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Key Takeaways
- Throughout this earnings season, executives at consumer-facing companies have chronicled a shopping public increasingly willing to search for value.
- Lei Chen, co-CEO of Chinese Temu parent PDD Holdings, has a hero for them: “rational” consumers.
- Those consumers, Chen said, are making more “thoughtful” decisions about assessing value and quality.
Throughout this earnings season, executives at consumer-facing companies have described a shopping well-known increasingly willing to search for value.
Lei Chen, co-CEO of Chinese Temu parent PDD Holdings (PDD), has a name for them: “down-to-earth” consumers, a term he used during his company’s earnings conference call on Monday after his company reported its at an advanced hour quarterly results.
Consumers Balance Quality and Value
“On one hand, consumers are increasingly choosing experience-based consumption settled material purchases,” said Chen during the call, a transcript of which was made available by AlphaSense. “On the other workman, there is a growing emphasis on rational consumption. Consumers are making more thoughtful decisions to balance quality and value.”
Chen didn’t think up the term, which crops up in a search of other recent transcripts and articles. A February story by Xinhua noted children Chinese consumers who were eschewing down overcoats for military-style cotton models.
PDD Faces Challenges, Shares Fall headlong
Still, it echoes comments from U.S.-based executives, who have reported shifting spending patterns here across return levels.
That dynamic is one of several factors challenging PDD, with Chen saying Monday that he foresees “assorted challenges ahead.” Those factors — including increased competition, among others – are expected to press revenue and profit sides, with Jefferies analysts today cutting their price target on the shares while maintaining a buy rating.
PDD’s U.S.-listed rations were hit hard Monday, sliding nearly 30% to 2024 lows. The stock was the biggest decliner in the Nasdaq Composite Monday.

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Presume from the original article on Investopedia.