Temu launches Kazakhstan site

Pinduoduo's cross-border e-commerce platform Temu recently successfully launched its Kazakhstan site, becoming its first site in Central Asia. So far, Temu has established 55 overseas markets around the world, covering many countries and regions in Asia, Europe, North America, Latin America, Africa and Oceania.

Not long ago, Temu also launched three new sites in Georgia, Mauritius and Malta, which are located in West Asia, Africa and Southern Europe respectively. Mauritius is the second national site launched in Africa after the launch of South Africa at the beginning of the year.

Pinduoduo recently released its 2023 fourth quarter and full-year financial report. In the fourth quarter of 2023, Pinduoduo's total revenue was 88.881 billion yuan, a year-on-year increase of 123%. The net profit attributable to Pinduoduo's ordinary shareholders was 23.2803 billion yuan, a year-on-year increase of 146%; not in accordance with US generally accepted accounting principles, the net profit attributable to Pinduoduo's ordinary shareholders was 25.4765 billion yuan, a year-on-year increase of 110%.

For the full year of 2023, total revenue was 247.6392 billion yuan, a year-on-year increase of 90%. Net profit attributable to Pinduoduo's ordinary shareholders was 60.0265 billion yuan, a year-on-year increase of 90%. Not in accordance with US generally accepted accounting principles, net profit attributable to Pinduoduo's ordinary shareholders was 67.8993 billion yuan, a year-on-year increase of 72%.

The financial report did not disclose the specific performance of the global business (Temu), but in the subsequent earnings call, Pinduoduo Chairman and Co-CEO Chen Lei pointed out that Pinduoduo's original intention for the global business is to use its own supply chain and technical capabilities to bring the world's excellent merchants and high-quality goods to consumers around the world, and help different consumers around the world realize their dreams. This business is still in its early stages, and there may be many changes and challenges in the future.

It is worth mentioning that according to research by Earnest Analytics: For the full year ending December 31, 2023, Temu's total revenue reached 247 billion yen (27 billion pounds), almost doubling from 130 billion yen (14.2 billion pounds) in the previous year; operating profit soared to 58 billion yen (6.3 billion pounds) during the same period, a significant increase of 93% from 30 billion yen (3.3 billion pounds) in 2022; in the fourth quarter of 2023, revenue soared 123% to 89 billion yen (9.7 billion pounds), and operating profit soared 146% to 22 billion yen (2.4 billion pounds).

Regarding customer loyalty, in terms of second purchase rate, more than 28% of Temu's first-time shoppers will buy again, Temu surpassed Walmart and Target, with a second purchase rate nearly 100% higher; in terms of sales, Temu's sales soared 840% between January 2023 and 2024, and Temu's growth rate exceeded 1,100% during the 2023 holiday season.

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