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Temu announces 144 percent increase in net profit of Q2
(MENAFN) E-commerce giant BDD Holdings, the parent company of the popular shopping platform Temu, reported a significant increase in its second-quarter net profit, reflecting its growing competitiveness both domestically and internationally. The Shanghai-based Chinese company announced that its net profit for the quarter ended June 30 surged to USD4.4 billion, marking a 144 percent rise compared to the same period last year. Sales also saw a substantial increase, rising by 86 percent year-on-year to reach USD13.4 billion, according to a French news agency.
BDD Holdings, which owns Pinduoduo, a Chinese online marketplace known for offering low-cost products since its launch in 2015, is capitalizing on a market trend where Chinese consumers are increasingly shifting their spending towards more affordable options. The company’s success in both domestic and international markets is largely attributed to this consumer shift. Pinduoduo's international counterpart, Temu, has particularly gained traction due to its low prices and sophisticated algorithms that enhance user experience.
Temu has rapidly become one of the most popular online shopping platforms in the United States, largely driven by a strategic marketing campaign that included prominent ads during the American Super Bowl. The platform has also seen rapid growth in Europe, despite only entering the European Union market in April 2023. However, Temu's expansion in Europe has not been without challenges, as it faces intense scrutiny from consumer groups over its business practices.
As a result of BDD Holdings' continued success, its founder Colin Huang has ascended to the top of China's wealth rankings, with a fortune estimated at USD48.6 billion, according to the Bloomberg Billionaires Index in August. Despite its achievements, the company is under investigation by South Korean regulators, who in April launched a probe into Temu over allegations of unfair practices, including false advertising and concerns about product quality.
BDD Holdings, which owns Pinduoduo, a Chinese online marketplace known for offering low-cost products since its launch in 2015, is capitalizing on a market trend where Chinese consumers are increasingly shifting their spending towards more affordable options. The company’s success in both domestic and international markets is largely attributed to this consumer shift. Pinduoduo's international counterpart, Temu, has particularly gained traction due to its low prices and sophisticated algorithms that enhance user experience.
Temu has rapidly become one of the most popular online shopping platforms in the United States, largely driven by a strategic marketing campaign that included prominent ads during the American Super Bowl. The platform has also seen rapid growth in Europe, despite only entering the European Union market in April 2023. However, Temu's expansion in Europe has not been without challenges, as it faces intense scrutiny from consumer groups over its business practices.
As a result of BDD Holdings' continued success, its founder Colin Huang has ascended to the top of China's wealth rankings, with a fortune estimated at USD48.6 billion, according to the Bloomberg Billionaires Index in August. Despite its achievements, the company is under investigation by South Korean regulators, who in April launched a probe into Temu over allegations of unfair practices, including false advertising and concerns about product quality.
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