Since the third quarter of 2022, when Pinduoduo launched Temu, its transaction service revenue has grown rapidly, with year-on-year growth exceeding 300% for three consecutive quarters. However, this financial report is the first time that the growth rate has fallen below 300%, which shows the intensification of overseas competition.
Chen Lei also further warned about Temu's future performance country code philippines mobile in the earnings call, saying that overseas business is facing a more severe and rapidly changing international environment, business operations are increasingly interfered with by abnormal business factors, the uncertainty of future business development has increased significantly, and a gradual slowdown in revenue will be an inevitable result.
Compared with the "retreat" in revenue growth on a month-on-month basis, the increase in sales and marketing expenses indicates that the pressure from major competitors to increase promotion efforts on their own platforms is beginning to "show" on Pinduoduo.
According to LatePost, in order to cope with the competition, Pinduoduo has launched a series of countermeasures this year, such as focusing on investment negotiations, signing gambling and underwriting agreements with more brands, and increasing investment in 10 billion yuan in subsidies. In the second quarter of this year, the budget for 10 billion yuan in subsidies was increased to more than 10 billion yuan.
At the same time, Pinduoduo is also investing more resources in the promotion. The registration for the autumn promotion opened at the end of June this year. For specific categories, merchants can sign up to participate in the event even if their products are not the "lowest price on the entire network." In addition, the cost of the coupons for the promotion is borne by the platform and the merchants at 50% each.