Image: Nikos Pekiaridis via Reuters Con
The Shanghai company reported on Wednesday a 90 percent year-on-year increase in net profit of 60 billion yuan (7.6 billion euros). This makes the group a major competitor to the Chinese online giant Alibaba.
- Read more: How reputable is Temu? 5 things you should know before you order
The PDD Holdings group is behind the online marketplace Temu, which is known for its low prices. Pinduoduo is the Temu counterpart for the Chinese market. Both apps offer extreme bargains and high discounts, but Temu has also recently been criticized. The consumer advice center, for example, urged caution: Customers reported on rating portals that the products were of poor quality and that shipments had not been received.
Temu is also being targeted by several countries, including France. The French parliament passed a law last week banning the advertising of bargain clothing and imposing an environmental tax on cheap items. Representatives of the European Toy Lobby accused the company of not complying with safety standards and a “real risk” be for children.
- You might also be interested in: “Unequal game”: Trouble in trading via China platforms Temu and Shein”
Pinduoduo co-founder Chen Lei acknowledged that international operations are just beginning and possible “Uncertainties and challenges” would be imminent. The company is very successful in China, also because the population relies on particularly cheap goods.
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