On August 29, e-commerce company Pinduoduo released its 2023 second quarter results report.。Report data shows that Pinduoduo Q2 revenue is 522.8.1 billion yuan (RMB, the same below), up 66% year-on-year, far exceeding market expectations of 432.800 million yuan; adjusted net profit of 152.6.9 billion yuan, up 42% year-on-year; also greatly exceeded market expectations of 85.9.9 billion yuan。

By business, Pinduoduo Q2 online marketing services and other revenue of 379.$300 million, up 50% year-on-year; transaction services revenue of 143.500 million yuan, up 131% year-on-year。Online marketing is the advertising business, trading services is the commission, the rise in commissions proves that the brand business, fast group, more live, TEMU and so on are growing rapidly.。

In response to the surge in performance, Zhao Jiazhen, Executive Director and CEO of Pinduoduo, explained: "In the last year, we have seen a positive shift in consumer sentiment, leading to increased demand in various product industries, and we are committed to high-quality development and creating value for every party in the ecosystem."。

It's worth noting that Pinduoduo rose 14 percent in premarket trading yesterday, boosted by strong results..3% and continued to rise after the U.S. stock market opened last night, eventually closing up 15.43% at 93.$22, market value increased by nearly $16.6 billion overnight。

Chen Lei, Chairman and Co-CEO of Pinduoduo Group, said: "In the second quarter, we observed a continuous increase in consumer demand for multiple product categories, and this positive shift was mainly due to effective macro policies and consumer-boosting promotions.。"

Major banks have raised their target prices and ratings in response to Fiduo's Q2 performance。Among them, Bank of America analysts believe that the company's second-quarter performance is excellent due to continued improvement in consumer confidence and a gradual recovery in demand.。Pinduoduo has increased subsidies in this year's "618" campaign to stimulate consumer demand for household appliances, smartphones, cosmetics and fresh agricultural products.。In horizontal comparison, Pinduoduo's growth momentum is much faster than its peers。

Morgan Stanley says Pinduoduo's GMV improved significantly in the second quarter。As the image of "good quality and low price" established by Pinduoduo for a long time is deeply recognized by consumers, the consumption performance on the Pinduoduo platform is much stronger than that of its peers.。Analysts expect this growth gap to continue in the second half of the year.。

Fight a lot of killer: high quality development GMV andARPU

In the post-performance conference call, Zhao Jiazhen, executive director and co-CEO of the Group, said, "In recent years, we have gradually completed this transformation from fast to stable, from marketing-driven to research and development-driven.。Since the first half of this year, we have comprehensively started the strategy of high-quality development and entered a new chapter of high-quality development.。"

As a company that currently has no proprietary business in the country, the growth in commissions and advertising modules ultimately points to a complete improvement in GMV.。High-quality development strategy, can be popularly understood as, the focus of the main station will be on improving the user's ARPU in the future.。Increase the consumption scale of existing users on the platform。

After all, compared with Internet users, the penetration space has become smaller.。By the end of 2022, the number of active sellers per user year reached 9.100 million, up 10% year-on-year。As of June 2023, the number of Internet users in China is only 10.7.9 billion。

The tens of billions of subsidies, tens of billions of agricultural research and so on launched by the main station of Pinduoduo are also based on the needs of users as the core, to enhance the average annual consumption of users.。Pinduoduo in the past to establish the image of "low-cost good things," users have been accustomed to open the platform to compare prices, in the past, the products on the platform are only regarded as low-cost substitutes, high customer unit price of goods users will still hesitate.。

Attracting users to spend on high customer unit price products is the key to increasing ARPU (average revenue per user) and GMV (total commodity transactions)。This year, tens of billions of subsidies in the competition, but also on digital home appliances, beauty, fresh, clothing and other full categories of goods to significantly supplement, further improve the user's mind.。It has also been effective at present.。"In the second quarter, we observed continued improvement in consumer demand for multiple product categories.。Chen Lei, Chairman and Co-CEO of Pinduoduo Group, said, "This positive shift is mainly due to effective macro policies and promotional activities to help consumption.。"

At the same time, the new brands established in the past are tapping into the characteristic supply from the industrial belt.。The unit price of white brand goods is low and the brand awareness is insufficient.。It is also difficult to buy traffic in shelf e-commerce and live e-commerce for long-term operational competition, requiring precise traffic subsidies and deterministic growth.。Industrial belt merchants have manufacturing capabilities, can be produced on demand, but also need branding to enhance user trust.。Pinduoduo also needs further expansion of user awareness, and the 10 billion subsidy has already yielded results.。

At the beginning of its establishment, 90% of the products on Pinduoduo were white brand products, and the structure has changed.。Huaan Securities observation data show that as of November 2022, the proportion of GMV of third-party brand merchants has been close to 33%, while the proportion of GMV of white and new brand merchants is 67%.。Brands, industrial belts out of the brand, is helping to fight a lot of ARPU upward。

In addition to the branding strategy, agricultural products that are close to people's livelihoods have always been the background color of Pinduoduo.。Agricultural products used to have a low online rate because of non-standard and high transportation requirements.。Q2 More than 10 billion subsidies to increase subsidies for agricultural products, the sales of agricultural products increased by 80% year-on-year;。