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Time of India
5 days ago
- Business
- Time of India
JD. com faces battle to gain ground in China's instant delivery market
Academy Empower your mind, elevate your skills Chinese ecommerce giant JD. com is going all out to build its instant-delivery business to diversify revenue, but breaking into the competitive industry is proving company has poured billions into JD Takeaway, the food-delivery unit it launched in February, to cut reliance on a core retail business hit by a weak economy and tough results on Thursday showed the service has lifted its user base, traffic and revenue, with both quarterly active customer growth and shopping frequency up more than 40%.But it is struggling to take market share from long-established incumbents Meituan , the industry leader, and Alibaba 's Daily active users in JD's delivery business have fallen steadily since peaking in mid-June, slipping more than 13% week-on-week by July 27 versus a 6% drop and a 1% gain in the previous two weeks, M Science data data signals "a significant loss of momentum for , and likely market share loss", M Science analyst Vinci Zhang said."Meituan and Alibaba already have considerable domain expertise in food delivery , and I don't think JD has expertise in that area yet. It will be very challenging," Zhang food delivery investments have also squeezed profitability. Its adjusted operating margin shrank to 0.3% in the June quarter from 4% a year daily orders across food and retail goods reached an all-time high of 120 million. The company holds nearly 70% of the delivery market, Morningstar analysts said in Taobao instant commerce business combined with reached 80 million daily orders early in July, with daily active users crossing 200 executives have warned of fierce competition, with the three companies together pledging nearly 200 billion yuan ($27.87 billion) in recent months to subsidize instant delivery, sparking an "instant retail" price war that has drawn regulatory scrutiny."The competition started to intensify since July," JD. com CEO Sandy Xu said on Thursday, adding the company was focused on improving its platform to attract more users, merchants and and Alibaba are yet to report quarterly results.
Time of India
16-07-2025
- Entertainment
- Time of India
Labubu craze: Pop Mart profits up 350% ; collaborations with global brands boost reach
Pop Mart soars on Labubu craze (Image: AP) Chinese toy giant Pop Mart is expecting its profits to increase by over 350 per cent in the first half of this year, driven by the remarkable global craze for its Labubu dolls, the company announced. The Beijing-headquartered firm, popular for its blind box collectibles, said revenues for the January-June period more than tripled, fuelled by booming international demand and cost control. Pop Mart's stock market valuation has soared to over $40 billion, with its shares surging nearly 600 per cent in the past year. The viral Labubu dolls — quirky, elf-like characters with jagged teeth — have become a global sensation, flying off shelves and sparking long queues in stores worldwide. Originally launched in 2019, the dolls have boosted Pop Mart into a major international retailer, now operating over 2,000 vending machines and stores globally. Sales outside mainland China made up nearly 40 per cent of total revenue in 2024, a remarkable shift for the company which began trading on the Hong Kong Stock Exchange in 2020. Vinci Zhang, senior analyst at equity research firm M Science, told the BBC that Labubu obsession in the United States has hit new highs, thanks in part to high-profile endorsements from celebrities like Kim Kardashian and Blackpink's Lisa. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Get ₹2Cr life cover@ ₹700 p.m. ICICI Pru Life Insurance Plan Get Quote Undo According to M Science estimates, Labubu sales in the US surged by a staggering 5,000 per cent in June compared to the same period last year. 'I've not seen anything like this from other toy companies,' Zhang remarked, highlighting the explosive growth in demand. Pop Mart's collaborations with major brands like Coca-Cola and popular manga series One Piece have also raised Labubu's global appeal. The frenzy has also sparked a thriving resale market, with dolls previously priced at 10 dollars now being sold for hundreds of dollars. In one case, a human-sized Labubu was auctioned for a massive 150,000 dollars in Beijing this June. The brand's popularity has also led to a surge in counterfeit products, often dubbed "Lafufu dolls". In June alone, Chinese authorities seized over 46,000 fake Labubu, as part of a larger crackdown on the black market. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Times
28-05-2025
- Business
- Business Times
Temu-owner PDD Holdings profit dives as it faces challenges at home and abroad
[SHANGHAI] Chinese e-commerce firm PDD Holdings saw first-quarter net profit fall 47 per cent to 14.7 billion yuan (S$2.6 billion) as its domestic platform suffered from intense local competition and its international business was hit by global trade uncertainty. US-listed shares of the company fell more than 17 per cent. '[PDD's] massive bottom line miss is due to much weaker than expected operating margin, likely impacted by US tariffs,' said Mscience analyst Vinci Zhang. Despite deep price cuts by retailers and government stimulus measures to boost spending, a prolonged property crisis in the world's second-largest economy has cast a shadow over consumer spending in China, even on PDD's Pinduoduo, which has out-performed peers with its low-price focus. 'Slower domestic consumption, intensified competition, and global trade frictions are weighing on growth,' said US Tiger Securities analyst Bo Pei. 'Elevated costs reflect strategic promotional activities and advertising spend to support merchant sales, it's aimed at supporting the platform's long-term ecosystem health but sacrifices near-term profitability.