Yazılar

PDD Holdings Faces Revenue Miss Amid China Competition and Global Uncertainty

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PDD Holdings, the parent company of Pinduoduo and Temu, reported lower-than-expected quarterly revenue on Thursday, reflecting weak consumer demand in China despite deep discounts and government efforts to boost spending. The company generated 110.61 billion yuan ($15.3 billion) in revenue for the quarter ending December 31, missing analysts’ estimates of 115.38 billion yuan. However, it exceeded profit expectations with an adjusted earnings per share of 20.15 yuan, aided by higher investment income and favorable currency exchange rates.

Despite aggressive pricing, PDD faces intense domestic competition from Alibaba and JD.com, both of which recently posted better-than-expected earnings. Analysts suggest that Alibaba’s focus on merchant retention and JD.com’s strength in electronics—bolstered by government subsidies—have given them an edge over PDD.

Internationally, PDD’s Temu platform continues to gain traction, attracting budget-conscious shoppers in markets like the U.S. and Europe. However, it faces uncertainty due to potential changes in the U.S. de minimis policy, which currently exempts imported items under $800 from tariffs. A policy shift could impact Temu’s low-cost advantage.

Co-CEO Chen Lei acknowledged the growing challenges posed by competition and regulatory shifts, stating that PDD is exploring new business models and localized supply chain innovations to adapt. Despite these concerns, U.S.-listed shares of PDD rose 2% in early trading.

Allegro to Expand Parcel Locker Network by 2,500 Units in Poland in 2025

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Allegro, a prominent e-commerce firm, plans to expand its parcel locker network by 2,500 units in Poland in 2025, focusing on increasing its share of parcels delivered through its managed services. This move aligns with Allegro’s strategy to gain more control over its logistics and reduce delivery costs.

In a post-earnings interview, Allegro’s Chief Financial Officer (CFO), Jon Eastick, emphasized the company’s commitment to enhancing its managed delivery methods, which provide more flexibility and lower average prices as the network expands. In 2024, Allegro’s delivery costs increased by 22.9% to 2.84 billion zlotys ($736 million), prompting the company to look for more cost-effective solutions.

Over the past few years, Allegro has ramped up its investment in logistics, co-financing delivery services with merchants through its loyalty program and rolling out its own network of parcel lockers. The company added over 1,000 lockers in Poland last year, bringing its total to 4,500 lockers, with an additional 500 lockers in the Czech Republic. Allegro has also introduced a new delivery program that assumes full responsibility for the delivery process. Initially partnered with Orlen, the program will soon include DHL.

By the fourth quarter, 24% of the company’s parcel volumes were managed through Allegro’s own services, and with price adjustments in 2025, Allegro expects its parcel lockers to be more cost-effective than the most expensive third-party suppliers by the end of the year.

This significant increase in logistics investment came as a surprise to analysts at Trigon brokerage, who speculated that it could impact InPost, a parcel locker company with which Allegro has a seven-year partnership. The potential for Allegro to reduce its reliance on InPost in the future may affect InPost’s market share once the agreement expires in 2027.

Despite this, Eastick reassured that Allegro maintains strong relations with InPost, though it is exploring alternative, cost-efficient options for consumers. Following the news, InPost’s shares dropped by 5.9%.

JD.com Surpasses Revenue Estimates with Robust Demand and Government Stimulus Boost

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JD.com, China’s e-commerce giant, posted its strongest revenue growth in 11 quarters on Thursday, beating market expectations for the fourth quarter. The company’s success was driven by a combination of deep discounts, government subsidies, and a strong holiday shopping season, resulting in a 13.4% year-over-year revenue increase. JD.com reported total revenue of 346.99 billion yuan ($47.91 billion), surpassing analysts’ expectations of 332.35 billion yuan, according to data from LSEG.

Shares of JD.com rose over 5% in early trading following the positive earnings report. The company’s performance reflects the competitive nature of China’s e-commerce market, with major players like JD.com and Alibaba slashing prices to attract customers. Furthermore, the Chinese government’s fiscal stimulus efforts, which include incentives for consumer goods trade-ins, have helped boost domestic consumption.

JD.com, a significant retailer of home appliances in China, is optimistic about future consumption trends, forecasting a rebound in demand and an improvement in customer experience driven by AI. CEO Sandy Xu highlighted that the company expects stronger growth in 2024, aided by the government’s fiscal policies and technological advancements.

In addition to its e-commerce dominance, JD.com is diversifying its business. The company announced its entry into the food delivery market in February, leveraging its extensive warehousing and logistics infrastructure to expand its offerings. Analyst Vinci Zhang sees this as a natural extension of JD.com’s capabilities.

For the October-December quarter, JD.com reported net income attributable to its ordinary shareholders of 9.9 billion yuan, a significant increase from 3.4 billion yuan during the same period last year.