Temu owner misses sales forecast as China economy slows

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Temu owner misses sales forecast as China economy slows

PDD Holdings, the ******** owner of online shopping platforms Temu and Pinduoduo, reported disappointing sales and profit, as ******** consumers continued to hold back amid an economic slowdown.

US-listed shares of the e-commerce giant fell nearly 11% on Thursday following the announcement.

It comes after PDD’s main rivals in its home market, Alibaba and JD.COM, also posted underwhelming results in the September quarter.

Consumer confidence in China has taken a hit from a crisis in the country’s property sector and higher levels of youth unemployment.

In the quarter that ended in September, PDD’s revenue reached 99.35bn yuan ($13.7bn, £10.9bn). That is below analyst forecasts of around 102.8bn yuan.

It is the second quarter in a row that PDD misses analyst estimates, after years of fast growth.

“Our topline growth further moderated quarter-on-quarter amid intensified competition and ongoing external challenges,” said Jun Liu, VP of Finance of PDD Holdings.

While PDD’s ******** e-commerce platform, Pinduoduo, has become popular because of its focus on low-cost and heavily discounted products, a growing number of rivals have been adopting similar strategies, triggering a price war.

Meanwhile, its thriving global e-commerce platform, Temu, is also facing problems overseas.

“There’s uncertainty on potential tariff change and increasing pushback from more countries related to its ‘cheap’ prices,” said Alicia Yap, an equity research analyst at Citi, before the results were announced.

Last week, Vietnamese authorities said Temu and Shein needed to register with the government before the end of the month or face a ban.

In October, Indonesia ordered

This is the hidden content, please

• Sign In
• or
• Sign Up

and Apple to remove Temu from their app stores in a bid to protect the country’s own retailers.

The EU has also launched an investigation into whether the ******** e-commerce platform facilitated the ***** of ******** products that could lead to steep fines.

And, in the US, President-elect Donald Trump has vowed to raise tariffs on imports of ******** goods, potentially removing Temu’s competitive advantage by driving the prices of its super-cheap products.

This is the hidden content, please

• Sign In
• or
• Sign Up

#Temu #owner #misses #sales #forecast #China #economy #slows

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up