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As many of the country’s tech founders hand over the reins, it’s worth remembering that once start-ups grow to a certain size they need professional managers to take over.
- Revenue of the Chinese e-commerce giant reached US$7.2 billion in the June quarter, up two-thirds from a year ago
- PDD will outgrow peers as monthly usage of the company’s app is increasing while Temu is expanding to more countries, Morgan Stanley says
The budget shopping app operator faces tough competition in Southeast Asia against larger rivals such as Alibaba’s Lazada, ByteDance’s TikTok Shop and Singapore-based Shopee.
The reinvigorated state of the tech sector is reflected in the recruitment efforts of several large firms, including Alibaba, ByteDance and Meituan.
The PDD-owned app kicked off its Asian expansion last month with a launch in Japan, and has signalled interest in the Southeast Asian market.
Jiang, who lost his place in Alibaba’s influential partnership in April 2020 after an alleged extramarital affair, is expected to help steer the company’s e-commerce business through intensifying competition.
As China’s cross-border e-commerce market grows, aided by success of Temu and Shein, some US government representatives want to remove a valuable trade exemption for Chinese shippers.
E-commerce firms avoided discussing gross merchandise value numbers, once a key indicator of success, after China’s second-largest shopping festival concluded.
Amazon says Temu does not meet the strict qualification requirements for its fair pricing policy, meaning some products on the rival platform could be cheaper.
The move could help boost JD.com’s offerings of cheaper products, but the company also needs to protect its brand image, analysts say.
Shein’s new regional headquarters in Ireland covering the EMEA market comes after it was recently ensnared by US scrutiny of Chinese apps, including Pinduoduo sibling Temu.
PDD Holdings is moving some of its operations to Dublin, while Pinduoduo says its head office will remain in Shanghai, as it rapidly expands overseas with budget shopping app Temu.
Pinduoduo’s international sibling Temu is opening in France, Italy, Germany, Netherlands, Spain and the UK, bringing its total markets to 10.
Chinese-backed digital platforms Shein and Temu have become the latest targets of the US government, after a report raised concerns over their data risks and other business practices.
Temu downloads reached 19 million in the quarter ended March, keeping its position at the top of the download charts as it battles Shein for US consumers.
Taobao’s new budget channel, named 99 Temai, initially covers hundreds of thousand of items that include household goods, snacks and plants.
Pinduoduo is no longer found in Google’s Android app store as of Tuesday, while sibling app Temu remains available.
PDD Holdings subsidiary Temu reportedly plans a UK launch after opening in Australia and New Zealand, as it rapidly expands across the Anglosphere.
Temu’s latest expansion initiative shows how next-generation Chinese e-commerce apps have become an online retail force in other large consumer markets.
With a long regulatory storm now over, China’s Big Techs firms are squaring up for price wars as they seek to eke out growth in increasingly crowded markets, and consumers are likely to win.
Chinese e-commerce giant JD.com is hammering out details of a multibillion yuan subsidy campaign launching next month, sources said.
Launched in the US last September, Temu recorded a gross merchandise volume exceeding US$50 million in the week through February 5.
Tech giants from Meta Platforms to ByteDance face challenges in cracking the live-streaming e-commerce market in the US, as technological gaps and a lack of charismatic talent have made it difficult for businesses to recreate the popular shopping trend in China.
Temu ran a 30-second commercial during Sunday’s National Football League championship game, which was expected to draw tens of millions of viewers.
The initiative is expected to make it easier for online merchants to set up bricks-and-mortar stores in the Chinese capital to help increase sales, while boosting ‘flexible employment’ in the sector.
The international expansion of Temu, Shein and TikTok Shop reflects how the operators of these apps are finding more opportunities beyond mainland China.
The plan’s emphasis on the internet sector shows that Chinese policymakers recognise the role of the digital industry in boosting consumer spending, analysts say.
Pinduoduo and ByteDance’s TikTok are trying to follow the success of Shein in the US, but taking on e-commerce giant Amazon will prove a herculean task.
Pinduoduo’s jump in revenue contrasts with tepid growth for other players, reflecting changing behaviour of Chinese consumers as economy takes a turn for the worse.
Temu has become the most-downloaded shopping app in the US this month as it aims to compete in cheap fast-fashion, but higher costs in the competitive consumer market could prove challenging.
Alibaba will kick off its extended Singles’ Day promotion in October, as the e-commerce sector’s premier event contends with China’s slowing economy and disruptions from Covid-19 control measures.
