---
title: "Chinese E-commerce 'Pinning' Its Way Overseas"
description: "In the era of global recovery, with the rise of e-commerce for all, Pinduoduo has emerged victorious. On November 28, Pinduoduo Group released its third-quarter earnings report, showing revenue of 68.84 billion yuan, a year-on-year increase of 93.9%, and net profit of 15.54 billion yuan, with a net profit margin of 22.6%. Following the report, Pinduoduo's US-listed shares surged over 18% at the open, reaching a high of $139.93 per share, and closing at $139, with a market value of $184.7 billion, approaching the $200 billion mark. Pinduoduo's success is hard-won through real competition."
author: "关不羽"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2023-12-08"
language: "en"
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# Chinese E-commerce 'Pinning' Its Way Overseas

> In the era of global recovery, with the rise of e-commerce for all, Pinduoduo has emerged victorious. On November 28, Pinduoduo Group released its third-quarter earnings report, showing revenue of 68.84 billion yuan, a year-on-year increase of 93.9%, and net profit of 15.54 billion yuan, with a net profit margin of 22.6%. Following the report, Pinduoduo's US-listed shares surged over 18% at the open, reaching a high of $139.93 per share, and closing at $139, with a market value of $184.7 billion, approaching the $200 billion mark. Pinduoduo's success is hard-won through real competition.

