On November 28th, Pinduoduo Group released its performance report for the third quarter of 2023. In the quarter, Pinduoduo Group's revenue was 68.84 billion yuan, a year-on-year increase of 93.9%; Realize a net profit of 15.54 billion yuan under the US GAAP standard, with a net profit margin of 22.6%. Both revenue and profit exceeded market expectations.
This financial report not only demonstrates the significant results of Pinduoduo's domestic business embracing high-quality development, but also indirectly reflects that the rapidly expanding international business is gradually growing into Pinduoduo's next growth engine, and provides a new model for China's foreign trade transformation, upgrading, and innovative development.
Chen Lei, Chairman and Co CEO of Pinduoduo Group, stated that, "Although our business outside of China is still very new, we have also made significant progress in the past year. It is built on our years of supply chain accumulation and understanding, aiming to provide consumers from different regions around the world with a direct channel to purchase from factories, a more flexible and personalized supply chain, and a more cost-effective comprehensive shopping experience."
Since its launch in September last year, Duoduo Cross border has gained a deep understanding of the domestic manufacturing supply chain with advantages such as scale, supporting facilities, and comprehensive efficiency. Through innovative models such as full custody and flexible supply, it has simplified the overseas process, lowered the threshold for foreign trade, expanded order channels, and helped brand cultivation, allowing more small and medium-sized foreign trade enterprises to easily embrace the international market.
At present, we are in the midst of the "Black Five" promotion, and Duoduo Cross border continues to launch price subsidy strategies to help industrial belt factories seize the peak season of overseas consumption and regain orders. To ensure stable and orderly operations on the supply side, Duoduo Cross border has been continuously expanding its warehouse layout since March, enhancing its receiving capacity, and increasing its stocking days to enhance its supply capacity. At the same time, the platform also cooperates with shipping companies such as Meisen, Yixing, Dafei, Maersk, and COSCO Shipping to reduce logistics costs and provide more development opportunities for cross-border sellers.
"I have prepared 25 products with a total volume of over 1 million, based on 5 times the sales volume of the same period last year." Liu Wenhai, the "second-generation hat" in Yiwu, Zhejiang Province, participated in the "Black Friday" shopping season of Duoduo Cross border for the second time this year. "Last year's" Black Friday ", Duoduo Cross border only opened a few sites, and I sold 100000 orders. This year, the number of sites has significantly increased, and it is expected that the sales situation will be quite impressive."
As of the end of the third quarter, Duoduo Cross border has penetrated more than 100 manufacturing industry belts in Guangdong, Zhejiang, Shandong, Anhui and other places, promoting high-quality manufacturing products to enter more than 40 countries and regions in North America, Australia, Europe, Asia and other regions. At present, Duoduo Cross border exports over 400000 packages per day, with an average daily weight of around 600 tons,
"Although our reach is relatively broad, we are still in the early stages of a very basic foundation, and there will be many changes." Chen Lei said, "We are full of expectations and curiosity for the development opportunities and challenges overseas. We look forward to working with more manufacturing manufacturers and various partners to learn from each other's strengths and jointly create a new type of supply chain and shopping experience that is suitable for the trend of the times."
It is understood that China's cross-border e-commerce import and export scale exceeded 2 trillion yuan for the first time last year. After more than 10 years of development, cross-border e-commerce has gone from wild growth in the past to a new stage of intensive cultivation today. The new business model of foreign trade represented by Duoduo Cross border has revitalized the potential of traditional foreign trade after contraction. Through integrated services such as data and real integration, brand incubation, logistics support, and resource subsidies, it has accelerated the promotion of Chinese manufacturing to "produce nationwide and sell globally" in the context of global economic downturn, becoming a new engine driving foreign trade growth and even boosting the economy.
In the view of Li Mingtao, the director of the Research Institute of China International E-commerce Center, the new foreign trade model represented by Duoduo Cross border differs from traditional foreign trade in that it establishes a deterministic connection between upstream production and downstream consumers through the application of cutting-edge technologies such as big data, cloud computing, and artificial intelligence. "Through the new commercial infrastructure of cross-border e-commerce platforms, manufacturers can better understand and grasp consumers' needs and changes in demand, adjust products in a timely manner, reduce inventory, and even continuously position their own brands in this process."
"In recent years, the rise of 'Chinese platforms' in cross-border e-commerce has provided a new commercial infrastructure for overseas enterprises. This global channel built by Chinese companies provides more independent and controllable services, marketing, logistics and other support, providing strong support for the transformation of Chinese manufacturing and even the formation of unique global competitiveness." Li Mingtao said.