Pinduoduo says Chinese consumers show more ‘rational’ buying behaviour during its Singles’ Day sales promotion as sales jump

Pinduoduo, the bargain e-commerce app operated by PDD Holdings, is enticing China’s cost-conscious consumers with steep price subsidies during this year’s Singles’ Day shopping festival, as it reported a year-on-year jump in sales in lower-tier cities in the first days of its promotion.

Within the first three days of its Singles’ Day promotion that began last week, the company saw sales in fourth and fifth tier cities up 167 per cent year on year, faster than the 113 per cent growth seen for first tier cities, according to data released by the company and cited widely by Chinese media. The company did not disclose the exact sales figures.

Pinduoduo said the consumption philosophy among its users this year appeared to be more “rational”, meaning that shoppers are buying only what they need rather than spending blindly on aspirational items.

Mothers and the younger generation born after 2000 in third and fourth tier cities have favoured local brands, buying local beauty products, home appliances and sports products from big-name domestic labels. White-collar workers and middle-class consumers in first tier cities are buying more day-to-day goods such as fruit and cat food, as well as digital products.

Pinduoduo said many home-grown brands have become a popular choice for consumers this year, such as Shanghai’s local cosmetics brand Bee&Flower and Li Ning, a Chinese sportswear retailer founded by a former Olympic gymnast.

Pinduoduo, which did not specify the date when its promotion started, said the number of brands and products taking part in the event has hit a new high this year, with more than 20 product categories achieving double the growth of last year.