Pinduoduo beats revenue estimates as online shopping demand soars

China’s Pinduoduo beat first-quarter revenue estimates on Friday as more people shopped on its e-commerce platform during coronavirus lockdowns that have seen many bricks-and-mortar outlets closed.

Stay-at-home orders have boosted demand for online shopping as people stock up on groceries and food items from home and sellers too turn to online platforms to run down inventories.

The growth rate of active buyers in the 12 months ended March remained robust, reaching 628 million, representing an increase of 42 per cent year on year. It took PDD only five years to raise the number above 600 million, further narrowing the gap with competitor Alibaba, which reported on Friday that annual active consumers reached 726 million by the end of March.

“Covid-19 has unleashed powerful forces that are changing the way we live, work and play. This has compressed years of behavioural change and accelerated the adoption of online commerce at an unprecedented pace,” said Colin Huang, chairman and chief executive officer of Pinduoduo, during the earnings call on Friday. “Now more than ever, people are relying on online platforms to meet not just their discretionary needs, but for their critical needs.”

The company said its average daily orders since May are close to 65 million, compared with around 50 million before the pandemic outbreak.

Pinduoduo launched its live streaming service last November, allowing merchants to demonstrate their products and interact with potential consumers in real time. This has become an important new sales channel for many vendors amid lockdowns and social distancing measures.