Pinduoduo Shares Slide 11.43% Amid Double 11 Frenzy and Global Expansion Moves

Amidst the competitive dynamics of China's e-commerce market, Pinduoduo has seen a decline recently. On October 15, its shares fell by 5.75%, marking a continuous two-day drop of 11.43%. This movement coincides with the simultaneous launch of the "Double 11" shopping festival, alongside competitors Alibaba and JD.com.

This year's "Double 11" campaign began earlier on October 14 for the trio, compared to their staggered starts last year. Pinduoduo has actively updated its iOS application, signaling the kick-off of the event and encouraging users to seize promotional coupons.

In a broader context, Pinduoduo's international expansion, particularly through its cross-border platform Temu, has drawn significant attention. Launched in the U.S. in September 2022, Temu has rapidly extended its reach across North America, Australia, and Europe. As of October 2024, Temu operates in 82 countries and regions globally.

Recent reports indicate that Temu's app has surged to become the third-most downloaded among major e-commerce platforms, with user figures approaching 91% of Amazon's. It is projected that by the end of 2024, Temu's user base may surpass that of Amazon, a formidable achievement given Amazon's longstanding market presence.

Temu's strategy capitalizes on cost advantages by using tax exemptions for low-priced goods in various regions. Additionally, its semi-managed model launched in March allows merchants to choose their warehousing logistics solutions, optimizing cost-efficiency and enhancing customer delivery experiences.

These developments highlight the increasing global competitiveness of Pinduoduo's business model. The adaptability and rapid growth of Temu illustrate the evolving landscape of cross-border e-commerce, challenging established giants and reshaping online shopping preferences worldwide.