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up China's largest online e-commerce platforms – Alibaba, Pinduoduo and – have been scrambling for a greater share of the domestic market, sparking a long-running price war to entice consumers to open their wallets. Alibaba's quarterly revenue also missed estimates, although notched a beat, buoyed by a government trade-in scheme focused on its strongest categories, including home appliances and electronics. Meanwhile, a tit-for-tat tariff escalation between the US and China, followed by a temporary 90-day de-escalation, has generated widespread uncertainty for global business Temu. 'Radical change in external policy environments such as tariffs has created significant pressure for our merchants,' PDD chairman and co-CEO Chen Lei told analysts in a post-earnings call. The US earlier this month slashed tariff rates for goods from China valued at under US$800 entering the country under the 'de minimis' provision, a trade exemption leveraged by Temu to avoid tariffs and keep prices low. 'Our global business is working with merchants across regions to bring stable prices and abundant supply to strengthen our operations in the markets we serve,' Chen said, reiterating Temu's desire not to raise prices in the face of tariffs and its strategic shift to seeing more orders fulfilled by local merchants. PDD reported revenue of 95.7 billion yuan for the quarter ended Mar 31, compared with analysts' average estimate of 102.5 billion yuan, according to data compiled by LSEG. REUTERS
New Straits Times
28-05-2025
- Business
- New Straits Times
Temu-owner PDD Holdings profit dives as it faces challenges at home and abroa
KUALA LUMPUR: Chinese e-commerce firm PDD Holdings saw first-quarter net profit fall 47 per cent to 14.74 billion yuan (US$2.05 billion) as its domestic platform suffered from intense local competition and its international business was hit by global trade uncertainty. US-listed shares of the company fell more than 17 per cent. "[PDD's] massive bottom line miss is due to much weaker than expected operating margin, likely impacted by US tariffs," said Mscience analyst Vinci Zhang. Despite deep price cuts by retailers and government stimulus measures to boost spending, a prolonged property crisis in the world's second-largest economy has cast a shadow over consumer spending in China, even on PDD's Pinduoduo, which has out-performed peers with its low-price focus. "Slower domestic consumption, intensified competition, and global trade frictions are weighing on growth," said US Tiger Securities analyst Bo Pei. "Elevated costs reflect strategic promotional activities and advertising spend to support merchant sales, it's aimed at supporting the platform's long-term ecosystem health but sacrifices near-term profitability." China's largest online e-commerce platforms - Alibaba , Pinduoduo and - have been scrambling for a greater share of the domestic market, sparking a long-running price war to entice consumers to open their wallets. Alibaba's quarterly revenue also missed estimates, although notched a beat, buoyed by a government trade-in scheme focused on its strongest categories, including home appliances and electronics. Meanwhile, a tit-for-tat tariff escalation between the US and China, followed by a temporary 90-day de-escalation, has generated widespread uncertainty for global business Temu. "Radical change in external policy environments such as tariffs has created significant pressure for our merchants," PDD chairman and co-ceo Chen Lei told analysts in a post-earnings call. The US earlier this month slashed tariff rates for goods from China valued at under $800 entering the country under the "de minimis" provision, a trade exemption leveraged by Temu to avoid tariffs and keep prices low. "Our global business is working with merchants across regions to bring stable prices and abundant supply to strengthen our operations in the markets we serve," Chen said, reiterating Temu's desire not to raise prices in the face of tariffs and its strategic shift to seeing more orders fulfilled by local merchants. PDD reported revenue of 95.67 billion yuan (US$13.30 billion) for the quarter ended March 31, compared with analysts' average estimate of 102.51 billion yuan, according to data compiled by LSEG.
Yahoo
27-05-2025
- Business
- Yahoo
Temu parent sees stock plummet after earnings miss
Temu's parent company, PDD Holding, saw shares fall about17% on Tuesday morning after reporting a major first-quarter earnings miss. The Chinese e-commerce giant reported that its first-quarter net profit plummeted 47% as it grapples with a trade war and domestic competition. Mscience analyst Vinci Zhang told Reuters the 'massive bottom line miss is due to much weaker than expected operating margin, likely impacted by U.S. tariffs.' PDD Holdings (PDD) did report a 10% year-over-year increase in total revenues for the first quarter of 2025, reaching RMB95.67 billion (US$13.18 billion), primarily from gains in online marketing and transaction services. But the company's operating profit dropped 38% to RMB16.09 billion (US$2.22 billion). Non-GAAP operating profit also declined 36% year-over-year to RMB18.26 billion (US$2.52 billion). U.S. Tiger Securities analyst Bo Pei told Reuters that 'slower domestic consumption, intensified competition, and global trade frictions are weighing on growth.' Temu was set to be one of the companies most affect by Trump's trade war with China since its products were subject to hefty tariffs. The planned closure of the de minimis loophole will no longer allow shipments under $800 to come into the country without facing levies. While many of those tariffs have been deescalated or paused, PDD is still feeling the hurt. 'A slowdown in growth rate is expected as our business scales and challenges emerge. This trend has been further accelerated by the changes in the external environment in the first quarter,' Jun Liu, VP of Finance of PDD Holdings, said in a press release. 'Our financial results may continue to reflect the impact of sustained investments in the ecosystem as we support merchants and consumers through uncertain times.' For the latest news, Facebook, Twitter and Instagram.
