Temu's parent company, PDD Holdings, increased its profits by 245% during the 2024 Q1

Chinese group PDD Holdings, owner of e-commerce platform Temu and Pinduoduo, posted an attributable net profit of 27.997 billion yuan (3.592 billion euros) in the first quarter of 2024, an increase of 245% compared to the profit of 8.101 billion yuan (1.039 billion euros) reported in the same period of the previous year, the group said in a statement.

The Chinese group's revenue totaled 86.812 billion yuan (€11.136 billion) in the period above, an increase of 131% compared to a year earlier.

PDD Holdings' revenue in the quarter increased by 55.8% in the online marketing and other services business to 42.456 billion yuan (€5.446 billion). Similarly, transaction services revenue increased 327%, totaling 44.355 billion yuan (€5.69 billion).

"In the first quarter, we continued our investment in key areas critical to our high-quality development strategy," said Jun Liu, vice president of finance at PDD Holdings, explaining that "instead of focusing on short-term results, we prioritize long-term value creation and remain committed to further deepening our investments in the future."

On his side, Jiazhen Zhao, co-CEO of PDD Holdings, noted that the company will focus its efforts on improving the overall consumer experience, strengthening its supply chain capabilities, and fostering a healthy platform ecosystem: "This year is critical for us to deepen the execution of our high-quality development strategy".

After presenting these results, the owners of Temu and Pinduoduo soared on Wall Street by 6% at the open.

Temu’s growth in Spain 

According to a study by Semrush, the Chinese platform is the e-commerce platform that has grown the most in Spain over the last year. Since April 2023, the number of users accessing the platform has multiplied by more than 15 times, reaching 10,872,252.

The predominant profile of Temu shoppers is mostly female, representing 59.8% of its user base. These female consumers, mainly between 25 and 34 years old with low incomes, access Temu mostly through mobile devices. 

According to Semrush, the target audience for Temu in Spain is a woman between 25 and 34 years old, with a low income, and who does not have a university degree. This profile provides a clear view of the type of consumer who is attracted to the offer and shopping experience that Temu provides, highlighting the relevance of adapting strategies to meet the preferences and needs of this specific segment.