PDD Holdings, the multinational commerce group that owns and operates shopping platforms Pinduoduo and Temu, saw its revenue double year-over-year as consumers sought “value for money.”
The company’s total revenues in the fourth quarter of 2023 were $12.5 billion, up 123% from the same quarter a year earlier, PDD Holdings said in a Wednesday (March 20) press release.
“In the fourth quarter, we saw growing demand driven by encouraging consumer sentiment,” Jiazhen Zhao, executive director and co-CEO of PDD Holdings, said in the release. “We will continue our high-quality development strategy, stay dedicated to offer great value and exceptional service, and keep building thriving communities that can benefit all.”
The company’s strategy has included broadening the selection of quality products sold on its platforms and focusing its promotional efforts on premium consumer goods, Zhao said Wednesday during the company’s quarterly earnings call. Those goods include trending national brands, imported goods and high-quality products.
PDD Holdings’ flash sale channel also helps boost the sales of the merchants on its platforms, Zhao said.
In 2024, the company will continue to expand the variety of products and services offered on its platform, maintain a “value for money” outlook and upgrade the shopping experience it delivers to consumers, Zhao said. It will also adapt to changing consumer demands with both its product offerings and tailored promotional events around holidays and seasons.
PDD Holdings’ fourth-quarter revenues included $6.9 billion from online marketing services and $5.7 billion from transaction services, according to the company’s Wednesday press release. Those totals were up 57% and 357%, respectively, from the same quarter in 2022.
“2023 represents a pivotal chapter in our corporate history as we transition towards high-quality development,” Lei Chen, chairman and co-CEO of PDD Holdings, said in the release. “In 2024, we remain dedicated to further improving consumer experiences, enhancing technology innovations and generating positive impacts in our communities.”
PYMNTS reported in October that value-focused retailers like Pinduoduo that cater to budget-conscious Chinese consumers had seen their sales soar. At the time, Chinese consumers had become more conscious of cutting costs and seeking out affordable options.
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