Temu Owner Pinduoduo Says Triples Net Profit In First Quarter

Chinese e-commerce giant Pinduoduo announced Wednesday its net profit for the first quarter more than tripled, as the Temu owner continues to boost its competitiveness in its home market and abroad

Beijing, (APP - UrduPoint / Pakistan Point News - 22nd May, 2024) Chinese e-commerce giant Pinduoduo announced Wednesday its net profit for the first quarter more than tripled, as the Temu owner continues to boost its competitiveness in its home market and abroad.

Pinduoduo is one of China's leading online retailers -- owing largely to its success in reaching consumers in rural areas with a diverse offering of low-cost products.

The company's overseas platform, Temu, has surged since its September 2022 launch to become one of the most popular online shopping sites in the United States, propelled by a marketing strategy that featured multiple prime-time Super Bowl advertisements.

Pinduoduo said net profit for the first three months of 2024 was $3.88 billion, up 246 percent from the same period last year.

The Shanghai-based firm added that sales in the first quarter were about $11.

2 billion, an increase of 131 percent from the same period in 2023.

Temu expanded last year into the EU market, where it says its shopping app amassed an average of around 75 million monthly active users in the 27-country bloc.

But the shopping app's rise has also encountered turbulence. In March, a promotional campaign in Britain and France backfired due to concerns over data privacy.

In April, regulators in South Korea opened an investigation into Temu on suspicion of unfair practices including false advertising and poor product quality.

Earlier this month, European consumer rights groups accused it of using manipulative sales techniques and lacking transparency about traders on the platform.