Pinduoduo 4Q revenue tops estimates, states goal to be world’s top grocer
March 17 2021 - 6:40AM
Pinduoduo’s reported fourth-quarter revenue topped analyst
estimates, as China’s largest agriculture platform pledged to make
basic necessities more affordable and set a goal to become the
world’s top grocer.
Revenue in the quarter ended Dec. 31, 2020, rose
146 % from a year earlier to RMB 26,547.7 million ($4,068.6
billion), beating consensus analyst estimates. The number of annual
active buyers increased 57 million to reach 788.4 million for the
trailing 12 months. Monthly active users, a measure of user
engagement, reached 719.9 million.
“We hope that in the next stage, Pinduoduo will
become the world’s largest agriculture and grocery platform, and
make groceries sourced around the world affordable and available to
our users,” said Chen Lei, Chairman and CEO of Pinduoduo.
To achieve this goal, the company will build an
agriculture-focused logistics infrastructure platform that will
reduce waste, lower costs and speed up the delivery of agricultural
products, Chen said. Calling it a “work in progress,” the
infrastructure will require “a few more years of investment before
it can realize its full potential and achieve efficiency,” he
said.Pinduoduo will continue to invest in agriculture and food
technology to contribute to China’s agricultural sector development
and increase the resilience of the food-supply chain, Chen said.
The company will look into global investment opportunities in
alternative proteins, food safety and precision farming. In giving
a recap of 2020, Chen noted that the Covid-19 pandemic has put
Pinduoduo through its “toughest test” since its founding six years
ago. The pandemic also accelerated the “blending” of the online and
offline worlds, making a distinction between the two spheres
increasingly irrelevant.
This seamless merging of the two spaces has been
powered by the mobile internet and has thrown up new opportunities.
Pinduoduo launched Duo Duo Grocery in August 2020 after observing
that consumers are increasingly turning to online platforms to
purchase food. Duo Duo Grocery allows consumers to order their
groceries through the (online) Pinduoduo app the day before and
pick up the orders from selected (offline) collection points,
connecting local farmers with local consumers and giving new
impetus to the farm-to-table movement.
Last year, consumers bought more than RMB 270
billion worth of agriculture-related products on Pinduoduo, a
doubling in value from 2019 and cementing the company’s position as
the largest agriculture platform in China. At the same time, the
hardships and dislocations brought on by Covid-19 have underscored
the importance of doing more to promote digital inclusion of rural
communities and disadvantaged groups, Chen said. The company was
among the leading technology companies commended for making
outstanding contributions to the fight against rural poverty.
“Pinduoduo started off by selling fresh produce
online. It was a conscious decision because we found them to be a
necessity, and optimizing their production, distribution and
consumption would bring the greatest widespread benefit,” Chen
said. “We have never lost sight of this beginning, and agriculture
has consistently been a strategic priority for us.” The company is
creating a more level playing field for businesses of all sizes by
not charging additional sales commissions, while its personalized
recommendation emphasizes individual products. This includes the
agricultural sector, where margins are thinner, he said. “Going
forward, Pinduoduo, as a pioneer in this space, will build on the
lessons we have learned and double down to improve our offering to
our users,” Chen said. “We will always be on the lookout for new
ways to create more value for them.”
For investor and media inquiries, please contact:
Pinduoduo Inc.
investor@pinduoduo.com
internationalmedia@pinduoduo.com
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