The news: Pinduoduo’s revenues grew by nearly two-thirds (65%) in Q3—far outpacing that of rivals JD.com and Alibaba, making the etailer a rare bright spot in China’s otherwise gloomy retail landscape.
Zooming in: Like Shein, Pinduoduo’s strategy is to connect farmers and manufacturers directly with consumers. This allows it to keep prices low and lets producers react quickly to changes in demand.
But like other China-based retailers, Pinduoduo is contending with softening demand from domestic consumers as Beijing’s zero-COVID measures—and now growing protests against those measures—depress spending.
The big takeaway: Pinduoduo may find itself unable to deliver on international expectations as protests against Beijing’s zero-COVID lockdowns roil factories and cities.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.