Shanghai-based e-commerce giant Pinduoduo reported quarterly revenue above Wall Street estimates on Monday, buoyed by a major shopping festival and price promotions to lure China’s increasingly reluctant consumers to open their wallets, reports Nikkei Asia. “We saw a recovery in consumer sentiment in the second quarter, especially during the 618 shopping festival,” said Chief Executive Chen Lei.
He cited agricultural produce, fast-moving consumer goods, consumer electronics and beauty products as standout sales performers, and said promotions had also driven up sales. As a regulatory crackdown ensnared tech giants across China in recent years, Pinduoduo heavily promoted its role connecting farmers with consumers, waiving sales commission to merchants selling agricultural products.
During a post-earnings call with analysts, Chen said a similar program would be rolled out for craftsmen and artisans in the near future. Pinduoduo, founded in 2015, first gained traction among consumers in smaller cities in China, but has since expanded its reach to top-tier cities.