Pinduoduo posted a 44% revenue growth in Q1. New initiatives and support for small merchants main initiatives
The novel coronavirus outbreak has forced people to practice social distancing and work from home, which is a boon for online food orders, teleconferencing, telemedicine and e-learning and daily essentials. Chinese e-commerce company Pinduoduo has reported a 44% year-on-year growth with total revenue reaching 6.54 billion yuan ($923.8 million) in the first quarter of 2020.
Discount group-buying site Pinduoduo reported revenue of $923.8 million. Its net loss widened to 4.12 billion yuan in the quarter ended March 31 from 1.88 billion yuan a year earlier. The five-year-old marketplace has attracted 628 million active buyers, an increase of 42% year-on-year.
“Despite the outbreak and seasonality, we were able to ship on average 50 million daily orders in March to meet our users’ needs,” said David Liu, Pinduoduo’s vice president for strategy. “As the economy worldwide regains its foothold, we are seeing opportunities for investments and partnerships such as our recent investment in GOME Retail Holdings. Our strong balance sheet allows us to act quickly on such opportunities.”
© Weibo. Although Taobao and JD.com are still the e-commerce market leaders, Pinduoduo is the app that benefits from the highest loyalty rate.
The company collaborated with local governments in Guangdong, Fujian, Zhejiang and Shandong provinces where the country’s key production centers are located to promote locally produced specialties through livestreaming events. “As of April 30, total order number originating from these events reached 49 million,” Liu said. “We have signed strategic cooperation agreements with these local governments to continue our support for high-quality local manufacturers and merchants, who we believe can become strong partners for our C2M initiatives over the long term.”
Recently Pinduoduo launched a series of initiatives due to diversify its business. In mid April, Shanghai – based e-commerce platform launched a new WeChat mini program called “Duoduo Biyou” – Duoduo Compare the Premium. The platform sells high-end products recommended by lifestyle influencers. Users will be able to compare high quality products, read reviews and purchase them from a built-in store. In March 2020, during the forced lockdown in China, Pinduoduo released Kuai Tuan Tuan – Fast Group Purchase – a location-based team purchase solution that connects consumers and their neighborhood shops.
According to the platform, Kuai Tuan Tuan has helped more than 10,000 neighborhood shops, by giving them online access to consumers in their communities. Moreover, Kuai Tuan Tuan allows neighbors living in the same housing development to team up to buy groceries and daily necessities from nearby shops and merchants. .