Following a 4 percent growth on the NASDAQ on November 29, the market value of Pinduoduo, China’s leading e-commerce platform for the first time exceeded that of its biggest rival Alibaba.
According to media reports, Pinduoduo’s market value reached a peak of US$192.2 billion in intra-day trading, US$300 million more than that of Alibaba.
Analysts attributed Pinduoduo’s rise to the growth in revenue on its blockbuster app Temu, a cross-border e-commerce platform which launched in September 2022 and is now popular in 47 countries.
Pinduoduo provides producers with services related to cross-border operations, storage and logistics. The platform boosts visibility and offers financial support to low-priced products. Domestically launched in 2015, Pinduoduo rapidly gained popularity with a wide variety of cheap products. Although severely criticized for rampant copycat and low-quality products at the beginning, the platform soon managed to outperform some of its rivals by its vast coverage of villages and counties. Later it focused on improving services and providing low-cost but high-quality products.
Pinduoduo’s Q3 fiscal reports showed that its revenue was 68.8 billion yuan(US$9.6bn), a 93.9 percent growth year-on-year, with a net profit rate of 22.6 percent.
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