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A MZ123 learned that on November 28, Pinduoduo released its third-quarter 2022 financial report. The financial report shows that Pinduoduo's total revenue in the third quarter was 35.5 billion yuan, a year-on-year increase of 65.1%; the net profit attributable to ordinary shareholders was 10.586 billion yuan, a year-on-year increase of 546%. It is worth noting that in the third quarter, Pinduoduo once again increased its investment in marketing, with its sales and marketing expenses reaching 14.05 billion yuan, a year-on-year increase of 40%. Industry insiders pointed out that Pinduoduo's marketing investment is closely related to Temu, a cross-border e-commerce platform launched in September. Whether it is the ultra-low-price flash sales when it was first launched, or the American version of the "cut-a-dice" model launched later, both require a considerable amount of marketing subsidies. Recently, during the Black Friday online promotion when major e-commerce platforms competed for traffic, the fact that Temu, which is well versed in marketing, has entered a period of rapid traffic growth has been confirmed again. Temu tops the shopping download list again during Black Friday promotion
It is learned that after becoming the number one shopping application in the US App Store since its launch in September, Temu once again topped the list of downloaded applications in all categories of the US AppStore on November 12 , and has topped the list for two consecutive weeks, including the Black Friday Cyber Monday shopping week .
▲ Image from Data.ai To date, Temu has been downloaded more than 5 million times in the United States, according to app analytics firm Sensor Tower . Although the download ranking cannot objectively indicate the user retention rate of a platform, it also confirms to a certain extent that TEMU is continuously expanding its influence in the highly competitive US market. The reason for this is closely related to the three powerful weapons revealed by TEMU : ultra-low price promotions, ultimate service to users, and viral fission marketing. Take the Black Friday promotion, an important shopping event this year, as an example: According to sources, during Black Friday, the price of similar products on Temu was generally 10% of that on Amazon. In the same product category, Temu's discounts were even more ruthless than SHEIN, which is already famous for its low prices - the price of the same windbreaker on Temu was even as low as $1.5. Similarweb data shows that Temu's total visits have continued to surge in the past three months. As of October, Temu's computer traffic has soared 188.8% compared to the previous month . November's data has not yet been released, but judging from its consecutive top-ranking downloads, traffic is bound to show further growth. This year, under the environment of high inflation, Temu's overseas expansion policy meets the needs of overseas consumers and is advancing at an astonishing momentum. So far, although Temu has not officially announced its specific performance, judging from the sales of tens of thousands of products on its best-selling list, it is also very impressive. However, unlike Temu's ever-increasing traffic, sellers' opinions on Temu are polarized. The products are low-priced and free shipping, so the sellers’ profits are cut!
The survey data shows that among the 497 sellers surveyed, 12% have already settled in Temu, 33% are optimistic about Temu and are interested in settling in, but the proportion of sellers who think Temu is a flash in the pan and have no plans to settle in the platform is as high as 55%.
That is, 45% of sellers believe that Temu will have a positive future: “With the downward trend in consumption, Temu may be able to carve out a niche in the low-end consumer market.” “Not having to pay entry fees is very convenient for some novice sellers.” "As long as the products are selected well, Temu's all-inclusive model is still very suitable for factory-type sellers." 55% of sellers think Temu is not suitable for settlement: “Temu’s transaction amount is about $25 per transaction, which is much lower than SHEIN’s $75.” "TEMU's prices at the front desk are indeed low enough. How long can this crazy subsidy to grab the market continue?" "The profit margin is too small. If the price is not low enough, not only will the platform not accept it, but the goods will be returned if they cannot be sold, and the platform will have to pay the money." "The TEMU model is obviously more suitable for suppliers and factory-type sellers, so other sellers should forget about it." Overall, Temu's low-price strategy has indeed successfully opened up overseas markets, but behind its extremely low-price model, sellers are struggling to move forward with "cut profits." In addition, during this year's Black Friday, in response to the joke that "Temu has snatched all Amazon orders", some sellers pointed out that from the data collected, Temu has more impact on the low-end consumer category market with lower average order value , and the overall Amazon market has not been greatly affected. In terms of terminal delivery, there is still an insurmountable gap between Temu and Amazon. It can be seen that if Pinduoduo wants to further seize the overseas consumer market in the future, it will still face many challenges. Recently, an investor asked a question on the Interactive Yi platform: Pinduoduo is suspected to be planning to acquire Gearbest, a subsidiary of Cross-Border Communications. It is understood that Gearbest is a B2C self-operated platform under Cross-Border Link. The number of registered users exceeded 40 million in 2018. The platform had an average monthly visit of 189 million in 2020. It ranks among the top 30 in global e-commerce website traffic and among the top five e-commerce websites in many overseas developed countries. Its annual revenue is expected to even reach 4 billion yuan. Judging from the data accumulated over the years, the value of Gearbest is immeasurable. If Pinduoduo can get the support of this platform, its overseas expansion will surely be smoother. However, in response to this rumor, Kuaishou currently responded that it has no intention of selling Gearbest. However, industry insiders analyzed that it was deeply involved in the equity acquisition dispute with SHEIN and believed that if Pinduoduo offered enough benefits, the outcome would still be uncertain. In the future, facing the fierce competition in the US e-commerce market, can TEMU break out of the low-end consumer market and shake up old giants such as Amazon and eBay? Only time will tell.
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