoduo paid close attention to the implementation from the dimensions of high-quality consumption, high-quality supply, and high-quality ecology, promoted the implementation of various tasks and achieved practical results, and then had three quarterly reports with excellent performance.
So how does Pinduoduo implement its high-quality development strategy?
In order to lead high-quality consumption, Pinduoduo gives full play to the pull effect of the two engines of "multi-affordability" and "good service", "and strives to meet the all-round good experience and increasingly diversified needs of consumers." In the third quarter, Pinduoduo took "more affordable" and "good service" as the two major engines to activate consumption, and continuously lowered the threshold and difficulty for users to achieve consumption upgrading through a series of first-class activities and high-quality services such as "Summer Carnival", "Duoduo Harvest Hall", "Domestic Products Festival", and "Duoduo Reading Month", helping to further release consumption potential.
In order to meet the high-quality supply, Pinduoduo gives full play to its own technical background and advantages, goes deep into the first chain to promote the inclusive technology of agriculture and manufacturing, and continuously promotes the efficient circulation of supply and demand between merchants and consumers. The most praised is that Pinduoduo has made every effort to promote the digital transformation of the agricultural product chain.
For example, Pinduoduo uses big data, cloud computing and distributed artificial intelligence technology to integrate scattered agricultural production capacity and consumer demand for agricultural products, so that agricultural products can break through the limitations of traditional circulation models and reach the national market. This is also the direct reason why Pinduoduo's fruits and other agricultural products are so fragrant.
In order to create a high-quality ecosystem, Pinduoduo has shifted to support high-quality merchants and small and medium-sized enterprises through the 10 billion ecological shift. As mentioned above, through the advance layout of overseas consumption nodes such as Halloween, Christmas, and Black Friday, it has helped Guangdong, Zhejiang, Shandong and other places to build more than 100 industrial belts.
There is also "Project No. 1". Pinduoduo has deepened special activities such as the protection of minors, the governance and protection of books and other copyrighted goods, and upgraded the protection of the legitimate rights and interests of minors from the dimensions of account identification, search and browsing and shopping order restrictions, and positive content guidanceStrictly promote the review of books on the shelves and the punishment of counterfeit shops, consolidate basic management, and promote the construction of a green, healthy, and modern platform ecology.
Consumption recovery boosted,Young people empathize with PinduoduoAfter writing so much, to put it bluntly, the background behind Pinduoduo's third quarterly report is still selling goods, and it is a successful sale.
There is no doubt that Pinduoduo's staggering financial report also proves from the side that its efforts have been recognized by consumers, especially young consumers.
Since the beginning of this year, China's consumption has achieved a rapid recovery, and the total retail sales of consumer goods in the first three quarters 342107 billion yuan, a year-on-year increase of 68%, of which the growth rate of total social zero in September was 09 percentage points, it is expected that under the stabilization of the economy and the further recovery of consumption, the e-commerce platform is expected to maintain rapid growth this year.
There is a very popular saying at the moment called "It's not that down jackets can't afford to buy, but that green coats are more cost-effective". Young people can like the brand's products, and the simple life of high quality and low price is also not refused, they are empathetic consumption, affordable in place, simple functions Pinduoduo is more and more sought after by young people.
The same is true from Pinduoduo.
The second and third quarterly reports, and then the "11.11" battle report, all show this.
This year's Double 11, Pinduoduo doubled in 40 sub-categories, and the number of subsidized orders increased by 107% year-on-year. Pinduoduo's 10 billion subsidized users exceeded 6200 million, the "white-collar" and "middle class" in the first-tier cities have placed orders for more mobile phones, flowers, cat food and health products, the "new middle class" and young people in the new first-tier cities have become the main consumers of light luxury products such as bags and watches, the second and third-tier cities have completed the upgrade of household appliances, and the "Bao Ma" and young people in the small towns below the fourth-tier cities have bought more domestic beauty, national fashion clothing, imported milk powder and wet toilet paper.
In addition, in many series of activities such as "Harvest Festival", "Domestic Products Festival", "Duoduo Reading Month", "National Day Promotion", etc., young people are also practicing high-quality consumption of "you can buy expensive, but you can't buy expensive", and all this completely coincides with Pinduoduo's high-quality development concept.
Chen Lei, chairman and co-CEO of Pinduoduo Group, said that this year is a year of consumption boost, and it is also a year of intensified competition in the e-commerce industry. Pinduoduo will adhere to the high-quality development strategy and maintain its strategic focus.
In recent days, affected by the third quarterly report, Pinduoduo's share price has risen sharply for many days, with a market value of more than 190 billion US dollars, becoming the largest Chinese concept stock in the United States, and it has also been on the hot search.
Pinduoduo stock price recent daily chart.
The pattern of China's e-commerce era is about to change.