Retail in Asia

In Sectors

Temu parent PDD Holdings posts Q3 sales surge as Chinese shoppers seek discounts

Temu parent PDD Holdings reported a 94 percent uptick in sales to RMB 68.84 billion (USD 9.44  billion) for the third quarter, as price-conscious shoppers in Asia took advantage of the firm’s affordable shopping platforms.

SEE ALSO: Shein acquires Missguided, forms new JV with Nitin Passi

PDD, home to Chinese online discount retailer Pinduoduo as well as cross-border platform Temu, said third-quarter revenues from online marketing services and others were RMB 39.69 billion, up 39 percent, while revenues from transaction services were RMB 29.15 billion, surging 315 percent compared to the prior-year quarter.

Net income attributable to ordinary shareholders in the quarter was RMB 15.54 billion, an increase of 47 percent.

Deep discounts ahead of the Singles Day shopping event in China helped lift demand for products on Pinduoduo, which was able to capture more value-conscious consumers across mainland China.

Likewise, Shein rival Temu, first launched in the United States in September last year, continued to gain in popularity among price-conscious consumers. So far, it has entered more than 40 countries in North America, Europe and Asia, as well as Australia and New Zealand, according to PDD.

“We are dedicated to generating value through innovations, which forms the foundation of our high-quality development,” said Lei Chen, chairman and co-chief executive officer of PDD Holdings.

“We continued to invest decisively in areas such as agritech, supply chain technology, and core R&D capabilities. Through these efforts, we aim to create our unique value.”

The retail market in China was expected to bounce back better than ever when strict Covid-19 curbs were lifted in January this year. However, Chinese consumers have remained cautious as the country faces a property market downturn and record youth unemployment, and as well as consumer shift to value-centric products over luxury goods in the face of economic headwinds.

Chinese retail sales in September rose 5.5 percent, following 4.6 percent growth in August, according to government data.