In the era of global recovery, with the rise of e-commerce for all, Pinduoduo has emerged victorious. On November 28, **Pinduoduo Group released its third-quarter earnings report, showing revenue of 68.84 billion yuan, a year-on-year increase of 93.9%, and net profit of 15.54 billion yuan, with a net profit margin of 22.6%.** Following the report, Pinduoduo's US-listed shares surged over 18% at the open, reaching a high of $139.93 per share, and closing at $139, with a market value of $184.7 billion, approaching the $200 billion mark. Pinduoduo's success is hard-won through real competition.
**Markets can go down, but consumption only upgrades** Consumer demands for product supply are always upgrading. **Consumption upgrading is not about 'buying expensive,' but 'buying right.'** This is both a challenge for e-commerce platforms and an opportunity for platform enterprises. Pinduoduo has found the right answer. Chen Lei, Chairman and Co-CEO of Pinduoduo Group, stated, "With the implementation of a series of consumption-promotion policies, the demand for consumption upgrading is growing. At the same time, we see from user behavior that consumption upgrading concerns both quality and price; it's the optimization of 'quality-price ratio,' the ultimate pursuit of good products at good prices." This captures the key point of China's current consumer market. Only with high-quality supply and a high-quality ecosystem can platform enterprises drive high-quality consumption. In recent years, Pinduoduo has emphasized high-quality transformation and has finally taken solid steps. **Pinduoduo's third quarter was truly hard-working, with 'more affordable' and 'good service' as the two engines to activate consumption. The 'Summer Carnival,' 'Duoduo Harvest Pavilion,' 'National Brands Festival,' and 'Duoduo Reading Month'—four events in three months—kept coming one after another, dazzling consumers.** Festivals cannot be celebrated randomly, and money cannot be spent recklessly. The platform economy is not highbrow art but the everyday life of thousands of households. People live by careful budgeting. Platform enterprises must also budget carefully, investing in the most down-to-earth consumption areas. **Pinduoduo invested 1 billion yuan in resources to create the 'Duoduo Harvest Pavilion,' and this money was well spent.** The platform's 300,000 agriculture-related merchants and over 1,000 agricultural production areas nationwide were included, truly benefiting and loving farmers. During the month-long 'National Brands Festival' promotion, Pinduoduo invited 58 quality domestic brands, including Shanghai Soap, 361°, Kong Feng Chun, and Erke, to the 'hundred-billion subsidy' live-streaming room for 'team building.' With real money and sincerity, it boosted the 'national trend,' and this money was also well spent. **These funds were spent on the 'surface' where consumers and merchants directly benefit.** Many more funds were invested beneath the surface, invisible to outsiders—that is, in technology. Many people think platform enterprises are just 'big middlemen,' not 'hardcore tech.' But they don't realize that serving 1 billion users and millions of merchants requires cutting-edge technology; otherwise, the system could collapse at any moment. **In the third quarter, Pinduoduo continued to increase technology investment, with R&D expenses reaching a new high of 2.85 billion yuan, a year-on-year increase of 5.5%.** Investing 2.85 billion yuan in technology is worth it. The reason this money is well spent is that it genuinely promotes the improvement of consumption quality. Consumers are not unwilling to consume; they need quality services that lower the threshold for consumption. This places higher demands on the service quality of platform enterprises. **The affordability of subsidies and promotions, along with the technological optimization of platform services, significantly reduce channel costs, enabling consumers to be willing to consume and consume with confidence.** This is the main task for e-commerce platforms in the current economic environment—not leveling up by defeating monsters, but self-transcendence. Pinduoduo has achieved this, so Pinduoduo has won.
**E-commerce Going Overseas**
**Leading Chinese Manufacturing to the Future** For platform enterprises to grow stronger, developing cross-border business is a key step. In recent years, traditional foreign trade channels have been somewhat 'blocked,' and Chinese e-commerce venturing overseas has become a surprise force. Last year, the total import and export scale of China's cross-border e-commerce exceeded 2 trillion yuan for the first time, and this year it has continued to maintain rapid growth. In the first half of the year, China's cross-border e-commerce import and export totaled 1.1 trillion yuan, a year-on-year increase of 16%, with export growth as high as 19.9%. Currently, there are over 100,000 domestic cross-border e-commerce entities, and the proportion of cross-border e-commerce in foreign trade has risen from less than 1% five years ago to about 5% now, with trading partners worldwide. Pinduoduo did not miss this latest trend. In September last year, Pinduoduo launched Duoduo Cross-Border, which 'peaked at debut.' **Currently, Duoduo Cross-Border exports over 400,000 packages daily, with a daily cargo weight of about 600 tons.** More than half of these are sent to the U.S. market. In the U.S. market, the number of SKUs has exceeded 2 million varieties, and it is expected to reach 4 million categories within this year. No matter what foreigners say, their actions are honest—'Made in China' is truly appealing. The foreign trade industry has experienced pain, lacking good channels to go global. Chinese e-commerce going overseas precisely unleashes the core strength of Chinese manufacturing. **For Chinese manufacturing to open up overseas markets, reducing channel costs and improving the 'quality-price ratio' of high-quality consumption is still the key.** The high cost of going overseas for traditional foreign trade factories is largely due to complex and cumbersome intermediate links that prevent direct access to end consumer markets. This is not just about earning more or less; it is a stumbling block for the upgrading of Chinese manufacturing. Excessively high intermediate costs affect the ability and willingness of Chinese enterprises to upgrade their products. Especially for small and medium-sized enterprises, after painstaking R&D, most profits are eaten up by intermediate links—who would still be willing to do it? E-commerce going overseas dismantles redundant intermediate links, and the unfavorable situation for Chinese foreign trade manufacturers is changing. **Innovative models such as 'full hosting' and 'flexible supply' under Duoduo Cross-Border have greatly reduced the cost of going overseas for traditional foreign trade factories.** Some domestic merchants previously had only 5 cents profit per item sold; through Duoduo Cross-Border, profits have increased dozens or even hundreds of times, greatly improving their situation. This is not an isolated case. Merchants joining Duoduo Cross-Border have not only regained orders but also generally seen profit growth, so domestic manufacturers are enthusiastic about 'hitching a ride' to go overseas. As of the end of the third quarter, Duoduo Cross-Border has penetrated over a hundred manufacturing industry belts in Guangdong, Zhejiang, Shandong, Anhui, and other places. The 400,000 packages exported daily carry the hope of growth for Chinese manufacturing. There are different markets in the world, but consumers' demand for high-quality consumption is the same. Duoduo Cross-Border has correctly opened the door to overseas markets through model innovation. With global economic recovery on the horizon, overseas markets will undoubtedly become a highlight of Pinduoduo's future growth.
**The Core of High-Quality Consumption is 'Quality-Price Ratio'** Consumer preferences and habits change, and they differ under different economic environments. But no matter how they change, the constant is the 'quality-price ratio.' Buying expensive is not wrong, and buying cheap is not wrong either. As long as you get what you pay for, it is high-quality consumption that is beneficial and not wasteful. **As the consumer market returns to rationality, e-commerce business is no longer a simple and crude price competition, but a precise operation to master the balance of quality-price ratio.** Pinduoduo has understood this deep-seated consumer demand, adjusted its business model in a timely manner, and successfully transformed to win market recognition. The good performance in the financial report is a small red flower given by the market to Pinduoduo. Of course, Pinduoduo's development path is still long, and whether it can maintain its phased market success in the long term requires further effort. Expanding overseas markets will be an important growth point. **As long as it sincerely takes meeting consumer needs as its core task, the future is promising.** A platform that ensures consumers never suffer losses or be cheated, and that what they buy is always affordable, is a good platform.


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