These estimates are an indication that the company’s promotional offers and discounts are not enough to attract consumers
The Chinese group PDD Holdings, which has the popular e-commerce platform Temu and is the parent company of the platform Pinduoduo which since 2015 has specialized in offering low-priced products, missed market estimates for its third-quarter revenue on Thursday, a sign that the company’s promotions and discounts are not enough to attract consumers to its e-commerce platform. of trade.
Shares in US-listed PDD Group fell more than 14% in premarket trading.
Higher youth unemployment and the housing crisis have weighed on consumer confidence, hitting sales at Pinduoduo, PDD’s domestic online shopping site, while e-commerce majors Alibaba and JD.com also reported a tepid quarter in terms of sales increases.
PDD Group’s revenue rose 44 percent to 99.35 billion yuan ($13.72 billion) in the third quarter ended Sept. 30.
Its net profit increased to 24.98 billion. yuan from 15.54 billion yuan in the same period last year.
Source: Skai
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