Pinduoduo’s reported fourth-quarter revenue topped analyst estimates, as China’s social e-commerce platform pledged to make basic necessities more affordable and set a goal to become the world’s top grocer.
Revenue in Q4 2020 rose 146 % YoY to RMB 26,547.7 million ($4,068.6 million), beating consensus analyst estimates. Its full-year revenues in 2020 were RMB59,491.9 million (US$9,117.5 million), representing an increase of 97% YoY.
The number of annual active buyers increased by 57 million to reach 788.4 million for the trailing 12 months, up 35% YoY.
Pinduoduo’s monthly active users, a measure of user engagement, reached 719.9 million in 2020, up 50% YoY.
Annual spending per active buyer was RMB 2,115.2 (US$324.2) in Q4 2020, an increase of 23% from RMB 1,720.1 in Q4 2019.
GMV in the twelve-month period ended December 31, 2020 was RMB1,667.6 billion (US$255.6 billion), an increase of 66% from RMB1,006.6 billion in Q4 2019.
It aims to become the world’s largest agriculture and grocery platform, and make groceries sourced around the world affordable and available to its users.
Pinduoduo launched Duo Duo Grocery in August 2020 after observing that consumers are increasingly turning to online platforms to purchase food.
Duo Duo Grocery allows consumers to order their groceries through the (online) Pinduoduo app the day before and pick up the orders from selected (offline) collection points, connecting local farmers with local consumers and giving new impetus to the farm-to-table movement.
Last year, consumers bought more than RMB 270 billion worth of agriculture-related products on Pinduoduo, a doubling in value from 2019 and cementing the company’s position as the largest agriculture platform in China.
Pinduoduo launched its mobile payment platform Duoduo Wallet in December 2020.
It takes only three steps to activate Duoduo Wallet, which takes less than 30 seconds. This impressive registration process is based on Pinduoduo’s original user account system. The real name information system will fill in automatically, and the user will enter the bank card binding process after confirmation.
Binding a bank card with mobile payment apps usually requires the step to enter the card number. But Duoduo Wallet doesn’t need it. Users just need to select the corresponding bank name, and then enter the verification code received on your mobile phone number.
This simple and smooth process can definitely expect a higher adoption rate.
Currently, Pinduoduo users can choose Duoduo Wallet or other payment platforms such as WeChat Pay and Alipay at checkout.