On November 28, Pinduoduo released its results for the third quarter of 2023 as of September 30. According to the financial report, Pinduoduo's revenue in the third quarter of this year 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%。This excellent earnings report also pushed Pinduoduo's stock price soaring 18% on the day, which made Wall Street sideways.
In the third quarter of the off-season of traditional e-commerce consumption, Pinduoduo was still able to deliver this rare result, which on the one hand reflects that the consumer market does show signs of recovery;On the other hand, it is thanks to the "high-quality development" strategy that Pinduoduo has fully implemented this year.
Zhao Jiazhen, executive director and co-CEO of Pinduoduo Group, has vigorously promoted the high-quality development of Pinduoduo since he took office in April this year, and has also set up a "10 billion ecology" project, hoping to activate high-quality consumption and meet the diversified needs of consumers by creating a high-quality platform ecology and supply services.
After two quarters of tempering, Pinduoduo's path to achieving high-quality consumption has taken shape. Whatever consumers like, Pinduoduo subsidizes. From agricultural and sideline products to beauty and care, and from digital home appliances to sports and outdoor, tens of billions of subsidies cover almost all aspects of consumers' daily needs.
During the harvest festival, Pinduoduo accelerated the upward movement of Huili pomegranates and promoted the villagers to increase their income and become rich. Photo by Li Li.
In addition, while consolidating "more affordable", Pinduoduo is also actively forging "good service". In the third quarter, Pinduoduo continuously lowered the threshold and difficulty for users to achieve consumption upgrades 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", and helped further release consumption potential.
In the author's view, consumption is a fundamental force driving economic growth. As one of the largest e-commerce platforms in China, Pinduoduo's ambition is to better empathize with the widest range of consumers and meet the diversified needs of consumers. At present, consumers are not only interested in a single indicator of brand or service or service, but a comprehensive experience that integrates the dimensions of advantage, supply capacity, service guarantee, fulfillment and distribution.
In the first three quarters, consumption accelerated recovery, and people were willing to pay for a better material and spiritual life. According to the data released by the National Bureau of Statistics, the per capita consumption expenditure of residents in the first half of the year was 12,739 yuan, a nominal increase of 8 over the same period last year4%。But the more important trend is that people want to consume higher quality products, but they don't want to pay a high premium. Brands such as Zhongxuegao and Huaxizi have been condemned by the whole network, which is a typical market stress reaction to "high premium".
The high-quality development of Pinduoduo's practice is a consumer-centric development, and the growth momentum is contained in the process of solving the needs of users for consumption upgrades. The current demand for consumption upgrading is not only about quality, but also about quality, which is the ultimate pursuit of consumers for good prices and good things. "Let consumers buy good, but not expensive" is the core concept of Pinduoduo to create high-quality consumption.
If we review Pinduoduo's Q3 financial report, we will find that in addition to the high-quality development strategy it adheres to, another highlight is the rapid growth of Duoduo's cross-border (temu platform) business in the global market consumption environment.
The scene of the Duoduo cross-border booth at the 2nd Global Digital ** Expo. Photo by Zheng Yu.
Launched in September last year, Duoduo Cross-border leverages the foundation of Pinduoduo's own chain accumulated over the past years to provide consumers in different parts of the world with a direct channel to buy directly from Chinese factories. In just over a year, it has shown a very rapid development momentum. At present, Duoduo's cross-border consumers have spread to more than 40 different countries and regions.
Duoduo has made a lot of cross-border innovations, and innovatively launched new models such as "full custody" and "flexible **", which greatly reduces the cost of traditional foreign trade factories to go overseas, so that thousands of factories in China's industrial belt can directly face consumers and create their own brands.
At present, Duoduo cross-border exports more than 400,000 parcels per day, with an average daily cargo weight of about 600 tons, more than half of which are sent to the US market. In the U.S. market, there are more than 2 million SKUs on the line, and it is expected to reach 4 million categories this year.
Speaking of temu, Chen Lei, chairman and co-CEO of Pinduoduo Group, said at the earnings conference: Although we have expanded our business scope, the temu business is still in the early stages and will face uncertainties. We are excited and curious about the opportunities and challenges presented by international development.
It is true that with the continuous advancement and development of overseas territory, Temu still needs to ride the wind and waves, but Duoduo cross-border has undoubtedly become the second growth engine to boost the rapid development of Pinduoduo, and is helping more and more Chinese enterprises, Chinese factories and brands to successfully go overseas and sell high-quality products from China to global consumers.