Pinduoduo Inc. (PDD) has shown impressive performance in the third quarter of 2023, driven by significant growth from its international expansion.
Since November 2022, PDD has extended its cross-border business to over 39 countries, including the US, Europe, and Southeast Asia. In 3Q23, PDD's overseas Gross Merchandise Volume (GMV) is expected to exceed US$5 billion.
The company's strategy of offering low-priced products has been successful in capturing market share globally. PDD has effectively shifted its image from being associated with low quality and low prices to just low prices, with quality no longer being a concern.
In terms of domestic performance, PDD's total GMV in China is projected to reach RMB 971.8 billion in 3Q23, with a significant contribution from DuoDuo Grocery and Temu, pushing the total global GMV to approximately RMB 1,044.7 billion. This represents a 27.5% year-over-year growth. Key product categories like Apparel & Accessories and Food have shown robust growth.
Additionally, Temu has maintained its top position in app downloads in the U.S. and Canada shopping category and has recently expanded into the Philippines, marking its foray into Southeast Asia.
Temu's GMV for 3Q23 is estimated at RMB 35 billion, a 69% quarter-over-quarter increase. This rapid expansion and strong performance, especially during the current economic downturn, position PDD as a go-to platform for bargains.
