Pinduoduo doubles agricultural GMV to record 270 billion yuan in 2020
March 02 2021 - 2:15AM
Pinduoduo Inc. (“Pinduoduo”, or the “Company”) (NASDAQ: PDD),
China’s largest agriculture platform, doubled the value of
agricultural orders it handled last year, exceeding the company’s
earlier estimate as the pandemic pushed more people to order food
and groceries online.
The Nasdaq-listed company recorded more than 270 billion yuan
($42 billion) in agriculture-related GMV in 2020, up from 136
billion yuan in 2019. The firm had said last December it was on
track to hit 250 billion yuan in GMV for the category.
Sales were helped in part by the pandemic, which pushed more
producers to seek alternatives to traditional wholesale channels.
Lockdown restrictions pushed consumers to embrace digital
offerings.
Pinduoduo has focused on agriculture since its establishment in
2015, transforming the way food is grown, transported and sold by
connecting more than 12 million farmers directly to a user base of
731 million consumers. The company was recognized earlier this
month by the central government for its work alleviating rural
poverty.“Agricultural produce is our bread and butter and making
groceries affordable and available to our 731 million consumers
wherever they are, whenever they want, is our calling,” said Chen
Lei, Chief Executive Officer of Pinduoduo. “Digital agriculture
increases the efficiency of the food supply chain and safeguards
food security at the same time. We’re just at the beginning of the
digital revolution in agriculture and are glad that we're making
progress every day.”Last year, as Covid-19 disrupted food supply
chains and threatened farmer livelihoods, Pinduoduo held
livestreaming sessions with poverty-stricken farming communities to
promote their agricultural products and created a dedicated “Help
the Farmers” channel to showcase fresh produce from affected
areas.
The company has applied its pioneering team purchase model to
bring economies of scale to smallholder farms, by aggregating
scattered consumer interest into sizable, coordinated demand.
Connecting sellers directly with such demand helps eliminate added
costs and wastage due to unsold food.
In August 2020, Pinduoduo introduced Duo Duo Grocery, its
next-day pickup service, to help local farmers sell directly to
local consumers.
Orders placed before 11 p.m. are fulfilled by local farms and
dropped off at designated collection points by 4 p.m. the following
day, providing consumers a more economical option to premium
same-day delivery services.
Pinduoduo raised $6.1 billion in November 2020 to strengthen its
balance sheet and make strategic investments. The company is
investing in creating a logistics infrastructure that is more
suited to handling perishables. It is also investing in upstream
agri-food technology that can help raise agricultural productivity
and quality.
The company is actively evaluating global investment
opportunities in areas including alternative proteins, food safety
and precision farming.
About Pinduoduo Inc. Pinduoduo provides an
online marketplace that connects millions of agricultural producers
with consumers across China. Pinduoduo aims to bring more
businesses and people into the digital economy so that local
communities can benefit from the increased productivity and
convenience through new market opportunities.
For more information on Pinduoduo news and industry trends,
please visit our content hub at
http://stories.pinduoduo-global.com/.
For media enquiries, please contact us at
internationalmedia@pinduoduo.com.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/116786e8-8cc9-4749-8a6a-68c11df40bdc
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