Pinduoduo offers uninterrupted grocery services and deliveries during Lunar New Year

Rhea-AI Summary

Pinduoduo has enhanced consumer convenience during Lunar New Year by partnering with logistics providers to ensure order dispatch despite the public holiday, starting Feb. 11. China Post and courier services have mobilized a million couriers, anticipating parcel volumes to double compared to last year. Online retail sales surged past 510 billion yuan ($79 billion) during the festive period, with online food and beverage sales up 40%. Consumers are increasingly purchasing regional delicacies and essentials through Pinduoduo, driving sales across various categories.

Positive

• Partnerships with logistics providers to ensure order delivery during Lunar New Year.
• Estimated parcel volumes are expected to double compared to last year, indicating strong demand.
• Online retail sales surpassed 510 billion yuan ($79 billion) in the festive sales period.
• Online food and beverage sales increased by 40%, highlighting consumer purchasing trends during the holiday.

Negative

• None.

SHANGHAI, China, Feb. 18, 2021 (GLOBE NEWSWIRE) -- Pinduoduo Inc. (“Pinduoduo”)(NASDAQ: PDD) has made it more convenient for consumers during Lunar New Year, the most important holiday in China, when most businesses are shut.

Pinduoduo has worked with merchants and logistics providers to stay open and dispatch orders during the weeklong public holiday, which began on Feb. 11.

In an industry first, China Post and courier companies like SF Express, Yunda Express, and J&T, are staying open during this holiday season, with an estimated million couriers out in force to deliver parcels. An official with China Post estimates that parcel volumes during the holiday period would be double that of last year.

Whereas consumers used to stockpile food and other essential items in previous years to “get through the new year,” platforms like Pinduoduo have made it possible for consumers to buy what they need when they need it by placing their orders through the smartphone.

This is especially helpful for the millions of consumers who are choosing to “stay put and celebrate” the holiday to minimize the risk of spreading the coronavirus. They are buying presents online and sending them back home. The wide variety of products on platforms like Pinduoduo also enable these consumers to buy their hometown delicacies so that they can have a taste of home wherever they are.

“The Lunar New Year is a time for reunion and in this time when some of us may have to be apart, we are glad that we can help families connect and send their love and best wishes,” said Andre Zhu, Senior Vice President of Strategy and Legal at Pinduoduo.

Consumers have increasingly taken to online shopping to fulfill their Lunar New Year needs.

Industrywide online retail sales surpassed 510 billion yuan ($79 billion) during the Jan. 20 to Feb. 3 period, Xinhua News Agency reported, citing preliminary data from the Ministry of Commerce. Online food and beverage sales were 40% higher than the same festive period a year ago, when many cities across the country were undergoing strict Covid-19 lockdowns to stem the spread of the virus.

So, what are Chinese consumers buying online leading up to the holiday?

Online sales of regional culinary highlights have surged since January as consumers stocked up on their hometown specialties, according to Pinduoduo.

Demand for local delicacies from Sichuan, Hunan, and Henan provinces was robust. Favorites include Chengdu firm tofu, Hunan grandma’s dish, Wuhan hot, dry noodles, Liuzhou snail rice noodles, Guangdong-style sausage, and Ningbo rice cake.

Among the consumers taking advantage of the promotions is Madam Yang, 54, who is staying in Chongqing with her daughter this year. Her mother, Madam Liu, 78, is back in their hometown in Wushan.

“I bought many items online and sent it to my mother in her hometown,” said Madam Yang, who also uses the Pinduoduo app to buy her groceries, which she picks up downstairs of her apartment.

The “stay-put” New Year is also driving sales of everything from dumpling makers to books to lipstick as consumers indulged in some retail therapy.

For those in their 20s, fitness equipment, pet accessories, and Kindles were among the three favorite purchases during the holiday season, according to Pinduoduo.

Self-care also ranked high up on the priority list, with strong sales of skincare and beauty products from lipstick and blusher to facial epilators.

About Pinduoduo Inc.

Pinduoduo provides an online marketplace that connects millions of agricultural producers with consumers across China. Pinduoduo aims to bring more businesses and people into the digital economy so that local communities can benefit from the increased productivity and convenience through new market opportunities.

For more information on Pinduoduo news and industry trends, please visit our content hub at http://stories.pinduoduo-global.com/. 

For media enquiries, please contact us at internationalmedia@pinduoduo.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/845755df-b64d-495a-b4cc-f86832cbae97

FAQ

What is Pinduoduo doing for the Lunar New Year holiday in 2021?

Pinduoduo has partnered with logistics providers to ensure order dispatch during the Lunar New Year holiday.

How much are online retail sales expected to reach during the Lunar New Year in 2021?

Online retail sales are expected to surpass 510 billion yuan ($79 billion) during the Lunar New Year period.

What categories of products are driving sales for Pinduoduo during the Lunar New Year?

Sales are driven by online purchases of regional delicacies, food, beverages, wellness, and lifestyle products.

How is the COVID-19 pandemic affecting consumer behavior during Lunar New Year?

Many consumers are choosing to stay put and shop online to minimize the risk of spreading the virus.

What is the estimated growth in parcel volumes for delivery companies during Lunar New Year?

Parcel volumes for delivery companies are estimated to double compared to the previous year.