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

Pinduoduo, a discount e-commerce app run by PDD Holdings, has reported a significant increase in sales during this year's Singles' Day shopping festival. The company has been attracting China's budget-conscious consumers with substantial price reductions. The sales increase was particularly noticeable in lower-tier cities during the early days of the promotion.

In the first three days of the Singles' Day promotion, sales in fourth and fifth tier cities rose by 167 per cent year on year. This growth rate was faster than the 113 per cent increase observed in first tier cities. The company did not disclose the exact sales figures. Pinduoduo noted that the buying behaviour of its users this year seemed more 'rational', implying that consumers were purchasing only what they needed rather than indulging in unnecessary spending.

Mothers and the younger generation born after 2000 in third and fourth tier cities showed a preference for local brands. They purchased local beauty products, home appliances and sports products from reputable domestic labels. Meanwhile, white-collar workers and middle-class consumers in first tier cities were buying more everyday goods such as fruit and cat food, as well as digital products.